Readers, A later additional comment: this is actually an important article relative to defining a functional economic model, NOT the positivist sciencism variety at all. This defines the elements of functional economics. The principle seems to be this, labor costs could be reduced to a low level if much of the needs of the population are supported, relative to health, education, housing, transit and more. The need for personal income could be greatly reduced through fully embracing the commons as infrastructure in its full spectrum possibilities.

:
Posted: 03:10 AM PST
Steve Keen is an Associate Professor in economics and finance at the University of Western Sydney. The second expanded edition of his popular book Debunking Economics is available now.

Interview conducted by Philip Pilkington, a journalist and writer based in Dublin, Ireland.

Readers, while I like this article, there is an aspect of it that has a bite to it, whicle is also positive. This is that the American people actually did believe the mythology of American exceptionalism, and it is has the elements of being flattered into abject poverty by sheer dint of chauvinism.

In recent weeks, the explanation for the financial and economic crisis that has gripped the world economy has shifted sharply from deregulation and lack of governmental oversight of financial institutions to fraud and criminal activity. In truth, the US Federal Bureau of Investigation began to warn of an “epidemic” of mortgage fraud back in 2004, and my colleague Bill Black has been pointing to the role played by fraud since the crisis began.

This month marks the eightieth anniversary of the 1929 Stock Market Crash that precipitated the Great Depression of the 1930s. Ironically, this comes at the very moment that the capitalist system is celebrating having narrowly escaped falling into a similar abyss. The financial crash and the decline in output a year ago, following the collapse of Lehman Brothers, was as steep as at the beginning of the Great Depression.

Readers, this deserves a closer analysis which I can not give right now. This is a transition period off of using the US Dollar as the international reserve currency. What is happening had been postponed for a long time. Using the US Dollar as the internation reserves currency was a very stupid idea, which was profitable to the big transnational banks based in the US. The other reason that is not mentioned about China's resistance, is that the US politicians has been insulting and disrespectful to China's sovereign interests for a very long time, even very recently.

Readers, this an excellent deconstruction of the pretenses and realities of neo-liberal/neo-classical trade policies. It also is applicable the structuring of economic priorities within a national sovereignty. It also covers the process of the de-legitimization of governance by serving special interests. In effect Amin is comparing authentic efforts toward economic democracy to corporatization. I will read through this again more slowly and come back with more specific comments. Tadit Anderson

Samir Amin is director of the Third World Forum in Dakar, Senegal. His

Readers, Their analysis is very Minsky like with a bit more overt cynicism. Minsky stated his instability hypothesis, roughly as stable economic conditions cultivate economic instability. Here the authors declare economic instability cultivates denial. It is sort of amazing in a certain sense that the neo-classical chorus was largely discredited by the 1929 Depression, and even so they returned fairly soon with the same ole, same ole flim flam, quickly. Afterall the conjured franchise of unearned wealth, was in need of defenders and apologists.

Readers, while the simile to the Pope of the Roman Catholic Church is apt, Dean Baker either chooses to miss the core issue or he assumes that the audience will be more willing to accept that he is stupid by ignorance or by theoretical blinders. Although both of these points are possibly true, but the important piece is that blinded ignorance has been amply rewarded all along the way politically and with respect to income.

Readers, there is a hyperlink to the original article which displays the tables properly. They are not actually substantive to Keen's argument. Keen is as always top notch. The subtext is that the neo-classical echo-chamber is the primary obstacle at the analytic level. Understand that this echo chamber is sustained by the finance sector which it serves exactly because even though the neo-classical delusions are dis-confimrmed by reality in multiple ways for the majority, it is very profitable for financialized capital. Tadit Anderson