The Many Collapses of Keynesianism

Discussion in 'Economy' started by Kevin_Kennedy, Aug 27, 2011.

  1. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    The Many Collapses of Keynesianism by Llewellyn H. Rockwell, Jr.
     
  2. Brutus
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    Brutus Senior Member

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    as a conservative I generally agree with you, but the government bailouts did prevent an instant Depression. For that we should all be very thankful, but at the same time we must recognise it was liberal government that bubbled the market to the point where it burst and needed a bailout. The economy is now not that bad. Unemployment is only at European levels.

    From here on out a lot of fine tuning is necessary and I certainly agree the free market is the only possible option for that.
     
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  3. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    The only thing the bailouts prevented was the necessary correction. As far as a depression goes look at real unemployment figures which are conservatively in the teens. You also can't blame "liberal government," because I certainly don't recall conservatives doing anything about the Federal Reserve keeping interest rates low. Also, the bubble burst during the Bush administration.
     
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  4. mudwhistle
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    mudwhistle Diamond Member

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    Prevent a Depression if it had been legit.

    Problem was the crisis was faked. Hedgefunders caused the crisis. The Recession ended within months after it hit.

    So what does Obama do? He keeps talking and threatening coming tax-increases. He starts monkeying with the money supply through quantitative easing. He bails out foreign banks and invests in foreign oil producers. He sends trillions out of the country. Then he institutes new green regulations through the back door going around Congress. He sends out conflicting signals causing uncertainty. His Administration sounds like they've literally lost their collective minds.

    Regardless of who he chooses to blame his weak hand at the tiller is the cause of this weak economy more then anything else. A lack of trust and confidence is killing this economy.
     
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  5. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    Well it's the Fed that caused the recession, but it's true that Obama's prolonged it with his policies.
     
  6. Brutus
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    Brutus Senior Member

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    that would be like calling the beginning of the Great Depression a necessary correction. We all know now that it is necessary to prevent bank runs and panics the lead to Great Depressions.


    Actually power is greatly divided in America. The Fed and Fanny were largely independent and liberal and were the cause of this great recession. Experts on both sides now agree on this, I'm afraid.
     
  7. Brutus
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    Brutus Senior Member

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    the Fed with a huge assist from Fanny Freddie who bought the mortgages and so gave the banks even more to lend.

    Its more accurate to simply say liberalism caused the recession.
     
  8. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    The Great Depression was only great because Hoover and FDR didn't allow the correction to happen. The same reason that this recession is "great." Panics, depressions, recessions, or whatever you want to call them are all examples of the market trying to correct itself which is absolutely necessary.

    Fannie and Freddie were only able to do what they did because of the Fed. I'm not too worried about what the so-called "experts" say, because those same experts weren't able to predict the recession in the first place. Why should we listen to them now? As for calling them "liberal," that's simple partisan hackery.
     
  9. expat_panama
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    expat_panama Silver Member

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    This is true, and the hope is that more and more people will come to accept those realities.
    What, for keeping interest rates low because inflation and unemployment was were under control? We can also blame what Fannie and Freddie did on the fact that the sun made life possible on the earth.
     
  10. mudwhistle
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    mudwhistle Diamond Member

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    And Obama has his people in key positions in the Fed now as well as Freddie and Fannie.
     

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