“ABC PM Debate with Chris Caton,” ABC Radio, August 7th, 2011.Steve Keen makes a quite good point about private debt to GDP ratios. His opponent complains that debt to GDP ratios make no sense, because you are comparing a stock to a flow, yet public debt to GDP ratios are used all the time by opponents of government, to gauge the burden of debt. Either it is valid to use this measure or all such ratios (whether private or public) are invalid.
I haven't heard but the opponent must be pretty clueless (as most people tbh). Actually private debt level matters A LOT, because private sector can't 'print money', and public debt levels matter quite a little bit less (see treasury securities rates) because the state in the monopolist of money.
ReplyDeleteTerrible irrational thinking around.