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The Keynesian economics experment is over

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  • The Keynesian economics experment is over

    It failed!

    Whats next?

    Mike

  • #2
    Re: The Keynesian economics experment is over

    The next few weeks will be the make-or-break period for the Keynsian economics experiment. I think the experiment has proved to be a failure which means that the economic depression will have a double-dip.

    The interesting events of the past few weeks is that China is beginning to sell U.S. Treasury debt. So, Bernanke is now forced to quantitatively-ease in order to absorb the pressure on the bond market. This should force inflation way up.

    Here in Canada which is following the same Keynsian economic policies laid-down by Bernanke, there are now huge increases appearing in food prices. The increases are coming out-of-the-blue, from no-where. Even Wal-Mart is marking-up its grocery prices, big-time.

    A double-dip in the economic depression would be bad news for stock investments. I don't even want to think about what could happen next, over the next several months.

    Probably we will rally higher for a few more weeks or even longer. That is what happened in the 1929 crash; a rally occurred from 1930 to about 1932.

    The current economic crash looks worse than the 1930s, so this could be horrid, especially in the U.S. But some kind of double-dip is probably in order.

    Long-run, I think the world is heading back to the gold standard. World currencies will be anchored with something, either a basket of commodities or else gold, or both. But first, we have to go through economic hell until the public worldwide is in revolt.

    Comment


    • #3
      Re: The Keynesian economics experment is over

      Are you guys being kind of generous to Keynes? He was seduced by numbers and maths formulae, - par for the time! Funny how Economics is still mired in Quantitative Determinism. Keynes was wrong - and his acolytes and disciples are naked.

      Think. The development of technology and the consumption of liquid fossil fuels are a pair of Siamese twins. The deployment of sophisticated manufacturing capacity and higher levels of technical education were restricted to 'western economies' for a long time. But not now. Is it any wonder that our so-called economic gurus are also 'western'? And these bozos developed an economic Model-in-Use derived from 'their' analyses. This model, Permagrowth, is now on life-support.

      Darwin went on world tour, observed things, then wrote. Our contemporary economists conjour up some piece of mathematical gobbeldy-gook, then pronounce it as 'fact', carefully ignoring reality!

      The east can manufacture all that we, and they, need. They just have population, food and water problems. Interesting times ahead. Care to imagine the situation when total global production of fossil-fuel liquids dips below demand?

      Brian P

      Comment


      • #4
        Re: The Keynesian economics experment is over

        Originally posted by Mega View Post
        It failed!

        Whats next?

        Mike
        NeoSurfdom, hellooooooww! Is your internet thingy plugged in? Do you read what you post?

        Man, it's like you post all this stuff here but never take the time to read any CONTENT on this site!

        Hudson spells it out in the "NEW ROAD TO SURFDOM"

        If you have any doubts, just check out the POLICY ACTIONS of the Obama adminstration.

        Debt stays in place, people earn a substance wage, and have no assets = SURFDOM!

        Comment


        • #5
          Re: The Keynesian economics experment is over

          I think we are now entering a period of "Economic Existentialism"...
          mike

          Comment


          • #6
            Re: The Keynesian economics experment is over

            Originally posted by Mega View Post
            I think we are now entering a period of "Economic Existentialism"...
            mike
            I think we are entering the period were the masses go "HOLY ******* SHIT" followed shortly thereafter by societial unrest, followed by "???" which equals something worse but as of yet indeterminate.

            BTW mega, nothing wrong with being far sighted (as you are) that ass pain is waiting for the rest of the dipshits to catch up.

            Comment


            • #7
              Re: The Keynesian economics experment is over

              The headlines on the front page of The Vancouver Sun newspaper to-day, "Grocery Prices Now Soaring" and in the sub-headline on the front page: "Fresh fruits and vegetables soar; people will have to do-without."

              I want Bernanke OUT. I want Carney OUT of the Bank of Canada. Kick-out Geithner from the U.S. Treasury. Get rid of Gordon Brown and his bunch in Britain. I want the professors in economics departments in major universities confronted with this reality: We can't eat.

              I drained my money out of my money market account with my brokerage firm here in Canada. My garage has been built, and my new Rocky and Bullwinkle jumbo cedar-shake house roof comes next..... I have better uses for money than to give it to banks and Wall Street now. Even at higher interest rates, I would flip them the bird with my middle-finger.

              When savers are grossly abused, as they are now, the savers will abandon the banks, the inflation will come back strong, and interest rates will ultimately soar.

              Comment


              • #8
                Re: The Keynesian economics experment is over

                Originally posted by Starving Steve View Post
                The headlines on the front page of The Vancouver Sun newspaper to-day, "Grocery Prices Now Soaring" and in the sub-headline on the front page: "Fresh fruits and vegetables soar; people will have to do-without."
                The Loonie is down about 25% in value against it's basket of currencies. That's not helping.

                Comment


                • #9
                  Re: The Keynesian economics experment is over

                  It has failed but there is zero real world understanding of that - at any level.
                  We may be years or possibly decades away from seeing Keynesian thought out of favor.
                  The malls are still packed, Starbucks still has lines, the freeways are still clogged, golf courses are jammed from sun up to sun down. Everyone still has the swagger of the newly rich.
                  The only visible indication of trouble is the odd sight of huge stores like Circuit City and Mervyns standing empty in prime retail space.
                  Most people still look at me crazy if I say there are big problems on the way. In 2007 I understood why I seemed crazy to most people - but now?!
                  Everyone knows "for a fact" the bottom has been reached.
                  It beggars the mind what it will take for people to care.

                  Comment


                  • #10
                    Re: The Keynesian economics experment is over

                    Originally posted by santafe2 View Post
                    The Loonie is down about 25% in value against it's basket of currencies. That's not helping.
                    The Loonie is down when it should be up--- because in Keynsian economics, down is competitive and therefore down means up. And a strong loonie is up, therefore that loonie is weak. Therefore we want to be poor to be rich...... Oh yes, this is Keynsian economics.

                    And the Keynsian stinkers at the Bank of Canada, thanks to Pierre Trudeau years ago, sold much of Canada's gold. They pinned the loonie onto the U.S. dollar. Pierre Trudeau was an early version of Gordon Brown, only he was on this side of the Atlantic.

                    I want economics professors heckled in universities. This worldwide depression is a disaster, and inflation is going to add the final touches to the disaster: We won't be able to eat.

                    Everyone even remotely connected with current governments should be booted-OUT. Obama goes out next.

                    Imagine billions for AIG and then multi-million dollar rewards to those who ran AIG into the ground! Kick-backs to Goldman Sachs! AIG and Bernanke and Geithner made for Obama's Vietnam War. The LBJ of our time has been Obama.

                    Comment


                    • #11
                      Re: The Keynesian economics experment is over

                      Originally posted by Mega View Post
                      It failed!

                      Whats next?

                      Mike
                      A pint of Cains Bitter? ;)

                      Comment


                      • #12
                        Re: The Keynesian economics experment is over

                        Originally posted by Mega View Post
                        It failed!

                        Whats next?

                        Mike
                        More of the same.
                        It's Economics vs Thermodynamics. Thermodynamics wins.

                        Comment


                        • #13
                          Re: The Keynesian economics experment is over

                          Originally posted by jtabeb View Post
                          NeoSurfdom, hellooooooww! Is your internet thingy plugged in? Do you read what you post?

                          Man, it's like you post all this stuff here but never take the time to read any CONTENT on this site!

                          Hudson spells it out in the "NEW ROAD TO SURFDOM"

                          If you have any doubts, just check out the POLICY ACTIONS of the Obama adminstration.

                          Debt stays in place, people earn a substance wage, and have no assets = SURFDOM!
                          search for 'debt surf' turned this up...



                          Comment


                          • #14
                            Re: The Keynesian economics experment is over

                            Originally posted by Mega View Post
                            It failed!

                            Whats next?

                            Mike
                            It ain't over till they say its over

                            at which point I am sure we'll be told we know things are worse now then before and the country has a burgeoning GDP / debt ratio and we have to raise taxes but how could we have known it was the economic consensus at the time that keynesism was the policy we should have followed and we could not just do nothing, nobody could have known, as for the billions / trillions we gave the banks, we can not get the money back now and doing so would further exasperate the situation in the economy and anyway we are contractually and legally bound to the debt now.

                            Check mate
                            "that each simple substance has relations which express all the others"

                            Comment


                            • #15
                              Re: The Keynesian economics experment is over

                              Originally posted by Starving Steve View Post
                              The Loonie is down when it should be up--- because in Keynsian economics, down is competitive and therefore down means up. And a strong loonie is up, therefore that loonie is weak. Therefore we want to be poor to be rich...... Oh yes, this is Keynsian economics.

                              And the Keynsian stinkers at the Bank of Canada, thanks to Pierre Trudeau years ago, sold much of Canada's gold. They pinned the loonie onto the U.S. dollar. Pierre Trudeau was an early version of Gordon Brown, only he was on this side of the Atlantic.

                              I want economics professors heckled in universities. This worldwide depression is a disaster, and inflation is going to add the final touches to the disaster: We won't be able to eat.

                              Everyone even remotely connected with current governments should be booted-OUT. Obama goes out next.

                              Imagine billions for AIG and then multi-million dollar rewards to those who ran AIG into the ground! Kick-backs to Goldman Sachs! AIG and Bernanke and Geithner made for Obama's Vietnam War. The LBJ of our time has been Obama.
                              My first real introduction to technical analysis of price charts was from Ian McAvity - one very smart Canadian - and a pretty good guy on top of that. Back then he referred to Trudeau as "Pierre Elliot Trotsky".

                              Yes Steve, you are correct. As I told you in my long post on the history of the Fed, the Bimetalist Dollar, LBJ and the "Great Society", the so-called "fiscally responsible" Republicans and the whole airsick bag of the American political establisment (the RepubliCrats) there is NO HOPE without a viable Third Party.

                              Comment

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