Steve Keen On Europe's Delusion And Why The Entire World Is Turning Japanese

Tyler Durden's picture


Economic Debunker Steve Keen is interviewed by outspoken Irish journalist Vincent Browne and no holds are barred as he describes the Maastricht Treaty as a suicide pact of critically poor central-planning design of a supposed market-economy, based on financial crises never occurring, locking European governments into an austere path when stimulus is required. "Ultimately the Euro has to fail and the longer we continue the farce of believing we can make it function the larger the ultimate crash will be" is how Keen portrays the situation and describes the foreign-exchange, fiscal policy, and monetary policy shackles that have created and exaggerated the situation. This leads into a longer discussion of the state of the World and its inability to 'export into the ponzi' like Japan could from 1990 to 2010 since the entire developed world is trying to do the same thing and "there is no ponzi scheme on Mars that we can export to" leaving the globe without Japan's initial way out. The must-watch 10 minute interview goes on to discuss the endgame (a break in the political compact based on austerity pressures and military or political coups) as Keen sums up "it's amazing to see us repeating the same mistakes that were made during the 1930s but we are doing just that." ending with some potential solutions noting that there is no easy way out of this.

"You need to have accelerating debt forever to have rising asset prices forever and not even debt can accelerate forever"

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Tue, 04/24/2012 - 23:10 | 2372213 BlackholeDivestment
BlackholeDivestment's picture

The Suicide Squid of the Great Wal Mart of China, Corzine'd and Vaporized! ...bitchez. 

North Dakota ain't just flat and full of oil now. 

Dancing Bath House Boys, Rosemary's Baby & Rahm Co Supreme Court Robot just got ''organized'' to kill the United States Constitution.

The prophetic lawless bitchez are now completely open to their own claim of dominion, which is destruction and death leading to the ...wait for it  

                                      BLACK HOLE...


Tue, 04/24/2012 - 23:33 | 2372307 Unprepared
Unprepared's picture



Turning Japanese: referring to a lost decade throughout the next


Maastricht Treaty: that's a nice chapter name for a history book about causes of WWIII

Tue, 04/24/2012 - 23:44 | 2372347 Zgangsta
Zgangsta's picture

That's what Turning Japanese means??

Man, all these years I've been totally misinterpreting that song by The Vapors...

Wed, 04/25/2012 - 00:49 | 2372433 BlackholeDivestment
BlackholeDivestment's picture 

LMAO. Perfcet in reverse, lol, order. Tongues, interpretation, the parable begins in question. Lol. Now that's divesting ...bitchez. Lol. ??? Lol

Wed, 04/25/2012 - 00:38 | 2372434 ACP
ACP's picture

Not a chance. If there was a tidal wave and earthquake that killed 15,000 people in LA, there would be looting like nothing else.

Wed, 04/25/2012 - 00:44 | 2372436 lemonobrien
lemonobrien's picture

"turning Japanese" a reference to masterbation, which reflects the current state of the financial system; printing money = masterbation.

Wed, 04/25/2012 - 01:07 | 2372462 donsluck
donsluck's picture

Ah, Christian fundamentalism. I will never understand why anyone considers it relevant.

Tue, 04/24/2012 - 22:51 | 2372216 cnhedge
cnhedge's picture


An update on TARGET2

Tue, 04/24/2012 - 22:55 | 2372225 Yen Cross
Yen Cross's picture

 My name is " Yen Cross"  Care to discuss?

Tue, 04/24/2012 - 23:00 | 2372244 FXPortent
FXPortent's picture

How many Yen does it take to Cross a road?


No pun intended, bitchez.

Tue, 04/24/2012 - 23:34 | 2372327 Acorn10012
Acorn10012's picture

Why did the Yen cross the road?

Bad joke intended.

Wed, 04/25/2012 - 02:55 | 2372573 cossack55
cossack55's picture

Because a Euro was stapled to a chicken? 

Wed, 04/25/2012 - 02:00 | 2372524 Yen Cross
Yen Cross's picture

 About 83.50 aud/jpy on the dip!   I won't share the other 2 sides of the trade. Pun intended "Junior!"

Tue, 04/24/2012 - 23:50 | 2372360 prains
prains's picture

Yen Cross, i believe but could be wrong, translates into irish as "fuck shiite", but like i said this is still just a theory

Wed, 04/25/2012 - 05:57 | 2372685 johny2
johny2's picture

My theory is that Yen Cross is not a human being, but an algo program that besides trading fx, likes to read and comment on ZH. 

Wed, 04/25/2012 - 01:43 | 2372503 GMadScientist
GMadScientist's picture

Yen Cross What? Kiwi Dollar, Thai Baht, What?!!!

Tue, 04/24/2012 - 22:58 | 2372237 FXPortent
FXPortent's picture

Still waiting for this view to start trickling it's way in the MSM.

Looks like I'll be waiting a while..


Tue, 04/24/2012 - 23:21 | 2372291 Manthong
Manthong's picture

"noting that there is no easy way out of this"


Wed, 04/25/2012 - 02:04 | 2372525 Yen Cross
Yen Cross's picture

You are a trickle. No numbers and Bull Shit as usual! What is the MSM doing to you little boy?

  The MSM sets your trading plans? Looser!

Wed, 04/25/2012 - 06:27 | 2372705 BeetleBailey
BeetleBailey's picture

Pay no attention to the pretenders YC....keep on keepin on.

Dispassionate. Long and short. Fuck the naysayers.

Tue, 04/24/2012 - 23:02 | 2372241 FXPortent
FXPortent's picture

Paul Krugman on Israel, interesting read.


Seems like he understands the issue, sort of.

Tue, 04/24/2012 - 23:39 | 2372279 JenkinsLane
JenkinsLane's picture

This is all you need to know about Israel and you can take this to the bank:

"We possess several hundred atomic warheads and rockets and can launch them at targets in all directions, perhaps even at Rome. Most European capitals are targets for our air force. . . . Our armed forces . . . are not the thirtieth strongest in the world, but rather the second or third. We have the capability to take the world down with us. And I can assure you that that will happen before Israel goes under."

Professor Martin Van Crevald, January 30th 2003

(p.s. Van Crevald's "The Rise and Decline of the State" is interesting and the US military thought highly of his "The Transformation of War"

back in the day.)


Shalom goyim

Wed, 04/25/2012 - 00:53 | 2372446 spiral_eyes
spiral_eyes's picture

Israel: Threatens to nuke Europe, not a shit is given.

Iran: Tries to build a civilian nuclear power plant and OH MY FUCKING GOD WE HAVE TO INVADE.

Double standards, bitchezzzz.

Wed, 04/25/2012 - 01:26 | 2372484 TBT or not TBT
TBT or not TBT's picture

This is the classic "act like a crazy person" deterrence method.

Tue, 04/24/2012 - 23:15 | 2372280 nah
nah's picture

i dont get it...

Tue, 04/24/2012 - 23:35 | 2372322 JenkinsLane
JenkinsLane's picture

And that was before they got the free German nuclear-armed subs....


I've got some magic beans I think you'll be very interested in....


Tue, 04/24/2012 - 23:47 | 2372355 earleflorida
earleflorida's picture

Mr. Krugman understands quite well. Read between the lines? He is crying out for tolerance, in a world that seems on a path of self-destruction. No one wants to give, talk, or listen in the political arena where 'all' worldly power brokers,have turned their biases inward, abandoning the outer voice of their constituents.  

Wed, 04/25/2012 - 06:29 | 2372707 BeetleBailey
BeetleBailey's picture

Krugman is a putz. Period. He couldn't get out of his bathroom without a map.

Met him once, right after he "won" his Nobel. Total douche.

Tue, 04/24/2012 - 23:02 | 2372245 Yen Cross
Yen Cross's picture

 FX Porential?  A Trick Question?

Tue, 04/24/2012 - 23:03 | 2372250 FXPortent
FXPortent's picture


  1. A sign or warning that something, esp. something momentous or calamitous, is likely to happen.
  2. Future significance: "an omen of grave portent for the tribe".
Tue, 04/24/2012 - 23:05 | 2372259 Stackers
Stackers's picture

Actually the Euro as designed would have worked. The problem is nobody followed the rules of limiting deficit spending to 3% of GDP as prescribed by the treaty instead of the 10-15% of GDP they did spend.

Wed, 04/25/2012 - 00:04 | 2372363 Dr. Engali
Dr. Engali's picture

It would have worked but it didn't. The reason it didn't work is because you had a centrally planned currency trying to function in a balkanized area. Each area with their own political agenda.Which by the way is where we will be in a few years.
The other area of failure is reliance on perpetual growth. Deficits are easy to hide in growth mode. Not so easy once growth stops.

Wed, 04/25/2012 - 02:25 | 2372540 cranky-old-geezer
cranky-old-geezer's picture



Actually the Euro as designed would have worked.

Would have worked?

It's working perfectly, exactly as bankers want it to.




Tue, 04/24/2012 - 23:06 | 2372260 Yen Cross
Yen Cross's picture

 You caught that " H-4" Parabolic sar"?

 Your " worthless diatriabe" ( ?)


Tue, 04/24/2012 - 23:17 | 2372265 Paul Atreides
Paul Atreides's picture

+1 Prof. Steve Keen for calling it by its proper name 'Ponzi Scheme'

But how to get the population to swap euros in for punts and how to force the banks into playing along? Awareness.

The whole world needs to do this in some form or other. Force government created money into the system and remove the private debt central bank fiat over a couple of years combined with some sort of Jubilee. Until currencies can be stabilized and brought back online in FX markets perform international settlement in gold, silver and commodities.

I can dream can't I?

Tue, 04/24/2012 - 23:36 | 2372332 Dr. Engali
Dr. Engali's picture

I'd rather see them do like they are in areas of Greece. Start bartering locally and saying screw you to the fiat crap. The only way this will be solved is starting over and building up the local communities. The centrally planned global corporate machine needs to be starved to death.

Wed, 04/25/2012 - 00:17 | 2372367 Paul Atreides
Paul Atreides's picture

I agree with you the machine needs to fuck off and die and the solution proposed would not do that. The same people would be in the same positions to impose the same central planning bullshit SSDD.

But what to do with the millions if not billions that are hopelessly plugged in and dependant on the machine? How to achieve such a paradigm shift without moral hazard and threat to life? We can't sit around waiting on a pole shift or major solar event and nuclear war would leave the planet toxic.

One must stand up and act and the only moral acts short of being a Mennonite right now are buying physical silver, preparation, awareness and civil disobedience. If you or anyone else have anything else please do, we are not the only ones that feel stuck.

Wed, 04/25/2012 - 01:50 | 2372513 LowProfile
LowProfile's picture


But what to do with the millions if not billions that are hopelessly plugged in and dependant on the machine?

Not my problem, I have enough trouble with family, friends and neighbors.

And buy as much gold as silver.

Wed, 04/25/2012 - 02:30 | 2372550 cranky-old-geezer
cranky-old-geezer's picture



But what to do with the millions if not billions that are hopelessly plugged in and dependant on the machine?

Who cares, let 'em die, good riddance.

But no, the machine isn't going away, stop dreaming, come back to the real world.


Wed, 04/25/2012 - 02:59 | 2372577 cossack55
cossack55's picture

Or move to Iceland.

Tue, 04/24/2012 - 23:11 | 2372266 Yen Cross
Yen Cross's picture

 Let's discuss the " MoF data" I'll PDF. it to ya !

  Give me an E.Mail.?

                                That info after the G- 20 , and the KAMPO ideas?

Tue, 04/24/2012 - 23:10 | 2372267 Goldilocks
Goldilocks's picture

Clarke & Dawe

Clarke and Dawe - Understanding the Craig Thomson issue. (2:37)

Clarke and Dawe - Courtesy Costs You Nothing (2:45)

Clarke and Dawe - Important new research reveals enterprise doomed from the start. (2:48)

Tue, 04/24/2012 - 23:13 | 2372277 Yen Cross
Yen Cross's picture

It's not the time, Goldilocks!  Let me have some fun?

Tue, 04/24/2012 - 23:26 | 2372268 JenkinsLane
JenkinsLane's picture

This is the droid you're looking for and, somewhat surprisingly, this droid has legs:


(Jeez, I'm on fire here. Can someone text me Oscar Wilde's number?)

Tue, 04/24/2012 - 23:13 | 2372276 Freebird
Freebird's picture

Sell forward yen against a barbaric relic?

Tue, 04/24/2012 - 23:20 | 2372282 Yen Cross
Yen Cross's picture

 Hows' this?  You are an IDIOT!

                                         SELL FORWARD, is along Dead Term!  have you ever heard of ?  PUTS/CALLS?


  Git Er done " Goldi Locks" !

Tue, 04/24/2012 - 23:31 | 2372317 Freebird
Freebird's picture

How's this? You are an ASSHAT!
What ever works for you dick.
Perhaps you would care to explain not just to me but the broad ZH audience why forwards are a "DEAD TERM".

Tue, 04/24/2012 - 23:40 | 2372339 Yen Cross
Yen Cross's picture

 Hows this? You are a basement baby! 

   Never owned anything, and answer to your Mommie, Every Day!

Tue, 04/24/2012 - 23:53 | 2372365 prains
prains's picture

Yen there's alot of shiite in your fuck, lay off the pipe too.

Wed, 04/25/2012 - 02:29 | 2372546 Yen Cross
Yen Cross's picture

Ohhh the truth hurts, Basement Boy!  I'll never lay off you! It's just getting fun!

Do NOT follow this link or you will be banned from the site!