10d • General discussion
New video is up!
You know how everyone panics about government debt?
What if the thing that actually crashes economies is not government borrowing at all, but the debt sitting in your bank account, your mortgage, your credit card, your car loan?
In the textbook version, a government running a 1% deficit sees its debt ratio climb toward infinity.
Steve built that model in Ravel©. The curve just keeps rising. Looks terrifying. 🫤
Then he changed one detail. He moved the bonds from households to where they actually sit: with the banks.
Same equations. Same deficit. Same interest rate. The debt ratio stopped at 50% of GDP. No spiral. No crisis.
One wrong assumption in a textbook. 50 years of austerity built on top of it. This one is a must watch. 👇
1
1 comment
New video is up!
skool.com/stevekeen-free
Don't study mainstream economics. Learn 50+ years of Real Economics here. Download FREE Book Bundle (3 Books). No email required.
Leaderboard (30-day)
1
+2
2
+1
3
+1
Powered by