Uploaded August 2026 | Updated September 2026, 3 weeks ago
Join the Rebel Economists: skool.com/stevekeen
Analyze data effortlessly: ravelation.net (use marketing.ravelation.net until the main site goes live)
Get the unvarnished economic truth: profstevekeen.substack.com
Support the fight against neoclassical economics: patreon.com/profstevekeen
Understand money from the ground up: amazon.com/Money-Macroeconomics-First-Principles-Engineers/dp/B0FNJK2F4C
You sat in a first year economics lecture, failed the exam, and assumed that you were the problem. But what if failing an economics exam was actually a mark of intelligence? What if the people teaching the course--your lecturers--were the ones who were wrong about the economy?
I wrote Debunking Economics to explain why textbook economics is full of fallacies. But I knew that showing its approach was wrong wasn't enough. An alternative was needed as well: a new paradigm.
I used that paradigm to warn that a Global Financial Crisis was coming, when mainstream economists were congratulating themselves on causing "The Great Moderation", which they thought would go on forever. They thought 2008 was going to be a great year. I expected the worst recession since The Great Depression. I was right and they were wrong.
One key reason why they were wrong is that they ignore private debt. In their models of banking, lending simply transfers spending power from one person to another. In the real world, bank loans create money, and this causes the booms and busts of capitalism.
In this video, I show, using my proprietary "Ravel" software, that in their pretend model of banking, what banks do has no impact on the economy. Then I flip the switch to reality, and show that what banks do runs the economy.
So intelligent students who fail economics fail because they can't stomach a fantasy model dressed up with intimidating-looking but ultimately childish mathematics.
TIMESTAMPS
0:00 Why Smart People Fail Economics: The Real Reason
2:14 Banks Create Money: How Credit Drives Demand
3:19 The Textbook Myth: Larry, Patty and the Intermediary Story
6:03 Rebuilding the Model: What Credit Does in the Real World
7:46 Predicting the Crash: Bernanke, the Data and the Denial
Business inquiries: profstevekeen@gmail.com
Sign up to my online course: skool.com/stevekeen/about
---
Join the Rebel Economists: skool.com/stevekeen
Analyze data effortlessly: ravelation.net (use marketing.ravelation.net until the main site goes live)
Get the unvarnished economic truth: profstevekeen.substack.com
Support the fight against neoclassical economics: patreon.com/profstevekeen
Understand money from the ground up: amazon.com/Money-Macroeconomics-First-Principles-Engineers/dp/B0FNJK2F4C
You sat in a first year economics lecture, failed the exam, and assumed that you were the problem. But what if failing an economics exam was actually a mark of intelligence? What if the people teaching the course--your lecturers--were the ones who were wrong about the economy?
I wrote Debunking Economics to explain why textbook economics is full of fallacies. But I knew that showing its approach was wrong wasn't enough. An alternative was needed as well: a new paradigm.
I used that paradigm to warn that a Global Financial Crisis was coming, when mainstream economists were congratulating themselves on causing "The Great Moderation", which they thought would go on forever. They thought 2008 was going to be a great year. I expected the worst recession since The Great Depression. I was right and they were wrong.
One key reason why they were wrong is that they ignore private debt. In their models of banking, lending simply transfers spending power from one person to another. In the real world, bank loans create money, and this causes the booms and busts of capitalism.
In this video, I show, using my proprietary "Ravel" software, that in their pretend model of banking, what banks do has no impact on the economy. Then I flip the switch to reality, and show that what banks do runs the economy.
So intelligent students who fail economics fail because they can't stomach a fantasy model dressed up with intimidating-looking but ultimately childish mathematics.
TIMESTAMPS
0:00 Why Smart People Fail Economics: The Real Reason
2:14 Banks Create Money: How Credit Drives Demand
3:19 The Textbook Myth: Larry, Patty and the Intermediary Story
6:03 Rebuilding the Model: What Credit Does in the Real World
7:46 Predicting the Crash: Bernanke, the Data and the Denial
Business inquiries: profstevekeen@gmail.com
Sign up to my online course: skool.com/stevekeen/about
---
