Following his somewhat epic blog debate with Paul Krugman, Steve Keen appears on Capital Account with Lauren Lyster to debunk more Keynesian propaganda and the kleptocratic status quo 'debt doesn't matter' arguments. Poking holes in the stable/exogenous shock equilibrium 'model' versus the real-world's dynamic systems, the Aussie economist warms up with the zero-interest rate conundrum and liquidity trap (at around 7:00); moves on to the empirical falseness of the debt-to-unemployment relationship (at around 11:00) - implying 'debt matters all the time' as Keen explains common-sensibly (but not Neoclassically) that the 'change in debt adds to demand' and that involves banks which breaks modern economic theory (since lending is credit creation not savings transfer).
Echoing the deleveraging from the Great Depression, it could take 15 years of unwinding this epic debt bubble before its all over - but not if the status quo of deficit spending is maintained - as Keen somewhat controversially concludes (at around 13:00) "you can't just cure this with deficit spending [since debt is already beyond the black-hole's 'event horizon'], you have to abolish the private debt as well" by "quantitative easing for the public".
Student loan debt and delinquency is also discussed and its self-referential ponzi-like nature (at around 16:00)...
Keen discusses his controversial idea of a debt-jubilee and the Debt Black Hole 'event horizon' that we are already in at around 19:00... (and notably at 24:30 he discusses how to avoid the 'moral-hazard' of a modern debt-jubilee with no 'advantage' to being in debt)
At around 20:30, Keen relates the drop in bankruptcies to the low interest rate environment warning that this will just lead to an endless zombie state like Japan...
Lie-borgate is discussed at around 21:00 with his view being that the outright fraud confirms his feeling that these bankers are behaving like a parasite on the host of the economy...
"The [quantitative easing for the public] solution is not easy and not straightforward but unless we do it we are stuck on wrong side of the debt black hole's event horizon"