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Keynesianism: The Road To Hell?

Tyler Durden's picture




 

Submitted by Bill Bonner via Acting Man blog,

...
The Road to Hell

Keynesianism is a fraud. Supply-siderism is a con. The dollar is a scam. All were developed by people with good intentions. But these good intentions not only paved the road to Hell, they greased it. There was no point putting on the brakes. Once underway, there was no stopping it. Right now, the US slides towards some sort of Hell. Half a century of deceit has produced a nation that is ready to believe anything … and go along with anything … provided it promises to make them rich.

They will be very disappointed when they discover that all the political means they counted on – the phony money, the laws, the regulations, and the wars – have made them poorer. That is when we will really need cages …

“Nothing in nature is evil,” said Marcus Aurelius. Keynes was human. Even Adolf Hitler was a man, a part of nature himself. And the Evil Empire, was it not created by men too, men who – like economists and politicians – followed their own natural impulses? Adolf may have erred and strayed. But he did so with the best of intentions: He thought he was building a better world. And he had all the “reasons” you could ask for. He could argue all day; “proving” that his plan was the best way forward.

Not that there weren’t arguments on the other side. What were smart people to do? People argued about Keynesianism for many years. Each side had good points. One was convincing; the other was persuasive. It was like a couple arguing in divorce court – the husband forgot to take out the trash and knocked over a vase; the wife ran him over with the family car. “He had it coming,” she says. What would an observer think?

No amount of logic could help him. Both parties made good points. All the judge could do was to fall back on his own deep sense of right and wrong, of proportion … and good taste. “She shouldn’t have run him down,” he says.

“Love the man, hate the sin,” say the Baptist preachers. They have a useful point. There’s no point in hating Adolf, Josef, Osama … John Maynard … or any of the other thousands of clowns who entertain, annoy and murder us. They are God’s creatures too, just like the rest of us. What they did wrong was what they always do wrong … they all resorted to political means, to get what they wanted.

We do not hate them; we just hope they get what they deserve.

Read more here

 

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Thu, 04/17/2014 - 09:14 | 4669103 Haus-Targaryen
Haus-Targaryen's picture

While it might not be the road to hell, its about as close as you can get while you still have a pulse

Thu, 04/17/2014 - 09:15 | 4669105 toys for tits
toys for tits's picture

Little short on your time line.  It's been a full century of deceit by the FED.

Thu, 04/17/2014 - 09:22 | 4669132 Sweet Chicken
Sweet Chicken's picture

I see in the fight club the strongest and smartest men who've ever lived. I see all this potential and I see squandering. God damn it, an entire generation pumping gas, waiting tables, slaves with white collars, advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don't need. We're the middle children of the history man, no purpose or place, we have no Great war, no Great depression, our great war is a spiritual war, our great depression is our lives, we've been all raised by television to believe that one day we'd all be millionaires and movie gods and rock stars, but we won't and we're slowly learning that fact. and we're very very pissed off.

Thu, 04/17/2014 - 09:31 | 4669163 ArkansasAngie
ArkansasAngie's picture

It is the thief of my time that pisses me off the most.

They want more time to take their bailouts and turn liquidity into solvency.  I want them declared bankrupt so I can take their real assets ( you can keep the paper) and productively use them.

Moral hazard isn't a quaint term.  It is what prevents cronies from bastardizing capitalism into a mess run by criminals.

 

Screw'em

Thu, 04/17/2014 - 09:33 | 4669182 LawsofPhysics
LawsofPhysics's picture

"Moral hazard isn't a quaint term.  It is what prevents cronies from bastardizing capitalism into a mess run by criminals."-

 

Correct, but only real consequences changes behavior

Free John Corzine!  Oh wait, nevermind...

Thu, 04/17/2014 - 09:40 | 4669196 ArkansasAngie
ArkansasAngie's picture

I'm ready for real consequences.  

The BS about "but ... but ... we've prevented an economic crisis that would have hurt people" misses the point that people have been and are continuing to be hurt today because of their attempt to save themselves.

We need a new set of pickers of winners and losers.  One that recognizes that the current winners are in fact the losers that need to face the piper.

Leave no incumbant in office.

Thu, 04/17/2014 - 09:49 | 4669240 LawsofPhysics
LawsofPhysics's picture

"We need a new set of pickers of winners and losers."-

WTF?!?!?!  The government shouldn't be "picking" anything!!!!!!  That's the fucking problem.

The government (the people) should be insuring that just laws are enforced, period.  Bankrupt a company, you pay back the creditors with your own wealth not the taxpayer's wealth. At a minumum, laws should protect a free an fair market.  There are 7+ billion of us now and resources are fewer, time for harsh measures. Kill somone, you get executed, steal, go to fucking prison.  FYI-prison should not be a place people want to go. Once it becomes clear that the "laws" are only protecting the wealth and liberty of a chosen few, captial and talent will go elsewhere (as it is now). 

If the "other guy" is owned by the same interests as the incumbant, it makes no difference.  Money needs to be taken out of politics before that can happen...

same as it ever was.

Thu, 04/17/2014 - 09:53 | 4669261 ArkansasAngie
ArkansasAngie's picture

I agree.  The market when it isn't rigged passes judgement by putting Arseholes out of business.  

Unrigging the market will pick different winners and losers than the shatheads who currently are manipulating the heck of the market ... to save themselves.

Thu, 04/17/2014 - 10:16 | 4669357 RevRex
RevRex's picture

but but but "Busch did it two"!

 

Both parties are the same!

 

 

yeeeeaaaaaaaaaaaaaaaaarggggggggghhhhhhhhhhhhhh

Thu, 04/17/2014 - 10:21 | 4669377 ArkansasAngie
ArkansasAngie's picture

Yes they are the same.

Until and unless politicians fear voters there will be no change.

If we vote out all incumbants two or three elections in a roll, they may start to get the idea.

To vote for the lesser of two evils (as in between republicans and democrats) is in fact voting for the same evil simply dressed in different clothes.

I used to think you could work from the inside.  You can't.  

Thu, 04/17/2014 - 12:11 | 4669776 James-Morrison
James-Morrison's picture

The problem with large complex systems is that people believe an equally large and complex solution is needed to fix them.

I believe you have found a simple, effective solution to shaking the deadwood out of the system.

At least it is a start and is pretty easy to do. It can't do any harm.

The problem now is like the "wave" at a sporting event: How a small group of people can get the whole stadium to stand up and wave their hands over their head.

Or in this case: Throw the Bums Out!

Thu, 04/17/2014 - 12:38 | 4669885 rubiconsolutions
rubiconsolutions's picture

"....The dollar is a scam. All were developed by people with good intenti"

Uh, excuse me. How could something that is a scam - the dollar - be created by 'people with good intentions'? Common sense dictates that anything that is created as a scam is done so by people who are scoundrels and criminals. The dollar in its present iteration was created by people who sought to rob others of their wealth through stealth with inflation and debasement being the primary weapons. Sorry Bill, this is a piss poor article. 

Thu, 04/17/2014 - 11:05 | 4669536 Kayman
Kayman's picture

"The Market", as commonly construed, is the criminally controlled stock market.  The real free market, as described in textbooks, is exactly what Warren Buffet's crowd (and our slimey banksters) work feverishly to kill.

They pull the strings behind the scenes to kill all competition, most often by having the Fed front run new money to financialize the former free market. Monopolies and Oligopolies describe nearly all large markets.

 

Thu, 04/17/2014 - 11:21 | 4669590 ArkansasAngie
ArkansasAngie's picture

And Warren Buffet escaped moral hazard by being the single largest reciepient of tarp.  So WB is part of the problem and should be in bankruptcy now instead of taking bubble baths.

Not only are these yahoo not tbtf, they are in fact in need of being broken up and sold to the highest bidders who are solvent and liquid.

Thu, 04/17/2014 - 11:35 | 4669636 CH1
CH1's picture

Warren Buffet is a statist sycophant thief.

Thu, 04/17/2014 - 10:07 | 4669316 Neo
Neo's picture

"Money needs to be taken out of politics before that can happen..."

 

Right after we get wet out of water.

Thu, 04/17/2014 - 10:49 | 4669474 LawsofPhysics
LawsofPhysics's picture

If that's truly what you believe, then bloody revolution is the only course of action.

get busy motherfucker.

Thu, 04/17/2014 - 11:34 | 4669626 CH1
CH1's picture

then bloody revolution is the only course of action.

Nah... just stop playing their game. Non-compliance dooms the system, much better and faster than killing.

Thu, 04/17/2014 - 11:59 | 4669729 A Nanny Moose
A Nanny Moose's picture

False dichotomy and projection.

The moochers require your consent and your production. Simply withdraw consent and let the chips fall where they may. Doesn't mean it will always devolve into bloody revolution, and certainly doesn't mean the commentator is for bloody revolution.

You are the only one with the blood lust. Anyone supporting political solutions already has blood on their hands.

....so get busy motherfucker

Thu, 04/17/2014 - 11:20 | 4669587 jaxville
jaxville's picture

"All were developed by people with good intentions"  Credit based money was designed then foisted on humanity strictly to impoverish and control us. Credit based money is the foundation upon which all the power of our establishment rests. It exists soley to deprive us of our property and liberty.

  What bullshit, making excuses for people that ought to be swinging from the local lampole at the end of a rope or forced to flee to Israel.

Thu, 04/17/2014 - 10:39 | 4669441 falak pema
falak pema's picture

Tell that to the Supreme who has just made contributions to political parties unlimited.

Thu, 04/17/2014 - 11:32 | 4669621 CH1
CH1's picture

Leave no incumbant in office.

Leave no office.

Thu, 04/17/2014 - 11:59 | 4669732 X_mloclaM
X_mloclaM's picture

hey repeal the 17th then, new pickers....

 

http://www.lewrockwell.com/2005/05/thomas-dilorenzo/repeal-the-seventeen...

 

....As Roger Sherman wrote in a letter to John Adams: "The senators, being . . . dependent on [state legislatures] for reelection, will be vigilant in supporting their rights against infringement by the legislative or executive of the United States."

Thu, 04/17/2014 - 09:32 | 4669175 Headbanger
Headbanger's picture

Just how rich are these rich people when the world around them is ready to slash their throats and obliterate their homes with a war?

 

 

Thu, 04/17/2014 - 09:33 | 4669180 Pickleton
Pickleton's picture

"we have no Great war"

Dont fret, The great and powerful Ozbama is most certainly working hard to make sure we get into one.  Under no circumstance do we get through the economic crisis we're facing without (prediction time) 100 million dead.

Thu, 04/17/2014 - 09:49 | 4669234 Dr. Richard Head
Dr. Richard Head's picture

Oh no...I am indeed going to be a rock star starting this June.

https://itunes.apple.com/us/album/jiggle-t**s-feat.-tim-gandee/id8267099...

Hahahah

Sun, 04/20/2014 - 09:34 | 4676987 kumquatsunite
kumquatsunite's picture

We're the middle children of the history man, no purpose or place, we have no Great war, no Great depression,

_____________

You should have said, "no Great Depression YET..." 

Look at all the people who are not making an income. Take those on welfare, the entire food stamp crowd, the disability crowd (about 75 percent shouldn't be on disability; example? my buddy has a police officer neighbor "retired" and on disability. Aren't those two mutually exclusive?) Then add in all the refugees being resettled here adn not counted as "immigration." Then add all the immigrants they Say aren't going t be on welfare and who are then put on welfare including you paying for their medical. Then add all those who are old enough that they are hiding in college  to get them to the next few years. You can go to olllege and take out those loans a long long time..Immigration is the greatest ponzi scheme ever seen in this country. Drought in California, we don't need anyjore people in this country except our own. This is called "carrying capacity" and refers to the physical ability via natural resources of the country. Odd no one talks about it. 

Thu, 04/17/2014 - 09:23 | 4669137 achmachat
achmachat's picture

the typo in the title is actually kind of funny. "Keynesian-sim"

Thu, 04/17/2014 - 09:26 | 4669150 Two-bits
Two-bits's picture

Just another day here in the Sims v14.4.17.

But there is a reboot afoot.

Thu, 04/17/2014 - 12:02 | 4669748 A Nanny Moose
A Nanny Moose's picture

That's just a virus.

Thu, 04/17/2014 - 09:35 | 4669185 TeamDepends
TeamDepends's picture

How 'bout this:  Barry's new nickname is Keynesian Slim.

Thu, 04/17/2014 - 09:25 | 4669146 TeamDepends
TeamDepends's picture

No stop signs, speed limits

http://www.youtube.com/watch?v=BSL5cg1K978

Thu, 04/17/2014 - 09:26 | 4669149 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Keynesianism is not the disease, it is a symptom. The disease is incompetence and fraud among our societies' leaders. People incapable of doing anything correct.

Thu, 04/17/2014 - 09:29 | 4669168 Oh regional Indian
Oh regional Indian's picture
  • The problem of leadership is inevitably: Who will play God?
    • Muad'Dib (From the Oral History)
Thu, 04/17/2014 - 09:45 | 4669216 falak pema
falak pema's picture

ha, thats an easy one to solve : the Devil himself! 

If God had not invented his mirror opposite how would he hold sway over the blind?

God and Devil the two faces of metaphysics. 

Thats why Galileo said "I stick to physics and I say the world is not flat". 

Leadership would be much simpler if they took divine legitimacy out of the King's rights! 

You will have noticed that the elected leaders today use divine rights of "world unity"; or conversely of sovereign "nation states"; of "ethnic roots" of "invisible hand of markets" to justify their hubris. 

Nobody ever admits to just being a normal human being lost in translating the signs of the times that are invisible to him. 'Cos that would make him lose his next election ! 

Thu, 04/17/2014 - 10:16 | 4669356 PT
PT's picture

First they say there is no God and THEN they say, "I am God."  I say, "There is a God but it is NOT YOU."

 

 

 

 

 

 

But the earth will always have one person who will say, "No-one can beat me.  Therefore I am God".  Don't listen to them.  Their successor, be it offspring or opposition, will say exactly the same thing.  God is much bigger.

Thu, 04/17/2014 - 10:35 | 4669427 falak pema
falak pema's picture

That is why Don Quixote is a classic.

Windmills ! My enemy's castle. Monty Python's ancestor! 

Thu, 04/17/2014 - 10:22 | 4669383 Oh regional Indian
Oh regional Indian's picture

Interesting that all Divinity implies is the ability to divine. Tell the future. Prophesize. 

Monty Python was Pythagoras returning....

The snake HAS to bite it's own tail ultimately.

ori

Thu, 04/17/2014 - 09:35 | 4669171 Two-bits
Two-bits's picture

+1  It is very easy for the disease to take hold when the body has been doped into submission with Fluoride, GMO's, and SSRI's.  There comes a point when the host can no longer sustain the disease as donor cells become scarce.  

 

It is called death. 

 

and from what I hear, she has a sense of humor, and can kiss like nobody's business.

Thu, 04/17/2014 - 09:40 | 4669200 kridkrid
kridkrid's picture

I think you've got it all wrong. Societies leaders are not incompetent, they are sociopaths. Things have gone, more or less, as they have planned. Income inequality isn't evidence of poor leadership, it's by design. Keynesianism is a part of the disease, I believe. The disease is fiat money and fractional reserve banking. The system, as it is designed, siphons off energy in the form of riches for a very small minority of people. It's systematic enslavement in a world that will pass from Huxley to Orwell over the next 10-15 years if there isn't a mass movement to stop it. I'm not terribly optimistic.

Thu, 04/17/2014 - 16:07 | 4670706 RichardParker
RichardParker's picture

" Societies leaders are not incompetent, they are sociopaths" 

Grasshopper, +100 for you. You can judge a person's actions but it is nearly impossible to judge their intent. They know this and therefore always claim the same excuse that they didn't know that they're goofy policies would only end up benefitting themselves..  Oh, and our "nomenklatura" know they will nver be held accountable for their actions either..

Thu, 04/17/2014 - 10:36 | 4669430 Greenskeeper_Carl
Greenskeeper_Carl's picture

And it was not concocted by someone with good intentions as the author states. Keynes advocated for inflation as a sneaky way to steal a few % of everyone's money without them knowing it. And it was embraced mainly because it gave govts an "economics" excuse to do what they were doing anyway. Good intentions my ass.

Thu, 04/17/2014 - 16:13 | 4670735 RichardParker
RichardParker's picture

There is no governmemt policy that is more REGRESSIVE rhan inflation. There is no betterway to fuck the poor than imfating their paper money.

If II try to explain this to people they say I hate poor people or that I'm racist. Lol as long as rhey keep churning out rhe bread and circus, I guess its all good. Lol

 

Thu, 04/17/2014 - 09:49 | 4669239 nasdaq99
nasdaq99's picture

aren't we already in "tightening" when you consider the budget deficit & the previous 5 years of short term treasury buybacks that have to be rolling off now?

Thu, 04/17/2014 - 10:49 | 4669476 Drifter
Drifter's picture

3,756th article on this subject?

Getting a little boring.

Thu, 04/17/2014 - 11:34 | 4669630 williambanzai7
williambanzai7's picture

Thu, 04/17/2014 - 09:21 | 4669118 Cognitive Dissonance
Cognitive Dissonance's picture

"I'll gladly pay you Tuesday for a hamburger today." - J. Wellington Wimpy

Thu, 04/17/2014 - 09:21 | 4669123 zorba THE GREEK
zorba THE GREEK's picture

The manipulation of every market has been ramped up lately to such a degree

that it must be obvious by now to anyone who is not totally delusional.

I believe it is a trap to capture what little wealth that the non-.01% has left.

Thu, 04/17/2014 - 09:21 | 4669128 buzzsaw99
buzzsaw99's picture

every economic system and every economic theory is a fraud

Thu, 04/17/2014 - 09:49 | 4669233 PT
PT's picture

Who pays the economists?

Economics is not practised as a science.  It is simple propaganda for the paymasters.

Thu, 04/17/2014 - 09:52 | 4669252 PT
PT's picture

Strip back the bullshit and have a good look at the message.

"You will be richer if you are poorer."  The same message preached by religious cults, TV preachers AND HIGHLY PAID ECONOMISTS.

Thu, 04/17/2014 - 12:09 | 4669771 813kml
813kml's picture

Capitalism and economics in general has become a religion unto itself.  And just like religion throughout history, it has been used to brainwash the masses.  You can motivate almost anyone to do anything with a fistful of worthless dollars.

I see its followers everywhere in America, the braindead zombies that worship their false idol everyday buying plastic shit on credit.  And like the Crusades, it has been used as an excuse to invade foreign lands into order to spread the prophecy.

Thu, 04/17/2014 - 09:21 | 4669129 yogibear
yogibear's picture

All those young minds polluted with Keynesiansim economics.

As a result we have PhDs like Bernanke, Charles Evans and Glen Hubbard that preached this trash.

Thu, 04/17/2014 - 09:21 | 4669131 Shizzmoney
Shizzmoney's picture

More like purgatory.....hell is at least a (unfavorable) destination.  

On top of that, I even think Keynes himself would poo-poo what the Fed's economists are doing today.  

Thu, 04/17/2014 - 09:27 | 4669158 LawsofPhysics
LawsofPhysics's picture

yes, still waiting for the catharsis...

Thu, 04/17/2014 - 09:33 | 4669135 falak pema
falak pema's picture

Its not Keynesianism, its the combination of unabated monetarist Friedmanism and Oligarchy domination used to build the supply side FIRE economy.

And, the private owned FED was the first step down that route; the hallmark of Oligarchy big business rule over finance. It led to the roaring 20s ...delusional entry to 1929 crisis that we repeat. 

Contrary to what people post  here the time value of money; paying tomorrow from proceeds of investment today; is not the cause of the spiral going viral. Its the fractional reserve and geometric progression of interest that gives private banks-- the true disseminators of money line--- the exclusive control to raise debt based spirals that become raging twisters fed on that never ending obligation to debt gone ballistic; under interest servitude.

By creating the TBTF universal bank the US has dug the grave of its own greenback hegemony.  

Thu, 04/17/2014 - 10:35 | 4669429 Oh regional Indian
Oh regional Indian's picture

To your last line, probably by design. The seeeming implosion on a Century Anniversary (GOlden Anniversary, please note) is a little stretch other-wise.

ori

Thu, 04/17/2014 - 10:42 | 4669447 falak pema
falak pema's picture

there are two types of golden dates : the ones you EAT with pleasure (I like the Algerian variety we find here) and the ones you vomit....

Thu, 04/17/2014 - 09:25 | 4669139 q99x2
q99x2's picture

Fraud is a weapon of war against the people. The FED and Globalists are using it to steal everything from us and then they are going to kill the ones that somehow survive by having the DHS shoot us.

Its a plan Stan.

They are banksters. That's what banksters do.

Thu, 04/17/2014 - 10:08 | 4669321 inky
inky's picture

Debt is the war against a population.

Interest is its amunition.

Thu, 04/17/2014 - 12:06 | 4669765 X_mloclaM
X_mloclaM's picture

Legal Tender laws forcing banknotes as the only one money choice is the 'war'

Interest rate is the price of money over time ...

Thu, 04/17/2014 - 09:24 | 4669140 Doubleguns
Doubleguns's picture

I think they should still be hung on the gate when we get there. 

Thu, 04/17/2014 - 09:31 | 4669148 LawsofPhysics
LawsofPhysics's picture

When fraud is the status quo, possession is the law.

This is all you need to know.

Anything outside of your possession or circle of trust now has certain counterparty risks that it didn't even five years ago, many that you may not be aware of, hedge accordingly.

 

Not only did the oligarchs move the goal posts, they didn't tell anybody where they moved them too...

Thu, 04/17/2014 - 09:47 | 4669226 Bastiat
Bastiat's picture

Possession is the law until the law attacks possession.  I'm not limiting this to gold confiscation.  When the state can seize anything, what does ownership mean? 

Thu, 04/17/2014 - 09:53 | 4669262 LawsofPhysics
LawsofPhysics's picture

Big difference between theory and reality friend.

"laws" that cannot be enforced really are not laws at all.

Are you saying that the state can seize anything?

Ever lived in China?  Ever lived in Russia?

Both have had laws claiming just that.

I have, booming black markets...

massive corruption.

Thu, 04/17/2014 - 09:50 | 4669246 ArkansasAngie
ArkansasAngie's picture

And thus all my investments are local.

Actually I think that this concept is the heart of our problem.  Money that is made locally based on the sweat of your brow is sipphoned off to New York.  In the process our local economies have been starved of investment.  And with that lack of investment the jobs engines have been silenced.  

So also has our control over the criminals amongst us.  We depend on Washington to defend us against the bad guys versus putting these gangsters in suits in jail.

Thu, 04/17/2014 - 09:55 | 4669268 LawsofPhysics
LawsofPhysics's picture

"Money that is made locally based on the sweat of your brow is sipphoned off to New York, and D.C."- fixed...

Thu, 04/17/2014 - 09:28 | 4669164 Dr. Engali
Dr. Engali's picture

 "Keynesianism is a fraud. Supply-siderism is a con. The dollar is a scam.  All were developed by people with good intentions."

 

WTF is this garbage? The dollar and Keynesianism all serve one purpose and that is to enrich the elite. The fact that we have to borrow our money into existence is absurd.  

Thu, 04/17/2014 - 09:33 | 4669177 Sweet Chicken
Sweet Chicken's picture

The fact that we have to borrow our money into existence is absurd.  

                                   ^THIS

Thu, 04/17/2014 - 09:40 | 4669195 Two-bits
Two-bits's picture

Now if only Congress would do something about it...ahem...Constitution...ahem.

*slap*

 

Sorry about that.  If forgot about the single digit approval rating and just short of full incumbency.  The system cannot be fixed from the inside.  Unless by "fixed" you are referring to the use of edged steel and landscape timbers.

 

Gallagher once said if the opposite of Pro is Con,

then the opposite of progress is Congress.

Thu, 04/17/2014 - 10:20 | 4669368 PT
PT's picture

... and the opposite of Constitution is ...

Thu, 04/17/2014 - 10:33 | 4669417 Two-bits
Two-bits's picture

Right you are.  

Thu, 04/17/2014 - 11:09 | 4669549 SimplePrinciple
SimplePrinciple's picture

Supply side, properly defined, is very much consistent with the Constitution.  They are both about keeping government out of the way so people have the incentive to be productive.  It was the liberal/progressive media of the 80s onward that constantly flung the term "trickle down" at supply side.  It stuck and made it seem like supply side was about giving to the rich (e.g. banksters) so they might spend and help the peons.  Nothing could be further from the truth.

In supply side economics, you get rich by people voluntarily giving you their money in exchange for something you provide that is more valuable to them than the money they just gave you.  Win, win, and no subsidies.

Fri, 04/18/2014 - 03:46 | 4672344 PT
PT's picture

I never understood how that phrase, "trickle down", was always accepted unquestioned.  To me, it always sounded too much like "Let them eat crumbs" (note I said crumbs, not even cake!)

Even now, no-one ever picks up on it.  What the hell are people thinking -  "oooooooo, I produce hundreds of cakes per day but no way could I possibly deserve a piece of cake!"

Wake up.

Thu, 04/17/2014 - 12:16 | 4669793 X_mloclaM
X_mloclaM's picture

That was supposed to be the point. Slow, debated, loud, sticky process *gridlock*

Senators defend people and congressional reps from executive, federal courts stick to federal issues, even then States retain innate and final say over a body they authorize with both extensive prohibitions and the right of resumption enumerated

 

Thu, 04/17/2014 - 09:28 | 4669165 Kantbelieveit
Kantbelieveit's picture

There seems to be a chronic difficulty here of failing to distinguish between the machinery and how it is used. Central banking, economic multiplier effects, and fiscal stimulus are all sound mechanisms. The fact that the plutocrats have skewed policy to create the current mess does not invalidate the hard-won advances of Keynesian economic theory.

Putting gold bricks under your mattress will simply lead the thugs serving the plutocrats to search under your mattress. J.M. Keynes has nothing to do with the causes of American societal corruption.

Thu, 04/17/2014 - 09:41 | 4669204 Two-bits
Two-bits's picture

Putting gold bricks under your mattress will simply lead the thugs serving the plutocrats to search under your mattress -Kantbelieveit

 

That is why you always diversify.  

 

Au(or Ag) and Pb

Thu, 04/17/2014 - 10:24 | 4669387 PT
PT's picture

Fuckit.  I'll just buy lots of gold and silver and give it away to complete strangers.  Then when the thugs come looking, I'll look 'em square in the eye and say, "I got no idea where it is anymore."  That'll get 'em!

 

 

 

 

 

Yeah yeah, I'm lying again (or am I?)  But you gotta admit, my plan is pretty sound and very sneaky! ...

Thu, 04/17/2014 - 09:53 | 4669259 kridkrid
kridkrid's picture

Societal corruption is a direct result of debt/credit money, in my opinion. Whether or not you want to put the creation of our system at the feet of Keynes is open to debate. More likely, he was a useful idiot whose ideas served the interests of the oligarchs. Our country separated from reality a long time ago, but by something like 5% per year. Exponential function... and boiling frogs. We have no idea just how far we've gone because it has been gradual.

Thu, 04/17/2014 - 10:12 | 4669340 Doubleguns
Doubleguns's picture

"...does not invalidate the hard-won advances of Keynesian economic theory."

 

They were not hard won. They were shoved down unsuspecting college students throats by college professors everywhere. 

 

Those who can't, "teach".

Those who can, "Do".

 

This theory is bust I believe. We are 17 trillion past bust. Destroy your property to the point that you can not afford to replace it seems to be the new Keynesian theory. Not just a few broken windows. WHEN do keynesians pull their head out of their glutes. 

Thu, 04/17/2014 - 09:29 | 4669166 John Wilmot
John Wilmot's picture

If one were trying to design an economic policy to waste/hinder production to the maximum extent possible, one could hardly do better than Keynesianism.

In Orwell's dystopia, the governments fight wars for the sole purpose of wasting production; in Huxely's, they devise overly elaborate sports for the same purpose.

Makes you wonder..

Thu, 04/17/2014 - 09:55 | 4669271 kridkrid
kridkrid's picture

What idiot could down vote that post?

Thu, 04/17/2014 - 12:19 | 4669816 X_mloclaM
X_mloclaM's picture

A useful one.

A nice touch, that Lenin statues falling was caused by neo's ...

Thu, 04/17/2014 - 09:32 | 4669178 EcoJoker
EcoJoker's picture

Speak for yourself, I DO hate them. 

Thu, 04/17/2014 - 15:42 | 4670605 Ariadne
Ariadne's picture

Do you hate them enough to marry into their family? I can't think of a better form of revenge. 

Thu, 04/17/2014 - 09:32 | 4669179 message2gowri
message2gowri's picture

Nothing Going to Happen for another 15-35 years. After that we may hope market adapt this scam and move on with new direction like we moved from Paper to iPad!!

Thu, 04/17/2014 - 09:38 | 4669191 icanhasbailout
icanhasbailout's picture

Keynesianism is just a symptom of central banking. If Keynesianism didn't exist, another rationale for massive money printing and government spending would be concocted.

Thu, 04/17/2014 - 12:20 | 4669822 X_mloclaM
X_mloclaM's picture

Lord Acton :  "The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks."

Thu, 04/17/2014 - 09:38 | 4669192 Bill of Rights
Bill of Rights's picture

Fired Yahoo exec gets $58M for 15 months of work

 

Yahoo's recently fired chief operating officer, Henrique de Castro, left the Internet company with a severance package of $58 million even though he lasted just 15 months on the job.

Fri, 04/18/2014 - 20:16 | 4674473 PT
PT's picture

Freeeeeeeeeeeeeeeeee markit efficiency!  No-one could possible have done what he did for $57 million dollars!  hehehehehehehehhehe...

Thu, 04/17/2014 - 09:43 | 4669212 Curt W
Curt W's picture

Jeff Reeves at Market Watch thinks eveybody should be thrilled about inflation.

It means we have a strong economy

Thu, 04/17/2014 - 09:44 | 4669213 youngman
youngman's picture

Its not going to stop...there are to many people who demand the free money now....they will never vote for someone who pouts that they are going to cut spending..never....so its debt from here on out...and as more and more people get hooked on it...the more they will print...I do think the rest of the world sees this and is making moves to get away from the dollar....we are no longer the leader..we are trash now..

Thu, 04/17/2014 - 10:25 | 4669398 gcjohns1971
gcjohns1971's picture

78 million full-time non-government workers.

148 million on public assistance of which 88 million are on welfare - the rest are SS.

 

The producers are outnumbered by those riding on their backs two-to-one.

The politicos will print money to oblivion because it is the only thing they can do.

Thu, 04/17/2014 - 12:24 | 4669834 X_mloclaM
X_mloclaM's picture

James Madison's 'Tyranny of the Masses'

education will occur, by crook and by hook, as necessity takes over from empty-pocketed entitlers

though Maduro seems to be doing okay as his citizens learn about the structure of production of toilet paper

Thu, 04/17/2014 - 09:49 | 4669232 i_fly_me
i_fly_me's picture

Something for nothing, baby - Give the people what they want and charge it to someone they don't know. What could go wrong?

https://www.youtube.com/watch?v=r1ZOX04z-Fo

 

Thu, 04/17/2014 - 10:02 | 4669297 kellycriterion
kellycriterion's picture

Well this is an idiotic article. The real relationship between the leaders-followers is pusher-junkie.

The "good intentions" are the con. Epistemology, humility, courage are the enemies. The rationalizations, the reinventions, the stories? Everyone is fooled because no one is fooled.

Thu, 04/17/2014 - 10:22 | 4669381 gcjohns1971
gcjohns1971's picture

"All were developed by people with good intentions"

 

BS.

It was all about getting something for nothing.

Thu, 04/17/2014 - 10:40 | 4669443 Mediocritas
Mediocritas's picture

I don't recall seeing Bill Bonner on ZH before, maybe I missed it. If not then it's about damn time he started getting airplay. I've been reading the guy for years because he's a true scholar of human behaviour and he knows how to describe it with a turn of phrase that's second to none. Not one to fall for the good / bad guy, left / right, us / them bullshit, which provides a refreshing read.

Can't say I care much for some of the bullshit written by other various hangers-on in the Agora group though. Bill's a mainstay, the rest, meh.

Thu, 04/17/2014 - 10:48 | 4669473 The Abstraction...
The Abstraction of Justice's picture

Keynes was a predatory homosexual paedophile. Do you really think he had good intentiions of any kind?

Thu, 04/17/2014 - 12:26 | 4669841 X_mloclaM
X_mloclaM's picture

paedophile

link?

Thu, 04/17/2014 - 10:52 | 4669487 shovelhead
shovelhead's picture

I'd bet even Keynes, looking at todays Fed actions, would say:

"Are you fucking stupid?"

Thu, 04/17/2014 - 10:52 | 4669492 A Dollar Short
A Dollar Short's picture

Greed Knows No Bounds.

Thu, 04/17/2014 - 10:59 | 4669514 SystemOfaDrown
SystemOfaDrown's picture

Keynesianism is [proven] modern neofeudalistic economic system that bring the elite, oligarchs, corporation to feast at banquet table of GDP wealth, to their hearts content, then throw remaining scraps and crumbs to us.

Thu, 04/17/2014 - 12:04 | 4669757 novictim
novictim's picture

Wrong by 180 degrees.

Economics is a balance of two factors: Production and Consumption.  One factor should over time equal the other if left alone.  The equilibrium can be at a low GDP or a high GDP depending on the ultimately the consumers ability to consume.

Kaynesian policy puts money directly into consumer pockets by creating WPA, NEW DEAL, Public works projects...what ever is needed to build infrastructure and drop the unemployment rate.  Keynes believed that the consumer should spur on economic growth and production demand, not the other way around as in supply side economics.

The supply side policy from Ronald Reagan to Bill CLinton to George Bush To Obamama is to give money to investors and globalist industrialists and crony capitalists...THAT is the FEUDALISM we are seeing today.

Despite the fact that we have 20%+ overcapacity to produce goods we still see money from the public funneled into the wealthiest pockets of society.  Why would you build a new factory to employ workers when your current factory is only producing at 75% capacity?????  You wouldn't!  

System, when you hear some asshole say "we need to help the job creators" then you know you are listening to a Supply Sider, not a Keynesian.  Supply Side economics is the CON GAME you should focus on.  

Thu, 04/17/2014 - 13:08 | 4669998 Pickleton
Pickleton's picture

"Kaynesian policy puts money directly into consumer pockets by creating WPA, NEW DEAL, Public works projects"

BWAAHAHAHAHAHAHHAHAHAA!!   Sooner or later that MASSIVE DEBT has to be paid.  I suppose since the recipients of your benevolent dollars cant pay it back, we'll just stick a pipe directly into a unicorn's ass to mine that money.

Thu, 04/17/2014 - 13:29 | 4670069 novictim
novictim's picture

Oh, you sad little fuck.  I'm talking about the USA since WWII to the 1970s...the golden years before the end of Keynesian Policy.  There is no economist today who would not trade the monstrous mismanagement and monetary heist of the American people of today with the wealthy middle-class building policy of the Post-New-deal Keynesian era.

I'd laugh back at you but your ignorance and the force of your sincerity is just too sad.  Our species is doomed.  

You have been convinced by wealthy oligarchs, the same folks who despised Keynes for emphasizing the middle-class and workers of this country, that the sky is green and the grass is blue.  I can't help you if you don't start thinking critically.

Thu, 04/17/2014 - 11:00 | 4669517 amadeus39
amadeus39's picture

Since god is a creation of man, there is no god except the idea in our minds. We create our own fate.

 

Thu, 04/17/2014 - 11:13 | 4669564 Son of Captain Nemo
Son of Captain Nemo's picture

"We do not hate them; we just hope they get what they deserve."...

"We do not hate them (speak for yourself); we just hope they get what they deserve (in this life and planet we share with them)!...

Fixed it!

Thu, 04/17/2014 - 11:52 | 4669697 novictim
novictim's picture

You and I both know, Tyler, that you haven't the faintest clue as to what constitutes Keynesian economics.  

Everytime you bring it up, you fail to connect your ad-hominem to a policy that is carried out today.  I can understand that as we are not seeign Keynesian economics carried out today in the USA because, if we were, then we would see an unemployment rate as THE CENTRAL FOCUS of government policy.

The core of Keynesian economics is that the CONSUMER is the engine for real growth and prosperity.  You take care of the consumer and that feeds the demand for produciton.  It also states that once you have a healthy economy you then pay down public debts.

The core of Supply Side economics is just the opposite.  Are your readers starting to notice how clueless you are or are they supposed to feel "in" on this "joke"?...

Are ZH readers just supposed to nod and signal "Yah!  That damn "Keynesianism" didn't even send me my unemployment check this month!" ?

Thu, 04/17/2014 - 12:04 | 4669754 Kantbelieveit
Kantbelieveit's picture

ZH gets credit for breaking stories the conventional media won't touch, but it is also a magnet for demonizers, people who need to concentrate their hatred on scapegoats. Stoking hatred of Keynes, whose theories are the basis for modern macroeconomic management, drives up the site traffic, which means money in the till, but it is a scurrilous form of commerce.

Thu, 04/17/2014 - 12:21 | 4669820 novictim
novictim's picture

Yes, Kant, but it is important to note that Modern Macroeconomic Theory and "Keynesian policy" are different animals.

You can have folks like Alan Greenspan and Paul Volker and Larry Summers and Ben Bernanke all understanding the postulates of modern economic theory but they can still engage in UN-KEYNESIAN economic policy choices.

I think this is the central misunderstanding playing itself out here at Zero Hedge. 

Thu, 04/17/2014 - 12:30 | 4669855 X_mloclaM
X_mloclaM's picture

You can have folks like Alan Greenspan and Paul Volker and Larry Summers and Ben Bernanke all understanding the postulates of modern economic theory

moron

There is no way they have had the joy of readin' Man, Economy and State.

Grenspan is easily the most well read of the 3 who duped... you

Thu, 04/17/2014 - 12:33 | 4669871 novictim
novictim's picture

Dip shit...this is the problem with the peanut gallery.  You can't understand context.

I am not praising those shit fucks.  I'm saying they are NOT keynesians.  THey don't claim to have been Keynesians and they are NOT keynesians.

Thu, 04/17/2014 - 12:11 | 4669778 novictim
novictim's picture

Tyler, I demand that you take a few days and learn the difference between Keynesianism and Supply Side Economics...

 

Futher, I demand that you include actual examples of Keynesian policy when you start to attack Keynesian economics.

Is that reasonable?

Thu, 04/17/2014 - 12:26 | 4669839 H. Perowne
H. Perowne's picture

Since the Tyler(s) didn't write the above article . . . no, not really. Can't keep up with the conversation? Don't talk.

Thu, 04/17/2014 - 12:38 | 4669891 novictim
novictim's picture

Tyler is the Editor.  Buck stops with the Editor.

Regarding the Crank, Bill Bonner:  He is not an economist.

Wiki:

Bonner attended the University of New Mexico and Georgetown University Law School and he began work with Jim Davidson, at the National Tax-payer's Union.

Bonner has received awards for renovating historic buildings along with his project manager, Jean Hankey.

Thu, 04/17/2014 - 13:11 | 4670016 Pickleton
Pickleton's picture

"Tyler is the Editor.  Buck stops with the Editor."

But since you're whining about the content you'd be talking about the writer...  Like the guy said, just STFU while you're behind.

 

 

Thu, 04/17/2014 - 13:20 | 4670039 novictim
novictim's picture

Is there a single one of you who ACTUALLY know what Keynesian economics is?

All I ever see here is Keynes the Pinata but I never get the sense that the guys holding the bat recognize what they are hitting.

Hilarious...or tragic?  Both?

Thu, 04/17/2014 - 13:09 | 4670010 RichardParker
RichardParker's picture

Keynes was a charlatan (among other thngs). Perhaps ZH should do  short bio on him...

 

 

Thu, 04/17/2014 - 13:16 | 4670033 novictim
novictim's picture

Face it , Rich, you are way out of your depth.

Thu, 04/17/2014 - 23:33 | 4672035 RichardParker
RichardParker's picture

Really?  Here is Keynes IN HIS OWN WORDS:

By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

 

Like I said, he was a charlatan (among other things)...

Thu, 04/17/2014 - 15:37 | 4670585 Ariadne
Ariadne's picture

Write it

Thu, 04/17/2014 - 12:20 | 4669809 lasvegaspersona
lasvegaspersona's picture

Understanding how humans organize themselves to get what they want by the political process is key to understanding how the world works.

We see groups forming to get what others produce without having to do work. They tax, they inflate and they try to control the flow of goods and services. They use the monetary system as much as they use tanks and fighter jets. They (we) have always done this. We force the people to store their wealth in a form that can be easily stolen. That is what currency is. Keynes did not see it. He just saw the way money flowed and he did not see the underlying problem that rich and poor alike face. 'The hungry collective' (as fofoa calls it) will always be on the prowl for ways to get what others produce.

The world needs a better, safer way to store wealth.

Thu, 04/17/2014 - 12:34 | 4669861 novictim
novictim's picture

What are you talking about?  Was your landlord names "Keynes", by chance?

BTW: I tried storing my wealth as meat for a year or so...yep, that was a bust.  Oh, the smell!

....now I'm trying to store it as animal skins.  

Thu, 04/17/2014 - 12:41 | 4669903 X_mloclaM
X_mloclaM's picture

Lots here seem to need to read some Paine. On money, and on currency laws....

https://mises.org/daily/2942

I remember a German farmer expressing as much in a few words as the whole subject requires; "money is money, and paper is paper."

All the invention of man cannot make them otherwise. ...

Paper, considered as a material whereof to make money, has none of the requisite qualities in it. It is too plentiful, and too easily come at. It can be had anywhere, and for a trifle.

There are two ways in which I shall consider paper.

The only proper use for paper, in the room of money, is to write promissory notes and obligations of payment in specie upon. A piece of paper, thus written and signed, is worth the sum it is given for, if the person who gives it is able to pay it, because in this case, the law will oblige him. But if he is worth nothing, the paper note is worth nothing. The value, therefore, of such a note, is not in the note itself, for that is but paper and promise, but in the man who is obliged to redeem it with gold or silver.

Paper, circulating in this manner, and for this purpose, continually points to the place and person where, and of whom, the money is to be had, and at last finds its home; and, as it were, unlocks its master's chest and pays the bearer.

But when an assembly undertakes to issue paper as money, the whole system of safety and certainty is overturned, and property set afloat. Paper notes given and taken between individuals as a promise of payment is one thing, but paper issued by an assembly as money is another thing. It is like putting an apparition in the place of a man; it vanishes with looking at it, and nothing remains but the air.

Money, when considered as the fruit of many years' industry, as the reward of labor, sweat and toil, as the widow's dowry and children's portion, and as the means of procuring the necessaries and alleviating the afflictions of life, and making old age a scene of rest, has something in it sacred that is not to be sported with, or trusted to the airy bubble of paper currency.

By what power or authority an assembly undertakes to make paper money, is difficult to say.

It derives none from the Constitution, for that is silent on the subject. It is one of those things which the people have not delegated, and which, were they at any time assembled together, they would not delegate. It is, therefore, an assumption of power which an assembly is not warranted in, and which may, one day or other, be the means of bringing some of them to punishment.

...

It was horrid to see, and hurtful to recollect, how loose the principles of justice were left, by means of the paper emissions during the war. The experience then had should be a warning to any assembly how they venture to open such a dangerous door again.

As to the romantic, if not hypocritical, tale that a virtuous people need no gold and silver, and that paper will do as well, it requires no other contradiction than the experience we have seen.

Though some well-meaning people may be inclined to view it in this light, it is certain that the sharper always talks this language.

There are a set of men who go about making purchases upon credit, and buying estates they have not wherewithal to pay for; and having done this, their next step is to fill the newspapers with paragraphs of the scarcity of money and the necessity of a paper emission, then to have a legal tender under the pretense of supporting its credit, and when out, to depreciate it as fast as they can, get a deal of it for a little price, and cheat their creditors; and this is the concise history of paper money schemes.

...

But why, since the universal customs of the world has established money as the most convenient medium of traffic and commerce, should paper be set up in preference to gold and silver? The productions of nature are surely as innocent as those of art; and in the case of money, are abundantly, if not infinitely, more so. The love of gold and silver may produce covetousness, but covetousness, when not connected with dishonesty, is not properly a vice. It is frugality run to an extreme. But the evils of paper money have no end. Its uncertain and fluctuating value is continually awakening or creating new schemes of deceit. Every principle of justice is put to the rack, and the bond of society dissolved. The suppression, therefore, of paper money might very properly have been put into the act for preventing vice and immorality.

The pretense for paper money has been that there was not a sufficiency of gold and silver. This, so far from being a reason for paper emissions, is a reason against them.

As gold and silver are not the productions of North America, they are, therefore, articles of importation; and if we set up a paper manufactory of money, it amounts, as far as it is able, to prevent the importation of hard money, or to send it out again as fast it comes in; and by following this practice we shall continually banish the specie, till we have none left, and be continuously complaining of the grievance instead of remedying the cause.

Considering gold and silver as articles of importation, there will in time, unless we prevent it by paper emissions, be as much in the country as the occasions of it require, for the same reasons there are as much of other imported articles. But as every yard of cloth manufactured in the country occasions a yard the less to be imported, so it is by money, with this difference, that in the one case we manufacture the thing itself and in the other we do not. We have cloth for cloth, but we have only paper dollars for silver ones.

As to the assumed authority of any assembly in making paper money, or paper of any kind, a legal tender, or in other language, a compulsive payment, it is a most presumptuous attempt at arbitrary power. There can be no such power in a republican government: the people have no freedom — and property no security — where this practice can be acted: and the committee who shall bring in a report for this purpose, or the member who moves for it, and he who seconds it merits impeachment, and sooner or later may expect it.

Of all the various sorts of base coin, paper money is the basest. It has the least intrinsic value of anything that can be put in the place of gold and silver. A hobnail or a piece of wampum far exceeds it. And there would be more propriety in making those articles a legal tender than to make paper so.

It was the issuing base coin, and establishing it as a tender, that was one of the principal means of finally overthrowing the power of the Stuart family in Ireland. The article is worth reciting as it bears such a resemblance to the process practiced in paper money.

Brass and copper of the basest kind, old cannon; broken bells, household utensils were assiduously collected; and from every pound weight of such vile materials, valued at four pence, pieces were coined and circulated to the amount of five pounds normal value. By the first proclamation they were made current in all payments to and from the King and the subjects of the realm, except in duties on the importation of foreign goods, money left in trust, or due by mortgage, bills or bonds; and James promised that when the money should be decried, he would receive it in all payments, or make full satisfaction in gold and silver. The nominal value was afterwards raised by subsequent proclamations, the original restrictions removed, and this base money was ordered to be received in all kinds of payments As brass and copper grew scarce, it was made of still viler materials, of tin and pewter, and old debts of one thousand pounds were discharged by pieces of vile metal amounting to thirty shillings in intrinsic value. (Leland's History of Ireland, vol. iv. p. 265.)

Had King James thought of paper, he needed not to have been at the trouble or expense of collecting brass and copper, broken bells, and household utensils.

The laws of a country ought to be the standard of equity, and calculated to impress on the minds of the people the moral as well as the legal obligations of reciprocal justice. But tender laws, of any kind, operate to destroy morality, and to dissolve, by the pretense of law, what ought to be the principle of law to support, reciprocal justice between man and man — and the punishment of a member who should move for such a law ought to be death.

When the recommendation of Congress, in the year 1780, for repealing the tender laws was before the Assembly of Pennsylvania, on casting up the votes, for and against bringing in a bill to repeal those laws, the numbers were equal, and the casting vote rested on the speaker, Colonel Bayard.

"I give my vote," said he, "for the repeal, from a consciousness of justice; the tender laws operate to establish iniquity by law." But when the bill was brought in, the House rejected it, and the tender laws continued to be the means of fraud.

If anything had or could have a value equal to gold and silver, it would require no tender law; and if it had not that value it ought not to have such a law; and, therefore, all tender laws are tyrannical and unjust and calculated to support fraud and oppression.

Most of the advocates for tender laws are those who have debts to discharge, and who take refuge in such a law, to violate their contracts and cheat their creditors. But as no law can warrant the doing an unlawful act, therefore the proper mode of proceeding, should any such laws be enacted in future, will be to impeach and execute the members who moved for and seconded such a bill; and put the debtor and the creditor in the same situation they were in, with respect to each other, before such a law was passed.

Men ought to be made to tremble at the idea of such a bare-faced act of injustice. It is in vain to talk of restoring credit, or complain that money cannot be borrowed at legal interest; until every idea of tender laws is totally and publicly reprobated and extirpated from among us.

As to paper money, in any light it can be viewed, it is at best a bubble. Considered as property, it is inconsistent to suppose that the breath of an assembly, whose authority expires with the year, can give to paper the value and duration of gold. They cannot even engage that the next assembly shall receive it in taxes. And by the precedent (for authority there is none), that one assembly makes paper money, another may do the same, until confidence and credit are totally expelled, and all the evils of depreciation acted over again. The amount, therefore, of paper money is this, that it is the illegitimate offspring of assemblies, and when their year expires, they leave a vagrant on the hands of the public….

Paper money is like dram-drinking, it relieves for a moment by deceitful sensation, but gradually diminishes the natural heat, and leaves the body worse than it found it. Were not this the case, and could money be made of paper at pleasure, every sovereign in Europe would be as rich as he pleased. But the truth is, that it is a bubble and the attempt vanity. Nature has provided the proper materials for money: gold and silver, and any attempt of ours to rival her is ridiculous….

Paper money appears at first sight to be a great saving, or rather that it costs nothing; but it is the dearest money there is. The ease with which it is emitted by an assembly at first serves as a trap to catch people in at last. It operates as an anticipation of the next year's taxes. If the money depreciates, after it is out, it then, as I have already remarked, has the effect of fluctuating stock, and the people become stock-jobbers to throw the loss on each other.

If it does not depreciate, it is then to be sunk by taxes at the price of hard money; because the same quantity of produce, or goods, that would procure a paper dollar to pay taxes with, would procure a silver one for the same purpose. Therefore, in any case of paper money, it is dearer to the country than hard money, by all the expense which the paper, printing, signing, and other attendant charges come to, and at last goes into the fire.

Suppose one hundred thousand dollars in paper money to be emitted every year by the assembly, and the same sum to be sunk every year by taxes, there will then be no more than one hundred thousand dollars out at any one time. If the expense of paper and printing, and of persons to attend the press while the sheets are striking off, signers, etc. be five percent., it is evident that in the course of twenty years' emissions, the one hundred thousand dollars will cost the country two hundred thousand dollars. Because the paper maker's and printer's bills, and the expense of supervisors and signers, and other attendant charges will in that time amount to as much as the money amounts to; for the successive emissions are but a recoinage of the same sum.

Thu, 04/17/2014 - 12:44 | 4669912 withglee
withglee's picture

Money is "a promise to complete a trade". This is obvious from examining trade: (1) Negotiation;(2) Promise; (3) Delivery. In simple barter, steps (2) and (3) happen simultaneously "on the spot". Money allows (3) to happen over time and space.

Here's how it works: A trader makes a promise to the Medium of Exchange (MOE) ... which is the marketplace, and the MOE manager certifies the promise by creating media (money) ... such certification is actuarial and mechanical.

When the trader delivers, he returns the certificates and they are extinguished. In the meantime they circulate as items of simple barter, like gold. They can do this because under proper management they never lose their value (i.e. INFLATION of the MOE is "guaranteed" to be zero.)

If the trader fails to deliver as promised, he DEFAULTS (Note: a rollover is a DEFAULT). DEFAULTed certificates are recovered with equal INTEREST collections and extinguished, thus "guaranteeing" zero INFLATION by the obvious relalation: INFLATION = DEFAULT - INTEREST.

Knowing this, lets read this essay:

vvvvvvv
Keynes argued that a government could take the edge off a business recession by making more credit available when money got tight … and by spending itself to make up for the lack of spending on the part of consumers and businessmen.
^^^^^^^
Under proper management of the MOE, there is no such thing as "tight" money. There is no such thing as "credit". There is no such thing as "capitalism". The supply of money is always in perfect balance with the demand ... it's the nature of trade. Spending is really just a trader make a trading promise. If he uses money, he is bartering. If he creates money, he is promising a future delivery.

vvvvvv
Soon economists were advising all major governments about how to implement the new “ism.” It did not seem to bother anyone that the new system was a fraud. Where would this new money come from? And what made anyone think that the economists’ judgment of whether it made sense to spend or save was better than any individual’s?
^^^^^^
Governments are deadbeat traders. They make trading promises but they never keep them. They just roll them over (they DEFAULT). Worse, they claim themselves to be the most reliable traders and grant themselves the lowest INTEREST rates. The result is that government is funded by INFLATION. The "promises" they make are counterfeit.

vvvvvvv
But when he undertakes to get people to do what he wants – either by offering them money that is not his own … by defrauding them with artificially low interest rates … or by printing up money that is not backed by something of real value (such as gold) … he has crossed over to the dark side. He has moved to political means to get what he wants. He has become a jackass.
^^^^^^^
In a properly managed MOE, the concept of offering money that is "not his own" is ridiculous. Money used in simple barter is assumed to be "owned" by the trader. And money created by promise is obviously owned by the promise maker.

vvvvvvv
Gold is fine, they said, but it’s anti-social. It resists new “isms” and drags its feet on financing new social programs.
^^^^^^^
Gold is just an item of barter. But it is less "fine" than money which is "a promise to complete a trade". A properly managed MOE guarantees zero INFLATION and supply/demand balance everywhere always. Gold can't do this. Gold actually perpetually guarantees an imbalance between supply and demand when it claims to be money (which is a fraud).

vvvvvv
Clearly, when we face a war or a Great National Purpose we need money that is willing to stand up and sign on.
^^^^^^
Ah. Herein lies the problem. How do you finance a fight? Well, before large governments, people packed a lunch, picked up their arms, mounted their horses, and went out and fought. Now fights are about transfer of wealth.

vvvvvv
But what we need is a source of public funding … a flexible, expandable national currency … a political money that we can work with. We need a dollar that is not linked to gold.
^^^^^^
The source of public funding is "taxation". The source of private fundings is trading promises and delivery. Public funding should be required only for those things that can't be accomplished privately.

vvvvvv
An ounce of it today buys about the same amount of goods and services as an ounce in 1913
^^^^^^
This underpins arguments for pegging money to the commodity gold. It doesn't examine pegging it to silver, wheat, pork bellies, polished pebbles, wasted watts, etc. But it reveals a complete misunderstanding of what money is: "a promise to complete a trade".

vvvvvv
Keynesianism is a fraud. Supply-siderism is a con. The dollar is a scam.
^^^^^^
True. But the fraud is simple counterfeiting (lying). Supply side would work better if a "bubble up" proposal were offered rather than a "trickle down" proposal. Both are wrong, but with the former, the poor get to touch the counterfeit money at least once. In the latter, it never trickles down to the poor.

The dollar is not a scam. It is "our" MOE. The mismanagement of the dollar is the scam. That scam could be eradicated almost instantly by properly managing the MOE. That means recognizing it for what it is: "a promise to complete a trade". That means guaranteeing INFLATION is zero ... not trying for 2% and achieving 4%. That means money is in "free" supply ... always ... everywhere. Trading promises must always be recognized ... as must trader integrity.

Todd Marshall
Plantersville, TX

Thu, 04/17/2014 - 13:08 | 4670006 novictim
novictim's picture

Was that a filibuster or what?  Todd, I might have time to respond later you are going to have to address the New Deal to the 1970s and why you think that period was bad for workers in the USA.  'cause that was the period of Keynesianism.  Then came the Peanut farmer and the Actor and the rest of 'em.

You might want to look into what FDR did that was so awesome for TEXAS...FDR/Keynes saved the American people and Texans from deadly poverty and the shame of joblessness.  And in the bargain it built this country.  And now we have forgotten our past and what worked and oligarchs are selling you your very ideas.

One more thing though before I go:

"Supply side would work better if a "bubble up" proposal were offered rather than a "trickle down" proposal. "

Keynesianism is all about "bubble up".  Bubble UP is the key feature of Keynesian economics.  Keynes called for consumers and consumer wealth to be the focus of economic policy and of economic growth.  We have not seen Keynesian economics since the 1970s and we need a revolution to bring it back.  Seriously, we will need armed folks to fight the paid lackeys of the Super Rich before we ever see Keynesian policies again.

You've been fed a pack of lies and free market nonsense and no longer know what is in the interest of the working American.

Thu, 04/17/2014 - 13:14 | 4670026 Pickleton
Pickleton's picture

"You might want to look into what FDR did that was so awesome for TEXAS...FDR/Keynes saved the American people and Texans from deadly poverty and the shame of joblessness."

 

If it was possible to exhume FDR and suck him off, you've figured out how to do it. Meanwhile, back in reality, Mellon (FDR's treasury secretary) correctly noted that FDR's policies were a f.a.i.l.u.r.e.

There's a reason that depression was called 'GREAT' and the blame correctly resides with that farking moron FDR.  Oh, and mouth breathers like you

 

Thu, 04/17/2014 - 13:44 | 4670093 novictim
novictim's picture

First, "brave on you" for coming out with such a ridiculous position.  Seriously, that will help everyone understand where you are coming from.  Which I think is somewhere inside the Kremlin.

The USA was a failure?  From 1940 to 1970?  Really?  

How old are you that you don't know how wrong that is? Oh, that is right.  You are a Russian.  Carry on.

 

Thu, 04/17/2014 - 12:59 | 4669975 RichardParker
RichardParker's picture

"Keynesianism is a fraud. Supply-siderism is a con. The dollar is a scam. All were developed by people with good intentions."

Bullshit. They knew. This is control.

Thu, 04/17/2014 - 13:39 | 4670100 10PastMidnight
10PastMidnight's picture

"Developed by people with good intentions", are you fucking serious?

 

"Developed by people wishing to enslave everyone not in the club" you meant, i'm sure.

Thu, 04/17/2014 - 14:41 | 4670344 BeerMe
BeerMe's picture

Keynes never had good intentions.  It was all about rebellion.

Thu, 04/17/2014 - 18:44 | 4671144 novictim
novictim's picture

Again, this is supposed to be about Keynes and not your childhood.

If you want to study Keynes and see his works then you focus on the Period in which his policy reigned.  During this time, WW2 to 1970s, the norm was a single parent working to support a family.  

When the country needed more infrastructure and lowered unemployment as well as investment in new technology by the private sector, Keynesian policy make these things happen.  That is the truth that the angry oligarchs don't want you to realize, Beer.

BTW: Best Beer in the World is Anderson Valley Oatmeal Stout.

 

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