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The Three Ds of Doom: Debt, Default, Depression

The Three Ds of Doom: Debt, Default, Depression “Borrowing our way out of debt” generates the three Ds of Doom: debt leads to default which ushers in Depression. Let’s start by defining Economic Depression: a Depression is a Recession that isn’t fixed by conventional fiscal and monetary stimulus. In other words, when a recession drags on […]

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The Real Reason Wages Have Stagnated: Our Economy is Optimized for Financialization

The Real Reason Wages Have Stagnated: Our Economy is Optimized for Financialization Labor’s share of the national income is in freefall as a direct result of the optimization of financialization. The Achilles Heel of our socio-economic system is the secular stagnation of earned income, i.e. wages and salaries. Stagnating wages undermine every aspect of our […]

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We Can’t Save the Economy Unless We Fix Our Debt Addiction

We Can’t Save the Economy Unless We Fix Our Debt Addiction Our economy has increasingly been financialized, and the result is a sluggish economy and stagnant wages. We need to decide whether to stop the cycle and save the economy at large, or to stay in thrall to our banks and bondholders by leaving the debt […]

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Deflationary Collapse Ahead?

Deflationary Collapse Ahead? Both the stock market and oil prices have been plunging. Is this “just another cycle,” or is it something much worse? I think it is something much worse. Back in January, I wrote a post called Oil and the Economy: Where are We Headed in 2015-16? In it, I said that persistent very low prices […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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