@Mannfm11: The problem with Fisher, if Dr. Hunt is representing him correctly, is the same problem with all of them, including Keynes and Friedman in their respective arguments for fiscal and monetary "stimulus." Namely, that downturns can be prevented or "contained" by prevention, or whatever.

Quote:

Fisher, on the other hand, is saying something entirely different. He’s saying that the insufficiency of aggregate demand is a symptom of excessive indebtedness and what you have to do to contain a major debt depression event — such as the aftermath of 1873, the aftermath of 1929, the aftermath of 2008 — is you have to prevent it ahead of time. You have to prevent the buildup of debt.

A capitalist economy can no more prevent the buildup of debt than a human being can prevent the buildup of years. This is what no one that I know of, outside of Karl, has recognized.

http://market-ticker.org/akcs-www?single....

Mannfm wrote..

It is clear they can bail this out with government bonds, but are the bonds really nothing more than a draw on the cash already present?

OF COURSE they are, of course. The guy with a gun to your head is demanding You pay this debt monstrosity either through taxes or inflation. It can be no other way. The little guy who does all the dirty work gets ****ed. That's why there's no "recovery," and won't be. He can either continue to participate out of hope, fear, or just plain ignorance, or he can give the finger to this BS. More folks are doing the latter these days; that's good, but this can go on for a really long time before enough people figure out that our "leaders" and their "economy" are nothing more than a circle jerk of the biggest frauds in human history.