georgephillip
Diamond Member
Yes, of course the crisis is nearing. Capitalism may be destabilizing, but let us look at the country that is at the top of today's bubble. Well damn, it's the communist China. Our stock market comes only second...
There is no such thing as a perfect system. Minsky having Marxists influence somehow managed to forget that and only criticized capitalism and corporatism. I have to say I am quite amused at how these Marxist use the word capitalism to refer to almost anything and everything. They still got many things right... for example neoclassical economists such as Krugman always being wrong, every time. However, such trivialities are obvious for anyone with a brain.Minsky and many others acknowledged the fundamental contradiction of capitalism which pits workers against capitalists in a never-ending struggle over wages. Workers who can't afford to buy products they help produce are left with only one option:There is no such thing as a perfect system. Minsky having Marxists influence somehow managed to forget that and only criticized capitalism and corporatism.
https://seekingalpha.com/article/4196931-state-american-debt-slaves-q2-2018
"Hyman Minsky's theories about debt accumulation received revived attention in the media during the subprime mortgage crisis of the first decade of this century.
"The New Yorker has labelled it 'the Minsky Moment'.[10][11]
"Minsky argued that a key mechanism that pushes an economy towards a crisis is the accumulation of debt by the non-government sector.
"He identified three types of borrowers that contribute to the accumulation of insolvent debt: hedge borrowers, speculative borrowers, and Ponzi borrowers."
Hyman Minsky - Wikipedia
This is dumb, the debt has declined relatively since the heights of 2008.
Get to the socialist Venezuela, wages are booming there.Consumer (private) debt has not declined since 2008:This is dumb, the debt has declined relatively since the heights of 2008.
https://seekingalpha.com/article/4196931-state-american-debt-slaves-q2-2018
"Total consumer credit - or less soothingly, consumer debt - rose 4.8% in the second quarter from a year earlier, or by $176 billion, to $3.87 trillion (not seasonally adjusted), the highest ever, according to the Federal Reserve.
"This includes credit card debt, auto loans, and student loans, but not mortgage-related debt.
"Given how passionate Americans normally are in spending money they don't have, that 4.8% increase is moderate: In 2011, increases exceeded 11%."
Private debt relative to GDP has declined.
Go preach your Marxism elsewhere.
How has inflation grown relative to GDP over that time period?Private debt relative to GDP has declined.
Go preach your Marxism elsewhere
https://seekingalpha.com/article/4196931-state-american-debt-slaves-q2-2018
"To put this 4.8% increase (in consumer debt) in perspective: In Q2, the economy as measured by real GDP grew 2.8% year over year, and inflation as measured by CPI increased 2.7%.
"In other words, American consumers, among the hardiest creatures out there, have pulled through once again, holding up the economy with borrowed money.
"Over the 10 years since Q2 2008, consumer debt has surged 48%.
"Over the same period, the consumer price index has increased 15.1% and the economy has grown 17.8%."