Obama and Keynes: The Perfect Pair to Ruin the Economy

July 22, 2011 04:47

A big devaluation is coming; people will probably die as a result. They’ll starve to death in the dark, unable to find work or live on the constantly dwindling benefits the government continues to offer with less and less enthusiasm.

From The Daily Bell


What are the results of modern Keynesianism? Well, Fed Chairman Ben Bernanke‘s been trying hard to make Keynes’ theories work without much success. The whole idea that government can administer an economy has kind of fallen by the wayside. What’s left behind are smoldering ruins. The US has some US$200 trillion in obligations and not a chance in hell of paying it out.

Anyway, Keynes’ big idea – one that took several thousand pages to write and to prove (and even then he was wrong) was that government could save money for the bad times and then ameliorate business cycle downturns by spending it to cushion the downturn. It was actually an idea built on the Austrian concept of the business cycle; only it gave the State and central banking a role to play.

In actuality, of course, regulatory democracies NEVER ever “save.” Governments are run by people who are anxious to loot as much money as they can before their terms run dry. Thus, there is no money for the “rainy day” that Keynes was supposedly focused on.

Instead of spending money already saved, governments using Keynesian methodologies turn the printing presses on. This is what Bernanke is doing now, and has done twice. A third time may boost the price of gold and silver in to the stratosphere, while bankrupting elderly middle-class Americans who depend on the interest of their savings to live.


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