Steve Keen
What You Will Learn
00:00
How to Avoid the Crash of the Economy
You can't actually say what the maximum level of debt a country can carry is. The maximum any country has carried a household debt, for example, is roughly 140% of GDP. If you drive a time where you get like an S-shaped curve, flat takes off levels out, that's debt. As you start to stabilize towards the maximumlevel of debt, then that demand disappears. Now if your economy is being relying upon demand from income to an over goods and services, plus credit and suddenly credit goes zero, then the economy crashes on its own. So just keep levering up and going further in a debt or you crash out of it.
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