There is no free in liberty.


Wednesday, June 13, 2012

Keynesianism Compressed...


Normally government can hide the inefficiency of borrowing from the future to fund its Keynesian efforts due to the fact that the cost of doing so is hidden in an ill defined future.  That dance is becoming increasingly difficult in Europe.

For example:

Italy's part in the Spanish bailout is 20%.  Italy borrows the money it will lend to Spain at a rate of 7% but  then lends it to Spain at 3%.

This is Keynesianism  no longer able to hide it's costs in the murkyness of the future. This is Keynesianism compressed.


Note that Farage was applauded at the end of his statement.  That  is heartening in itself.

Keynes has failed repeatedly but even looking backward in time that failure can be difficult to discern amid the complexities of history.

Dan Mitchell:


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