This is what we need – to create realistic economics for the post-crash world. Steve Keen is to be paid attention to. He’s been on this path for a while, and has been influencing other thought leaders, at least the ones paying attention to the predicament of limits to growth.
Summary
Extraordinary measures are needed now to stop the health effects of the Coronavirus triggering a financial crisis that could in turn make the Coronavirus worse. All of these actions can be undertaken by Central Banks and financial regulators, once they have been given permission by governments. Two of these measures are already being undertaken by some Central Banks:
- A per capita payment to all citizens so that renters can pay the rent, mortgagors can service their mortgages, and workers, whether unemployed or not, can buy food and other critical goods. This can be financed as Quantitative Easing was financed, without recourse to the Treasury, or taxation (Hong Kong has already done this);
- Normal bankruptcy rules for companies and especially banks should be suspended, to allow them to continue operating despite falling into negative equity if revenues fall sharply and share prices plunge; and
- Central Banks should buy shares directly to support share prices, rather than simply buying bonds under Quantitative Easing, to prevent a stock market collapse undermining both business and banks (Japan’s Central Bank is already doing this, though for other reasons).
Read the argument here:
https://www.patreon.com/posts/modern-jubilee-34537282?fbclid=IwAR1aBouFau-rvIk8yPdg9Me6X2FlZhibhP4FUSU4DquYKstZH_97bymg6Ak
integral permaculture 