STEVE KEEN: We’re Already In The Second Great Depression, We Just Don’t Realize It Yet
Dec. 3, 2011
Steve Keen strikes us as the Nouriel Roubini of Australia: a vocal economist who pissed people off for predicting the recession before it happened, and is still pissing people off predicting further economic crisis.
In fact Keen says the world is in another Great Depression, where developed countries would be lucky to come out as easily as Japan.
Here’s an excerpt from his interview with BBC’s HardTalk:
HT: Do you really think we’re headed for another Great Depression?
SK: We’re already in one. And the same thing applied back in the last Great Depression that people didn’t call it one until it was over. Because in an experience like this you’re always hoping there’s change just around the corner, the system will turn around. It’s only after you’ve been through it people look back and see that it’s been going for some years. So the Great Depression wasn’t called the Great Depression until sometime in the late 1930s.
HT: For those people who are watching listening to this thinking okay I can cope with things as they are now, they should relax because it’s just a few more years of the same?
SK: I wouldn’t call it relaxing but certainly the situation now which economists in particular are hoping is transient is going to be a drawn out experience. The best we can hope for is something like what Japan has been through. Japan still talked about having a lost decade since 1990 but it’s really been a lost two decades.