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.

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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

toys for tits's picture

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

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.

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.



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...

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.

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.

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.

RevRex's picture

but but but "Busch did it two"!


Both parties are the same!




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.  

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!

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. 

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.


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.

CH1's picture

Warren Buffet is a statist sycophant thief.

Neo's picture

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


Right after we get wet out of water.

LawsofPhysics's picture

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

get busy motherfucker.

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.

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. get busy motherfucker

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.

falak pema's picture

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

CH1's picture

Leave no incumbant in office.

Leave no office.

X_mloclaM's picture

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


....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."

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?



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.

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. 

achmachat's picture

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

Two-bits's picture

Just another day here in the Sims v14.4.17.

But there is a reboot afoot.

TeamDepends's picture

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

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.

Oh regional Indian's picture
  • The problem of leadership is inevitably: Who will play God?
    • Muad'Dib (From the Oral History)
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 ! 

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.

falak pema's picture

That is why Don Quixote is a classic.

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

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.


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.

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.

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..

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.

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


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?

Drifter's picture

3,756th article on this subject?

Getting a little boring.

Cognitive Dissonance's picture

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

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.

buzzsaw99's picture

every economic system and every economic theory is a fraud

PT's picture

Who pays the economists?

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