Thinking About Debt Deflation

From The Aleph Blog:

Amid my recent difficulties (sickness, loss of my main computer, difficulties updating my blog software), I have been musing about the health of our economy going forward. Before I give my opinion, I want to share a range of views that I think are worth reading:

• China Institute Proposes Weaker Yuan to Boost Growth
• The Great Depression – Just the Facts, Ma’am
• Recession? No, It’s a D-process, and It Will Be Long
• The Chart That Changed the World — Wrong?
• More Than Two Aspirin
• Steve Keen’s Debtwatch
• No alternative to inflation
• How Government Created the Financial Crisis
• Hire Irving Fisher!

I admire the efforts that many are making in moving back to first principles. We see analyses from Classical, Austrian, Post-Keynesian, Minsky (nonlinear dynamics), and other perspectives.

My view remains that depressions result from a buildup of too much debt, including debt complexity....MORE