The Keynesian face of government has become unpopular, Obama's current "jobs bill" notwithstanding, but the soul of Western government remains Keynesian.
Denninger and Keiser discuss that Keynesian soul via its corporal circulatory system based on the abuse of capital formation:
No government knows better how to invest savings than does the individual who initially gathered that capital and it is for that reason government attempts at shifting capital from savers via currency devaluation to spend $450 billion on a fresh jobs bill or on capital cronyism deals like that with Solyndra will always fail. With capital formation the fertilizer of private economies, it should come as no surprise that when government diminishes capital and punish the efforts of savers that economies suffer and find themselves mired in a Keynesian Depression.
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