Why we might already B in a decade of depression

RED. no. 0, Dec. 18, 2008 (ITALIAN, English abstract)

We started ths blog last February, basically for civic-political reasons: we HAD to do something, while a catastrophic  social crisis was enrolling; and economists, media, power were just lying to everybody. Are we living a Pinocchio society? Just one vox clamans in the desert, one truth teller: the best Bocconi graduate, Prof. Nouriel Roubini of New York University’s Stern School of Business, founder of RGE monitor – the MUST  in web2.0 macroeconomics.

Now we are on the verge of answering the blog name dilemma, the MOTHER OF ALL FAQs, since from the August 2007 subcrime bubble burst: will it B

just deep recession, or depression?

The major States and their CBs have a few months left to answer such a question, but we know already why  and what: they  will not choose to start IMMEDIATELY a historical, massive RED. = REDistribution of capacitations (Amartya Sen) and resources, because the political equilibria between the Rentiers élites in power, and the oppressed masses do not allow them to go for it.

Therefore RED. will happen in any case (there is no choice), but only with strong social movements, and possibly  many wars around the globe (although we highly esteem the couple Barack-Hillary in this regard, and expect a lot from both).

RED. at a too much slow pace, in the


The same happened with Roosevelt, History repeats. The last Krugman book is about that. As the Cambridge Keynesian school (Kaldor, Pasinetti, Robinson) explains, capitalism has only one way in order to try hard to be sustainable, although not getting it: the State keeps redistributing more and more to the ones who consume, as a counterbalance to monopoly markets and class oppression doing the other way. Now, the Reaganite New Gilded Age has done exactly  the opposite:

a) the State has massively occupied the scene, it has never  retired from the economy. The Reaganite State, evaporated forever  in March 2008 with the Bear Stern bailout, has been  invasive in the economy and society as never before  in Modern History (on this we dissent from the analysis of Loretta Napoleoni, but also of everbody else taking for granted free-marketeer bulshit: what the Pinocchios say).

b) It just started working 100% at the immediate service of  Rentiers, with no foresightedness about  the Future: enjoy the bubble and the Present, fuck off tomorrow and  the next generation (Reaganite Edonism values).

c) pushing of course, one after another all the world economies in a dramatic capital over-accumulation corner from a longrun lack of effective demand, due to counter-distribution. Europe had already cornered itself in an artificially crafted 1970s Depression from restrivtive monetary policies and never recovered, since it carried on with the same catastrophic policies, on and on. As you know already  from our subcrime analysis pdf or other sources, in the US not so much the 1%, but the 1/1000 of population has reaped the benefits of 2 decades of counter-distribution.

RED. no. 0, Dec. 18, 2008 (ITALIAN, English abstract)

On these key issues, here’s the resume’ of this 9p. document, 1st in the  RED. series.

2009-11: the catastrophic, cumulative global stag-deflation
2008-20?: 3rd Great Depression, like in the 1880s & 1930s
In this draft document:
– we resume some basic conclusion, from our blog analysis on the stag-deflation consequences of 2 decades of over-accumulation Hystheresis, from income counter-distribution
– we briefly motivate not only the basic reasons for RED. policies. More: it’s a one way only, objective forces and the Nash of subjective conflicts bring  there. But such a political process is now very slow, therefore we are already in a depression decade.
In the appendix, a comment to global shares markets trends.


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