Keynes - Clashing With Reality bit Still Standing...

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Peter Ferrara

The now once again thoroughly discredited, failed Keynesian economics survives intellectually only because it provides cover to the politicians, and to their leftist media cheerleaders, to do what they want to do, which is spend like spoiled children, and not pay for it. But it is long past time for the rest of us to recognize Keynesian doctrine for the now outright intellectual corruption it is, and to hold the Keynesians personally accountable for it.

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Worst of all are the most ardent, hysterical and blind media advocates of Keynesianism, like Paul Krugman, who after Obama and his runaway all time government spending spree has taken America to the brink of fiscal insolvency, like a drunken back seat driver belches us on to accelerate even faster on our current course into the inevitable crash and burn.

That needs to be recognized as a form of personal lunacy, for which the only real solution appears to be the restoration of the laws providing for involuntary commitment.

In other words we traded real debt for no lasting gain. Keynes failed, FDR failed. The nation suffered.
We saw it again with the conclusion of WWII which was followed not by boom but by bust in the recession of 1945.

And in the most glaring example there is Japan which continuous the feel good Keynesian stimulus that has resulted not in boom, but a full generation of economic stagnancy. In Japan we see firsthand the real loss that was transferred to the unborn when Japanese leaders chose Keynesian solutions.

Those unborn are now young adults enduring the fiscal abuse metered out by elders who asked themselves:

Why not leave our children and grandchildren with debt? Why do they get to be the special generation with no debt?

and chose poorly.








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We are not Just in a Depression, We are in a Keynesian Depression...

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Depressions are created by Keynesian interventions as such interventions interfere with the market finding equilibrium.  Bubbles are unable to deflate and prices become dependent on government pumping.  The market stalls.

It happened in 1937 after six years of Keynes.  It has happened in Japan,  No ir is happening again in the US.

Now there is ObamaTax....
 
Rep. Henry Waxman (D-CA):

“The economy has not recovered… I think it’s a depression.”

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Keynesianism Compressed...

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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.


Farage:


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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Graphing That BLS-BS... and America's Second Keynesian Great Depression...

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Notice how the unemployment rate has fallen parallel with the labor participation rate while the employment to population ratio has remained flat.

We are moving sideways in the same way the US did during the Great Depression.  In each depression (30's and 2008) we used massive injections of stimulus to forestall the economy's return to equilibrium because the return to appropriate pricing is painful.  This results in a broken market that can not heal or a Keynesian Depression.

Conservative Commune:

The NY Fed explains :

...In the most recent cycle, the employment-to-population ratio traces out an L shape, but the unemployment rate falls because the participation rate declines substantially (a much more gradual decline was expected by many given the aging of the baby boomers); in other words, a larger share of the population is out of the labor force rather than participating and being unemployed.

We’ve seen a lot of happy talk about how well the economy is doing now. Most of that comes from the media which has about as much of a grasp on the economy and how it works as does the current occupant of the White House.

A look at those four recessionary cycles gives context to the depth of the one we’re currently battling. If you look closely at the part of the chart depicting our current situation, you realize that while we’ve seemingly bottomed out, the employment-to-population ration is not rising. And that, of course, is because of the horrendous drop in the labor force participation. [...]

 Devastating...





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Great Myths of the Great Depression From the Youth of America...

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These videos focus on The Great Depression, so they do not touch on Japan's Lost Decade Lost Two Decades or the current Depression America is mired in, each of which have repeated the mistakes of The Great Depression thus lengthening our shared misery.

All three are Keynesian Depressions.







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Why Keynesianism is Wrong...

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It created the Great Depression, Japan's lost decade two decades, and now it is back in America.  We are living through America's Second Keynesian Depression...





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