Our lead story: Erin talks net neutrality. Netflix CEO Reed Hastings called for manners which safeguard which big broadband providers similar to Comcast can’t assign comp…


iglwy April 16, 2014 at 1:16 pm

Great show Erin.
Who ever heard of the term “endogenous money” until the BOE starting
blabbering about it?

TorontoLibertarian April 16, 2014 at 1:40 pm

Steve Keen is a clown, he’s just throwing words around.
He obviously doesn’t understand the difference between currency and money.
He should watch some Mike Maloney videos.

bammbamm12 April 16, 2014 at 2:15 pm

OK. So the 10 lb note says that the government promises to pay the bearer
10 pounds. OK, so you give them the 10 pound IOU, and they give it back to
you? The problem is you can’t get rid of it. There are no pounds any more –
just promises to pay pounds. It’s some kind of kabbalah.

Haligonia April 16, 2014 at 2:31 pm

I just don’t understand how Steve Keen could be so favourably impressed by
the fiscal responsibility and restraint of the Western nations + Japan. The
Fed is just monetizing the fiscal debt — so where is the problem emanating
from? The government, no?

iyamthecoltraneman April 16, 2014 at 3:18 pm

Great interview, Erin! Steve Keen is amazing.

CaribSurfKing1 April 16, 2014 at 4:13 pm

Netflix uses Amazon to stream its content, what is Hastings talking about.
Netflix is just pure marketing!

Justin Templer April 16, 2014 at 4:32 pm

Steve is passing the buck, government gives private banks the authority to
create fiat money. Not only does government give the banks the authority,
it also forces people to accept that money and goes as far as to insure
that bank created money.

Michael McLoughlin April 16, 2014 at 4:39 pm

So what does Keen think all these private banks would do if the FED told
them we’re not going to be your lender of last resort anymore? For a self
proclaimed non-mainstream economist, he sure does like to shift the blame
away from the government.

Francis Ducharme April 16, 2014 at 5:11 pm

I don’t really agree with Keen saying that the government is that kind of
responsible entity while the banks alone are the trouble makers. Surely,
having the government trying to massage yield curves the closest to zero as
possible counts as being very complicit in that ‘trouble making’ if you
will. Also, if ‘private’ banks create most of the currency out there (and
they do), why would you absolutely need massive government deficits ? The
Federal Reserve system and its member banks create new currency. If
anything, the Treasury is just another participant connected through the
FedWire system.

mrzack888 April 16, 2014 at 5:34 pm

Keen just destroyed all the fear mongering libertarian gold bug morons. 

Rob Mews April 16, 2014 at 6:07 pm

Steve Keene is right about the fact taht currency is not a commodity but
wrong about private banks creating too much money to cause inflation. This
will not happen and cannot happen because government has limits on what
private banks can do. Private banks are restrained by deposit ratio limits
and in most countries do not control the amount of money in the economy.
Reserve banks or their equivalent control the amount of money through their
interest rate setting. He even says “it isn’t just the government that
controls this money”. No bank apart from the central banks set the
interst rate or have legilative power to limit lending. He also says ” they
can go too far … but they don’t normally do that” so he is admitting they
can and the word “normally” is not a definitive word. It is an admission
they sometimes do !! Private banks don’t because the can not. If some bank
could lend ad infinitum the they would continuosly lend more and more
money at lower interest rates. You only have to look at this in the light
of what he is saying to see the obvious weakness of Steve’s argument. 

Kiero Nokoma April 16, 2014 at 7:01 pm

Aggh, you got to be kidding me for leaving issue with Netflix open ended.
Clearly Netflix has had a free ride until now. Also, people pay higher
charges for internet since the ISP’s have offloaded the cost of upgrading
infrastructure to the consumer. So If I don’t use Netflix, my neighbor
does, I essentially subsidize my neighbor for streaming. Ideally the
neighbor pays twice : one for streaming movies from Netflix and other to
ISP. ISP’s are asking their due cost ! Hastings is a liar i think.

digi051669 April 16, 2014 at 7:29 pm

Steve Keen provides no solution to the issue of creep. That is what the
whole issue is. With a intrinsically backed monetary system, you are
anchored and creep is only possible when the intrinsic value is
subsequently raised too. This informs the monetary holders of any movements
in the fiat circulation. He’s one of the more enlighten economists around.
Still he’s far off the mark. Also, Bank of England is the ultimate source
of the private banking cartel. Rothschild controlled through millennia.

Samuel Morales April 16, 2014 at 8:08 pm

Steve Keen is wrong about deposits not being lent out. They are lent out,
this is why we still have a FDIC today to protect depositor money, which
the protections increase, or vary, for example Reagan increased FDIC
coverage for larger sums of deposits. Steve Keen is insinuating that
deposits are not at all part of a bank’s balance sheet. He is very wrong
about that. Now do banks only need deposits to loan out money? No they
don’t. Central Bank can create reserves whenever they want, which become
reserves of member banks, or the member bank can borrow cheaply using the
discount window. Before member banks use to abuse the discount window,
until the Fed discouraged it it’s use. The creation of money is regulated
by the Central Bank. When discussing reserves, we are not discussing vaults
of real cash per say, it’s just computer entries that represent money. This
is the same true of government bonds, they are merely computer entries that
represent the legal tender, and only made whole with real cash via cashing
in via treasury direct for example. This is what over night loans, or the
Federal Fund Rate is that regulates interbank loans between member banks
loaning to each other. There is no physical currency being transferred,
only when the bank needs it to pay to make whole a promise, that’s it.
Steve Keen also being typical left winger seems to defend government over
private entities. Remember, this guy studies Marx. Central banks regulate
money, this is why there is a huge credit expansion, and bubble in Asian
economies for example in China. It’s not because of private banks are willy
nilly creating money out of thin air out of their own power. It’s bazooka
central bank policies of collassol credit creation that increases on net
more private debt, because they create, and issue currency!!!

haden uff April 16, 2014 at 8:24 pm

it would seem to me that governments, corporations and financiers simply
complicate the simple laws of economics, supply and demand = value, to a
degree where they instill them selves as the parasitic gatekeepers of
production and wealth. thereby ensuring their own prosperity at the expense
of those that actually create wealth and prosperity. they have taken the
simple equation of 1+1=2 and fraudulently sell the concept of 1+1=3. i
trust the laws of mathematics, physics, nature and even the jungle more
than the laws of fraudsters. not to mention their predisposition to
monetize and profit from what was independently created for the public
domain and the benefit of all humanity in the first place. the solution is
simple. common sense. they overcharge for their service to the economy by
extorting more than they’re worth. and a failing economy is the
indisputable proof of their incompetence and/or deliberate fraud.
the fleas are now bigger than the dogs.

666sigma April 16, 2014 at 8:44 pm

I forget where I first saw Edward Harrison – maybe, Capital Account. I
never thought that much of him because he never says anything profound.
But he grows on you. He speaks common sense in an easy to understand way.
He is logical and measured. His views on bitcoin are a good example
whether you agree with him or not. 

Billy S April 16, 2014 at 9:09 pm

great episode, Professor Keen and net neutrality! knocked it out of park

ymkamara420 April 16, 2014 at 9:58 pm

Post Keynesian school of economics for the win again

themicmac88 April 16, 2014 at 10:10 pm

Wrong. Banks use a system called factional reserve system and use deposit
money to create money. If I deposit $1,000 dollars the banks keeps $100
just In case I want a withdraw and use the other $900 for loans but here
where the fractional reserve system becomes the scam. $900 from my deposit
is multiplied by 9, so now the banks just created $81,000 for loads. All
the people’s money is not in the bank. If everybody went to the bank and
ask for all of their money back, it’s not there! 

Lirio Bolaffio April 16, 2014 at 10:30 pm

Ha-ha-ha! What a surprise!

MrBJD35 April 16, 2014 at 10:50 pm

Ha I liked the pushback on Mauldin as well, I would love to see the same
for a Rickard’s interview and you would soon see the education gap between
the two
Rickard’s is so on another level.

crabshank3 April 16, 2014 at 11:06 pm

Banksters control the economy :(

jerran sperarman April 16, 2014 at 11:40 pm

great show erin

Ilias Bafas April 17, 2014 at 12:36 am

Huey Freeman April 17, 2014 at 12:37 am

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