Economics Prof. Steve Keen on the "obsession with equilibrium" problem of neoclassical economics

 "they assumed you could change peoples' tastes" - to maintain their obsession with equilibrium since the 1960s - aka what's trending!! 

Summary of Steve Keen's basic principles of non-equilibrium economics:

Assets-Liability=Equity and Assets-Liability-Equity=Zero

Supply and Demand requires a third party, a Bank as the exchange between them.

Double Entry is looking at the feedbacks

NeoClassical economists have neither banks nor money in their models and thus don't have proper Double Entry accounting.

loans create deposits so the rate of change of loans equals the rate of change of deposits...

reserves, bonds and loans are three basic assets for banks.

deposits (liability) and equity on the other side of the equation.

reserves = government taxation minus spending minus bond sales that is the rate of change of reserves...

each row of the table equals zero by double entry book keeping as Assets-liability-equity=zero.

Bank Originated Money and Debt aka Bomd is the "real world" 

neoclassical economists claim debt is an asset of the household, not the banks.

the debt is still a liability of the firms doing the borrowing from the banks (not the households).

so this understands the private sector....

Loanable funds can't explain "demand deposits."

the money multiplier model can't explain money creation unless all loans are in cash.

the government actually creates money when it runs a deficit...A deficit is not a bug of the system. A deficit is a feature of the system.

We want to stop things that reduce government money creation and that includes secondary bond sales by the banks to the non-banks, financial institutions, wealthy individuals...