Economist John Adams and I discuss the flavours of Armageddon. Which one would you like?
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Economist John Adams and I discuss the flavours of Armageddon. Which one would you like?
Please consider supporting our work via Patreon ;
Please share this post to help to spread the word about the state of things….
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– Here John Adams shows – like so many others – his Austrian School colors. He tries to come up with a coherent economic view that also incorporates his own Austrian School views/preferences and then outright fails in doing so. And as a result Adams bobs and weaves. He fails to see that the Austrian School isn’t able to provide all answers. Someone like Steve Keen is able to smash the Austrian School to pieces. (My personal opinion is that the Austrians are a bunch of nutcases).
– Yes, a falling AUD will push (import) prices higher (=price inflation) but that in turn will lead to MORE/increased (credit/debt) deflationary pressures. Just think about it this way: Are australian employers so generous to increase wages by 10% if ALL currencies rise 10% against the AUD ?
– Contrary to common believe, rising interest rates are actually Deflationary.
– Hyperinflation is only possible AFTER a Hyper-Deflation.
– Contrary to common believe HyperInflation is actually – when comes to credit- very Deflationary. Because in both cases the (REAL) value of credit falls. (=Deflation).
– The situation in the 1970s was VERY different from the situation now in e.g. the US. In the 1970s debt levels were a fraction of what they are today. The situation in the 1970s also is different from today because in those days workers/employees still received big, solid wage increases. That’s why Stagflation is simply out of the question.
– I have a question: How many workers are employed by australian building companies ? And how much credit was given to building companies and developers ? If there are A LOT OF construction companies and developers going “belly up” as well then that will drag the australian economy down even more. And think of all the companies that supply the construction sector with building material. A similar scenario played out in the US as well.