The Many Collapses of Keynesianism

Kevin_Kennedy

Defend Liberty
Aug 27, 2008
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It should be obvious to everyone but the most dedicated adherent of Keynesianism that the stimulus did not accomplish its end. The combination of outright spending by Congress, the desperate schemes to reflate the housing market, the attempt to transfuse bleeding firms with other people’s money, and the creation of trillions in artificial money, has not done a thing to lift the US economy.

Actually, the reverse has been true. All these efforts have prevented the adjustment of economic forces to the post-boom world. And all the resources that the stimulus consumed were extracted from the private sector, for we must always remember that government has no resources of its own. Everything it does must come from the hides of private producers and the citizenry in general, in the future if not immediately.

The Many Collapses of Keynesianism by Llewellyn H. Rockwell, Jr.
 
the attempt to transfuse bleeding firms with other people’s money, and the creation of trillions in artificial money, has not done a thing to lift the US economy.

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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the attempt to transfuse bleeding firms with other people’s money, and the creation of trillions in artificial money, has not done a thing to lift the US economy.

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.

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.
 
the attempt to transfuse bleeding firms with other people’s money, and the creation of trillions in artificial money, has not done a thing to lift the US economy.

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.

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.
 
the attempt to transfuse bleeding firms with other people’s money, and the creation of trillions in artificial money, has not done a thing to lift the US economy.

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.

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.

Well it's the Fed that caused the recession, but it's true that Obama's prolonged it with his policies.
 
The only thing the bailouts prevented was the necessary correction.

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.


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.

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

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.
 
The only thing the bailouts prevented was the necessary correction.

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.


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.

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.

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.
 
...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...
This is true, and the hope is that more and more people will come to accept those realities.
...Fannie and Freddie were only able to do what they did because of the Fed...
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.
 
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.

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.

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

And Obama has his people in key positions in the Fed now as well as Freddie and Fannie.
 
I'm pretty sure Republicans think this has something to do with Kenya.
 
The core issue is that 1) we have a monetary and banking system that is socialistic and therefore used by the power elite to enrich themselves at our expense, and 2) the policy elite clings to the Keynesian pretense that government is capable of waging a war against market forces. That, and the fact that Keynesianism empowers the elite, is why this pathetic and dangerous history keeps repeating itself.

I find it somewhat amusing that this guy is calling damned near 40 years of SUPPLY SIDE ECONOMIC POLICIES Keynesian economic policies.

Aside from that, this statement

1) we have a monetary and banking system that is socialistic and therefore used by the power elite to enrich themselves at our expense

is truer than true.

That's why both Bush II and OBAMA bailed out the BANSTERS, but NOT their victims, folks.

Socialism for the WEATHY is NOT Keynesian economic policy.

How can he possibly not know that?
 
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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...
This is true, and the hope is that more and more people will come to accept those realities.
...Fannie and Freddie were only able to do what they did because of the Fed...
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.

Those things appeared to be under control because we were in the boom phase. If credit hadn't been so cheap then banks couldn't have made all of those risky loans that they made, and who made credit cheap? The Fed. The market should be setting interest rates, not a central planner.
 
The core issue is that 1) we have a monetary and banking system that is socialistic and therefore used by the power elite to enrich themselves at our expense, and 2) the policy elite clings to the Keynesian pretense that government is capable of waging a war against market forces. That, and the fact that Keynesianism empowers the elite, is why this pathetic and dangerous history keeps repeating itself.

I find it somewhat amusing that this guy is calling damned near 40 years of SUPPLY SIDE ECONOMIC POLICIES Keynesian economic policies.

Aside from that, this statement

1) we have a monetary and banking system that is socialistic and therefore used by the power elite to enrich themselves at our expense

is truer than true.

That's why both Bush II and OBAMA bailed out the BANSTERS, but NOT their victims, folks.

Socialism for the WEATHY is NOT Keynesian economic policy.

How can he possibly not know that?

Supply-side economics is essentially Keynesian economics.
 
I love how people hide behind benign sounding jargon like "market corrections"


:rofl:
 
The only thing the bailouts prevented was the necessary correction.

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.


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.

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.

"Necessary"? Why is it necessary for my tax dollars to bail out banks and their customers, who put faith in a banking system where only 10% of deposits are in reserve?

90% of your money is being played with by banks, but we're supposed to bail everyone out because of a recession that causes people to want to claim their money?

I don't get the logic. I don't support a banking system where my tax dollars are assumed to be your safety net when the ponzi scheme rears its ugly head.
 
"Necessary"? Why is it necessary for my tax dollars to bail out banks and their customers,

simple, so your country wont have a great depression!!



who put faith in a banking system where only 10% of deposits are in reserve?

who knows what % should be held in reserve??? Do you know????

90% of your money is being played with by banks, but we're supposed to bail everyone out because of a recession that causes people to want to claim their money?

well we could have a law requiring 100% reserves, for example, but it would not change a thing. Banks could simply borrow from the Fed or make few or no loans in which case we'd probably have no economic growth. Not so simple is it?

I don't get the logic. I don't support a banking system where my tax dollars are assumed to be your safety net when the ponzi scheme rears its ugly head.

ponzi scheme is of course the wrong term since our scheme has produced the highest standard of living in human history. A gold standard has its own problems, and of course there a million ways to run one too.
 
the attempt to transfuse bleeding firms with other people’s money, and the creation of trillions in artificial money, has not done a thing to lift the US economy.

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.

Only liberals? Why how myopic.
 

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