In Steve's recent analysis, he looks beyond the headlines to examine the real data and systemic impacts of a proposed dollar reset. A strong dollar looks like a crown. But it can become a noose. America didn’t become powerful because the dollar was the world’s currency. It became powerful because its factories could produce weapons, ships, and machinery better than its rivals. After Bretton Woods, the dollar gained an extra demand: every country needed it to trade with every other country.That pushed its value above what American goods alone justified. A 50% overvalued currency gives foreign producers a huge cost advantage. Cheap imports feel like a victory. They aren’t, because the same process slowly destroys your manufacturing base. America sent pieces of paper abroad and received physical goods in return. That looked like wealth. Over time, Japan, China, and other “vassals” became more complex industrial economies. ➡️ The result? America moved from trade surplus after World War II to sustained deficits of roughly 3–6% of GDP. - The dollar became stronger. America became weaker. - Keynes proposed something far more rational: a neutral international unit of account—the bancor—managed through an International Clearing Union. - Surplus and deficit nations would both face penalties. That matters because massive imbalances weaken deficit countries while strengthening surplus countries. Instead, America chose the short-term advantage. Now the long-term bill is arriving. - If dollar dominance ends, imported inflation will rise because Americans rely heavily on foreign goods. Higher interest rates cannot solve inflation caused by a falling currency. The lesson is simple: don’t replace one national imperial currency with another. Use a neutral international unit, make trade balances sum to zero, and limit excessive surpluses and deficits. That could reduce global instability. But ego and testosterone may get in the way. https://www.youtube.com/watch?v=3I7g5PZTN20&views

The new conversation with Steve is LIVE right now 🔥 Energy is the blind spot almost every economic model still pretends does not exist. Steve walks through the 1-for-1 lock between energy and GDP, why AI may never scale the way the hype claims, and why he thinks the Hunger Games outcome is more likely than the optimistic one. This one has to be a must watch so watch it right now! Drop your take in the comments on YouTube and let’s get this in front of as many people as possible tonight.

When a government spends more than it taxes, that deficit creates reserves in the banking system. Banks then get offered a swap at auction: trade those low-yield reserves for higher-yield, tradeable bonds. The central bank sets it up so bonds always pay more. That is why not a single US primary bond auction has ever been undersubscribed. 🫢 Steve just uploaded a video walking through this step by step in Ravel(c) with double entry bookkeeping tables. He shows exactly why the people panicking about bond market collapse are confusing secondary market trading with primary market auctions, two completely different things. Watch it here : https://www.youtube.com/watch?v=vyLnDop6Ux4&views

State governments bank at private banks. When they overspend, they borrow, and that debt compounds just like household debt. Federal governments bank at the central bank. When they spend more than they tax, they create fiat money that flows into the economy. Completely different mechanics. So why is California trying to fix a federal funding cut with a state tax? 🫤 Steve breaks this down in his latest video using Ravel©, showing what actually happens when you increase federal transfers instead. Spoiler: the state deficit vanishes and federal debt does NOT explode 🔥 He also walks through why the workers' share of GDP dropped from 64% to 58% in barely a decade, and what the monetary system has to do with it. Check it out here : https://www.youtube.com/watch?v=Ufn_Z2RqI_c&views

The GAO just told Congress that US debt is heading for 250% of GDP in 30 years. Sounds like a disaster waiting to happen, right? 🤔 Steve Keen digs into their model in Ravel© and finds something they got fundamentally wrong. They assume deficits take money away from the private sector. Turns out, it is the other way around. A deficit creates money in private bank accounts, and bonds go to banks first, not households. Fix that one detail and the exponential spiral they are warning about just does not happen What the GAO never even mentions is private debt. Velocity of money has dropped from 2.2 to 1.4 turns per year because households are buried in debt repayments. That is what is actually dragging the economy down, and it is what caused the 2008 crisis. Not government spending. Really clear breakdown, well worth your time so do check out the video 🔥