{"id":27851,"date":"2019-07-29T16:12:32","date_gmt":"2019-07-29T20:12:32","guid":{"rendered":"https:\/\/ssgreenberg.name\/PoliticsBlog\/?p=27851"},"modified":"2019-07-29T16:12:32","modified_gmt":"2019-07-29T20:12:32","slug":"the-coming-savings-writedowns","status":"publish","type":"post","link":"https:\/\/ssgreenberg.name\/PoliticsBlog\/2019\/07\/29\/the-coming-savings-writedowns\/","title":{"rendered":"The Coming Savings Writedowns"},"content":{"rendered":"<p><em>Counter Punch <\/em>has the Michael Hudson article <a href=\"https:\/\/www.counterpunch.org\/2019\/07\/29\/the-coming-savings-writedowns\/\" rel=\"noopener noreferrer\" target=\"_blank\">The Coming Savings Writedowns<\/a>.<\/p>\n<blockquote><p>\nDebts that can\u2019t be paid, won\u2019t be. That point inevitably arrives on the liabilities side of the economy\u2019s balance sheet.<\/p>\n<p>But what of the asset side? One person\u2019s debt is a creditor\u2019s claim for payment. This is defined as \u201csavings,\u201d even though banks simply create credit endogenously on their own computers without needing any prior savings. When debts can\u2019t be paid and debtors default, what happens to these creditors?\n<\/p><\/blockquote>\n<p>I am a follower of Michael Hudson. I have read part of his book &#8220;<a href=\"https:\/\/ssgreenberg.name\/PoliticsBlog\/2019\/04\/20\/and-forgive-them-their-debts\/\" rel=\"noopener noreferrer\" target=\"_blank\">&#8230; and forgive them their debts<\/a>&#8220;. This might be from the part I haven&#8217;t read yet. I understood the write-down of debts, but somehow the write-down of savings as a necessity had escaped me.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Counter Punch has the Michael Hudson article The Coming Savings Writedowns. Debts that can\u2019t be paid, won\u2019t be. That point inevitably arrives on the liabilities side of the economy\u2019s balance sheet. But what of the asset side? One person\u2019s debt is a creditor\u2019s claim for payment. This is defined as \u201csavings,\u201d even though banks simply [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[166],"tags":[],"class_list":{"0":"post-27851","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-stevegsposts","7":"czr-hentry"},"_links":{"self":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/27851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/comments?post=27851"}],"version-history":[{"count":1,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/27851\/revisions"}],"predecessor-version":[{"id":27852,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/27851\/revisions\/27852"}],"wp:attachment":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/media?parent=27851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/categories?post=27851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/tags?post=27851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}