Deflationist Steve Keen

No growth or inflation without a debt jubilee ??? Wouldn't inflation kill debt ? Unlike Japan the west does not have bankruptcy taboos and can eventually kill its zombies. Japan is a very different production based economy. It can fund its borrowing, unlike the US or UK. Unlike Japan the US and UK will be forced to monetise their debt or massively raise interest rates or both



What if China doesn't believe there will be US deflation? What if there is some inflation shock, e.g. an attack on Iran pushing up the oil price? What if this panics China and Japan and they rush to get rid of their dollar holdings by 'buying up America' and flooding the economy with hot money ?

Panic is a sudden fear which dominates or replaces thinking and often affects groups of people or animals. Panics typically occur in disaster situations, or violent situations (such as robbery, home invasion, a shooting rampage, etc.) which may endanger the overall health of the affected group. The word panic derives from the Greek πανικός, "pertaining to Pan", the god of woods and fields who was the source of mysterious sounds that caused contagious, groundless fear in herds and crowds, or in people in lonely spots. Panic is also known as an acute case of anxiety.

http://en.wikipedia.org/wiki/Panic

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