Australian economist Professor Steve Keen warned about dangerous debt levels long before the US credit crisis hit.

http://www.abc.net.au/news/stories/2008/03/19/2194170.htm

In a well reasoned analysis of the current economic dilemma, or can we call it a crisis now, Professor Keen pointed out that at some point the level of debt cannot be increased. He also pointed out that Bernanke gained his reputation as an expert on the Great Depression of the 1930’s. Hmmmm, what was so great about it? The trouble is, this is the Depression of the 21st Century. Bernanke, like all academics, is quite brilliant at analysing, but like everyone else on this planet, he isn’t so hot at predicting.

Greenspan’s only solution to everything was to print more money and channel it into the economy as debt through his mates on Wall St who collected huge incomes along the way. Greenspan also let the banks off the leash. As I wrote in another article, ‘DUNCE, they were on a leash for a reason, Greenspan’.

Bernanke is quoted as saying that he would throw money out of helicopters to create inflation, which apparently is the cure to everything.

Professor Keen said that a radical new approach to managing the economy would probably be required. In the 1930’s that took the form of ‘The New Deal’. It was the new deal that led the US and the world out of Depression. The ‘New Deal’ as I understand it, was the Government creating deficits and spending it on infrastructure so workers could have a job which meant they could spend.

However, I would beg to differ on that point with Professor Keen. From my reading of history, it was WW11 that bought the world out of the Depression. Suddenly the banks found all the money and liquidity that was needed to build weapons of mass destruction. Where as they had not been able to find the money for around a decade to build a factory.

If we continue to follow current economic orthodoxy, WWIII will be the solution. Note how the US is trying to help out there.

http://dialecticblue.blogspot.com/

Aaah foowey to all this fiscal flubbery. The real reason for the impending recession / societal collapse and possible world war is the chronic imbalance between the demand for basic resources and the supply capability, as populations continue to grow, per-capita consumption continues to increase and our primary energy source increases in cost and dwindles in its rate of supply.

Another one who loves to live in fear and wants to drag others into his weird and scary world.

World War 111 is not on the agenda because, for the first time ever, the creeps who used to start major wars are either dead or dribbling, and any of their contemporaries know that they will not be able to escape from from a major nuculear confragaltion as the old folks could from the penny bombs used prior to Hiroshima.

This section of OLO was started as a good idea for people who had something to say they couldn't get off their chests on the main forum.

Now it is flooded with wackos.

Leigh,

"...World War 111 is not on the agenda because, for the first time ever, the creeps who used to start major wars are either dead or dribbling..."

Riiight. Read a paper.

"Now it is flooded with wackos."

Welcome aboard. Nice floaties.

DialecticBlue wrote “but like everyone else on this planet, he isn’t so hot at predicting.”

That statement was almost immediately behind you writing

“The trouble is, this is the Depression of the 21st Century.”

Such a declaration can only be made in retrospect, unless you have some infallible crystal ball which confirms the current economic hiccup will be seen as the worst thing to occur in the coming 92 years.

But, I figure, you are of this planet and thus, as you proclaim, “not so hot at predicting”.

Not many would share your assassination of Greenspan, then no one was employing you in the position he was employed in either.

“It was the new deal that led the US and the world out of Depression”

Agree, Helped along by WWII

The Marshall Plan did a reasonable job of fixing the problems which, after WWI, were a major contributory cause of WWII, following the Treaty of Versailles.

I agree with Ludwig's cryptic analysis of your post “Aaah foowey to all this fiscal flubbery.”

Leigh “This section of OLO was started as a good idea for people who had something to say they couldn't get off their chests on the main forum.”

Ah come on Leigh, diversity, trial and error and chaos theory, means a fair few dullards will manage to find this area of OLO and they are entitled to post, for their own humiliation and the amusement of many.

Don’t knock it. If you want to be really scared consider this

Half the population are below average IQ (but they still get to vote)!

If the USA decided that it should not spend on arms 15 times that spent by its nearest military rival (Israel?), it might have both an economy and a good public health service.