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Keynes Is Dead (and We Are All "In The Long Run" Now)
Submitted by Bill Bonner via Bonner & Partners (annotatd by Acting-Man.com's Pater Tenebrarum),
Fools or Knaves?
[ed. note: this article was written shortly before the ECB decision was announced, so the deposit facility rate mentioned in it is still the old one; it has been reduced to – 30 bps in the meantime]
BALTIMORE – Thursday is the big day. Mario “whatever it takes” Draghi is expected to goose up stock markets with more stimulus measures. On the table is more QE… and further cuts to the key lending rate.
The good Lord adds jerks to the mix to keep things interesting … we’re happy to report the operation was a success. It may actually have been a tad too successful.
The Chinese feds are also supposed to come forward with another gift to asset holders. According to the Wall Street Journal, the expectation is for something targeting property purchases and another interest rate cut (which would make it cut No. 7 since last November).
China’s central bank administered one-year benchmark lending rate – click to enlarge.
And yesterday, Fed chair Janet Yellen told the Economic Club of Washington:
“Were the FOMC [the Fed’s policy setting committee] to delay the start of policy normalization for too long, we would likely end up having to tighten policy relatively abruptly to keep the economy from significantly overshooting both of our goals. Such an abrupt tightening would risk disrupting financial markets and perhaps even inadvertently push the economy into recession.”
In Europe, Asia, and America, central bankers, we are told, have the situation in hand. But these policies – in fact ALL central bank policies for the last 30 years – are either a mistake or flimflam.
Purveyors of flim-flam: the world’s leading central bank bureaucrats
They are perpetrated by either fools or knaves… depending on how you look at it…and they are either an intentional transfer of wealth from the people who earned it to the world’s elite insiders. Or the transfer of wealth is an unintended consequence of botched policy.
We lean toward the larceny explanation.
QE may have been a mistake when it was first tried by Japan 20 years ago. But after so many years of trial and error, we now know how it works: It takes wealth from some people (mostly middle-class savers) and gives it to others (mostly wealthy speculators).
This is a problem. Because we know from both theory and experience that trying to rob the rich to make the poor better off doesn’t work. The rich duck and dodge. And the poor lose the incentive to make it on their own.
Now, we’re discovering that the opposite approach doesn’t work either. You can’t rob the poor, give to the rich, and expect the economy to improv
Already, the European Central Bank’s key lending rate is MINUS 0.2%. We have been amazed and befuddled by these negative rates for a long time. They suggest an impossibility: That the value of money is less than nothing.
And if that is so, the value of everything money buys – including labor – must also be less than zero…which is such a strange and preposterous thought that it can’t be correct.
But after a few nights of light meditation and heavy drinking – aided by insights from Charles Gave, the chairman of Gavekal Research – we think we have a better understanding of it.
A knave stealing tarts.
An Affront to Nature
First, says Charles, negative rates are an affront to nature… and an insult to the gods. Money today is inherently worth more than the same amount of money a year from now. Because something could happen in the intervening period.
Someone else could buy the house you wanted. The borrower might die and not pay you back. Or you might die, without ever seeing your money again. That’s why lenders need to be paid for the risk that something will go wrong…
Meanwhile, the Old Testament tells us that God chased Adam and Eve from the Garden of Eden, with this curse: From now on, “you will earn your bread from the sweat of your brow.”
Adam and Eve are getting the boot in this painting by Benjamin West. No more lazing about in the Land of Cockaigne … it’s sweat of the brow time, baby!
But the goal of central bank demand management is to upset God’s applecart. The feds want people to consume their bread before they even put on their work gloves.
In the long run, this clearly won’t work. Spending credit is essentially spending someone else’s money. And sooner or later you will run out of other people’s money.
Lord Keynes – from whom the feds draw inspiration – said not to worry. In the long run, he said, we’re all dead anyway. Keynes is dead. And we are in the long run now.
Keynes is dead – unfortunately his etatiste nonsense didn’t expire with him. Meanwhile, the long run is catching up with those who have so far failed to die.
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Unexpected outcomes for everybody........
John Maynard Keynes may be dead
But his spirit lives on in the Fed
Forget the rigged Dow
The long run is now
Systemic collapse straight ahead
Long live the von Mises and Rothbard "Austrian" way!!!
https://mises.org/
I'm tired of waiting. Bring it on already!
Keynes, of the Baffle-them-with-Bullshit school of thought?
"On a long enough timeline..." Keynes' baffle-bullshit survival rate is not zero.
And he will never die coz baffle-bullshit jawboning kept him alive for an aweful long time.
Unless central planning dies, no?
We are all tired of waiting, SuperRay. That's why everyone on Z/H has been bitching since inception of this website. I always thought I had the patience of Job, but this is playing out on God's terms IMHO.
http://beforeitsnews.com/conspiracy-theories/2015/12/road-to-ww3-time-to...
I'd gladly pay you Tuesday for a hamburger today.
Keynes was a homosexual and a pedophile as per the wiki of the day. This was back when homosexuality was defined as a mental disorder.
According to the American Psychiatric Association, until 1974 homosexuality was a mental illness. Other psychiatrists wrote copiously on the subject, and homosexuality was “treated” on a wide basis. There was little or no suggestion within the psychiatric community that homosexuality might be conceptualized as anything other than a mental illness that needed to be treated. And, of course, homosexuality was listed as a mental illness in DSM-II. (The DSM – Diagnostic and Statistical Manual – is the APA’s standard classification of their so-called mental disorders, and is used by many mental health workers in the USA and other countries.)
Then in 1970 gay activists protested against the APA convention in San Francisco. These scenes were repeated in 1971, and as people came out of the “closet” and felt empowered politically and socially, the APA directorate became increasingly uncomfortable with their stance. In 1973 the APA’s nomenclature task force recommended that homosexuality be declared normal. The trustees were not prepared to go that far, but they did vote to remove homosexuality from the list of mental illnesses by a vote of 13 to 0, with 2 abstentions. This decision was confirmed by a vote of the APA membership, and homosexuality was no longer listed in the seventh edition of DSM-II, which was issued in 1974
What’s noteworthy about this is that the removal of homosexuality from the list of mental illnesses was not triggered by some scientific breakthrough. There was no new fact or set of facts that stimulated this major change. Rather, it was the simple reality that gay people started to kick up a fuss.
Explain to me why anyone would pay attention to the opinion of the American Psychiatric Association about homosexuality before 1974? You appear to think that it began being wrong at that point.
That is such a cop out.
It was a non political institution that made scientific judgements on these issues. It was only until groups like gays politisized them.
Looks like once the liberals allow lamic law to take hold with their tolerance docterine homosexuality won't be an issue.
It's against islamic law to be homosexual.
Plenty of buildings greater than 1 story in San Francisco.
ISIS Executing Gay Men By Throwing Them Off Buildings.
http://www.dailymail.co.uk/news/article-3198283/Horrific-moment-two-gay-...
Im not saying being gay is wrong. I am just stating the facts. Gays are not normal. It is a mental disorder. Period. Promoting it as normal is stupid and wrong
On a long enough timeline......
I laugh maniacally over my new invention, the Keynes-o-tron. It generates unlimited free energy for one hundred years, then explodes, rendering the Earth uninhabitable.
That's what the chick said about my joint....
Soros and Kissenger is up for the dirt nap.
common Soros is way worse then Kissinger. Soros is truely the devil.
But Ray Kurzweil says the Singulairty is just away and will change all that mortality stuff...
https://en.wikipedia.org/wiki/Technological_singularity
I'm starting a pool on the date Kurzweil kicks. The singularity is gonna be for insiders only. Imagine Larry summers forever. No go clean your pants.
I pick June 23, 2031. He'll be 83 and look 103.
And now, in the short-run most are all screwed as they wait for their ultimate expiry.
keynes conceeded adam smith was right on his deathbed
funny how death can bring out the truth in people
Care to post a citation? Or is this just another urban legend spawned by the LV Mises supply-side fanboys?
Not so fast, kids. Let's not forget that Larry Ellison is still working on a cure for death, since the concept of dying just doesn't make sense to him.
All he needs to do is ask Soros, Buffet, or Rockefeller. The oligarchs all fine on baby's blood for immortality.
Just need the ESCs: https://en.wikipedia.org/wiki/Embryonic_stem_cell
I expect this will even fix stupidity. Or not.
Why would the leaders of the" free" world base their economy on the reckless Keynes , who was a known degenerate and pervert par excellence?
Will you guys get over the 'degenerate' bit? Who cares? The man's quality of thought is the problem, not who he fucked or how. That doesn't take down nations, but thoughts do. Hitler, Stalin, Mao, and at least 95% of leaders are straight, whereas a few are like Alexander. I doubt you can tell who is who just from thoughts or accomplishments.
Back to the problem. The leaders of the 'free' world love Keynes and have resurrected his ideas several times. Keynes gives them reasons for spending money on anything at all, borrowed or created is all good. Those flows of $ can be used to buy political support.
Limited government can work, the problem is keeping it limited. It takes better push-back than the Constitution provided. I like the idea of any citizen being entitled to treat any violation of their civil rights by a public official (the only people who can do that in a world of private property) as a threat of death. Over-reaction is a good QA process if you wish to reach 6 sigma.
>>>
I like the idea of any citizen being entitled to treat any violation of their civil rights by a public official (the only people who can do that in a world of private property) as a threat of death.
<<<
That's a bit harsh on the official, who is probably only a minor player obeying orders from those many levels above.
To be constructive: How about changing the Constituation such that obtaining x% of the electorates vote on a proposal law forces that proposal
to be subject to a national _binding_ referendum within the next 90 days?
Watson
Since no government that I am aware of has ever repaid deficit finance in the bad times with surpluses in the good times, Keynes's theories have never, actually, been tested.
He freely admitted that even if the repayments took place as described, there would still be a bias to inflation.
He just thought that the inflationary bias was an acceptable alternative to repeated depressions that caused a great deal of human misery.
The problem is that his name has been used to justify permanent deficit financing by politicians who are too scared of the consequences of forcing the electorate to realise that it has been living beyond its means.
Basically, the fault is not Keynes's, but ours, for our voting choices.
Watson
So we are supposed to go back to the gold standard and self-regulating banks? Or do we have to go back to barter? What about credit? Should we get rid of that too? The anti-Keynesians never seem to have a clear explanation of how a modern high-tech economy is supposed to operate without government regulation.
Its very simple. You let a physical only gold market float marked to market. This is why gold is on line one of the ECB's balance sheet on the asset side. The Euro was built to take over after the dollar failed. And the ECB marks its assets to market every quarter while the Fed holds promisary gold notes from the UST market at $42 an ounce while they molest the hell out of the paper/physical gold price.
http://fofoa.blogspot.ca/2011/07/euro-gold.html
You raise several questions.
For credit:
Model is the old Bundesbank.
Rate-setting power in the hands of those who are genuinely independant of gov and corp, with appointments that cannot easily be cancelled, with a _single_ mandate of setting rates so as to have a target rate of inflation of _zero_. [And not to be scared about undershoot (negative inflation), either]
For bank regulation:
Model is the old Bank of England: As a banker, you are scared of the old BoE because it can [and will] take away your banking licence if you mis-behave.
As an owner (bank shareholder or partner) you are scared of the BoE because although it may be prepared to 'rescue' a bank, it does so purely to protect UK banking in aggregate - it does not care if you are wiped out providing another player takes you over for 1c to keep the system intact. And it makes it very clear that any protection of depositors is down to government - so depositors are cautious too.
Watson
Excellent. Remember the only reasons we have "inflation targeting" was that it was invented when rates were 16+%, the idea of the target was to get it down, not goose it up. And remove the Fed "dual mandate". And of course "zero" is a very very good target. Um, uh, that would mean we could um, uh, build wealth based on productivity and labor, what a concept.
I thought Keynes said, in surplus times,z save for a rainy day, not this shit.
Shit is gonna get interesting...
Sugar Keynes
http://www.knology.net/~bilrum/keynes.htm
Free market banking, free market lending, free market money, free market everything. The antifragile, dynamic system that self corrects so quickly you barely notice, when there is a local imbalance resulting from a changing world.
If Keynes had known his followers were going to take everything to the extreme he never would have said half the shit he said.
Draw your own conclusions about Jesus
"Open up the gates of the church and let me out of here
Too many people have lied in the name of Christ
For anyone to heed the call
So many people have died in the name of Christ
That I can't believe it all . . ."
From the early 70s, CSN's "Cathedral"
"But the goal of central bank demand management is to upset God’s applecart."
"Keynes is dead – unfortunately his etatistenonsense didn’t expire with him. "
Bwahaha ROFL LOL. Pot, meet kettle.
That fucking piece of shit. I'm going to find his grave so I can take a piss on it. I have children and potentially grand children.
Fuck... landfill application it is...
Keynes would be surprised at a deficit of 2.5% GDP six years into "recovery." So what we have is "worse" than Keynes.
All the knee-jerk (and straw-man) Keynes-bashing around here is getting tiresome. Keynes never said the financial sector and 0.01% should be bailed out in perpetuity and totally exempt from the law or consequences for breaking them. He also never said that deficit spending and/or low interest rates were ALWAYS a good idea --just during contractionary periods (depressions/recessions), after which the government/Fed should curtail spending and increase rates.
The real historical Keynes does not at all resemble the distorted caricature projected onto him by all the free market fundamentalists and L.V. Mises fanboys.
You should blame the Neo Keynesian acolytes who do all these things in his name then.
...we know from both theory and experience that trying to rob the rich to make the poor better off doesn’t work....Now, we’re discovering that the opposite approach doesn’t work either. You can’t rob the poor, give to the rich...
That concisely explains why only repect for earned private property will work.
I rather liked the
conclusion to that:
One important thing that has CHANGED has been the exponential progress in physical science and technology. Another important thing that CHANGED was due to the ways that enabled the exponentially increasing strip-mining of the natural resources of a fresh planet, that had never before been subjected to exploitation by those sorts of technologies, enabled by that kind of progress in physical science.
What has NOT CHANGED is that human beings and civilization STILL operate as entropic pumps of environmental energy flows, through systems of more or less organized lies, operating robberies. Furthermore, as long as any human beings survive, that will ALWAYS STAY necessarily the same fundamental basis for any human activities, and indeed, for any other living beings.
In my view, the various "debates" that are frequently presented between so-called Keynesian versus Austrian school economics, etc., all operate within taking for granted the biggest bullies' bullshit world views. There is only one energy, and there is only one general energy system. Through human beings, that operates according to the principles and methods of organized crime. The various labels that various people use to describe variations in the ways that human beings and civilization operate tend to all be bullshit, designed to conceal and bury under bullshit what is really happening.
Theoretically speaking, what human beings and civilization should do to change to adapt to the hyper-complicated feedback loops between the natural environment, as the source of the environmental energy flows, and the manner in which those human beings and civilization can act as entropic pumps of those energy flows. Basically, what human beings and civilization both should and must do is develop different evolutionary ecologies, within the overall hyper-complicated realities of the combinations of environment and technologies.
HOWEVER, the biggest obstacles to do that are due to natural selection pressures driving the human artificial selection systems to become most socially successful by becoming based on the maximum possible frauds and deceits, through the history of successful warfare based upon backing up deceits with destruction morphing to become successful finance based upon enforcing frauds.
So-called Keynesianism became intellectual developments that were cherry-picked by the banksters in order to appear to be able to justify and rationalize the ways that the banksters made and maintained systems whereby governments enforced those banksters' frauds. While I think that the Austrian school was slightly more realistic, that still did not penetrate more deeply into the issues of how human beings and civilization are manifestations of thermodynamics and information theory, which developed to become Wonderland Matrix Bizarro Worlds, which publicly presented everything in absurdly backward ways, such as how arbitrary minus signs were inserted into the entropy equations, in ways which inverted the meaning of everything, because everything was being done by the biggest bullies, who were able to promote their bullshit as the dominant social stories.
The international bankers were the biggest gangsters, that captured control over governments, through vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS. The banksters' bullshit about political economy has dominated everything that became publicly significant, including all of the various intellectual theories, from communism to capitalism, and every other variety of the ways that people rationalize and justify that they operate as gangs of robbers within their environment, as soon as one perceives that as separated from their environment and each other.
The banksters' systems of government enforced frauds appear to make "money" out of nothing as debts. That only works to the degree that the debt controls are backed up with the death controls, within the overall context that money is measurement backed by murder, as the most abstract form of private property being claims backed by coercions. ALL of those activities by human beings and civilization have ended up being publicly justified and rationalized by various sorts of BULLSHIT, which are almost ALL based upon presenting everything in absurdly backward ways, which is how and why we have ended up living inside of an increasingly Wonderland Matrix Bizarro World. Social systems based upon backing up lies with violence, becoming more sophisticated systems of legalized lies, backed by legalized violence, which have accumulated in the political economy becoming based upon governments ENFORCING FRAUDS by privately controlled banks, are the SOURCE of "An Affront to Nature."
Social pyramid systems based upon being able to ENFORCE FRAUDS require almost everyone deliberately ignores the principle of the conservation of energy as much as possible, while simultaneously misunderstanding the concept of entropy in the most absurdly backward ways possible. Since human beings and civilization necessarily operate as gangs of robbers, they have necessarily developed the most elaborate BULLSHIT possible to bury those realities, under the language of dualities, based upon false fundamental dichotomies and the related impossible ideals.
ALL of the various publicly significant theories of economic activities operates within some versions of the biggest bullies' bullshit world views, whose social successfulness was based upon deceits and frauds. Since human beings must necessarily live as gangs of robbers in their environment, those who were the best organized and biggest gangs of robbers are those who dominate the currently existing civilization, and their bullshit social stories dominate all public discussions of what is happening, since their bullshit world views were built into the dominate natural languages and philosophy of science.
Therefore, all of the various "debates" regarding the merits of Keynesian economics appear to me to be drowning in bullshit, and that includes all of the various alternative views that I am aware of being at all publicly significant. In that context, the article above was typical in the ways that it presented a superficially correct analysis, with its valid points being like the tips of an iceberg, sticking out of the water, the deeper analysis of which is never considered, in order to connect the entire ocean, through its various phases of solid, liquid and gas (not to mention other more exotic phases, which are theoretically important in order to understand that ocean of energy.)
Theoretically speaking, we should be attempting to understand human beings and civilization as general energy systems, through using unitary mechanisms regarding how that energy flows through entropic pumps. HOWEVER, all of the most dominate systems have developed to become intensely paradoxical, and manifest sets of consistent contradictions, due to their social successfulness having become combined money/murder systems that operate through the maximum possible frauds/deceits. Those are consistent contradictions because of the ways that successful warfare became based on deceits and treacheries, which then became the foundation of successful finance based on governments ENFORCING FRAUDS by privately controlled banks.
In general, the mainstream mass media NEVER recognize or discuss those social facts at all! On alternative news Web sites like Zero Hedge, those social facts are somewhat admitted and addressed, but still in only relatively superficial ways, which are correct, in the sense that those who are describing the tips of an iceberg can be correct, without discussing how most of that iceberg is submerged, and all of that is the same water.
In my view, the primary reasons for WHY "the long run is catching up with those who have so far failed to die" are that the accumulating socialized losses are becoming greater than the previously privatized profits. The longer term consequences of operating civilization through fundamentally fraudulent financial accounting systems are more and more overall overwhelming the abilities of people to deliberately ignore and misunderstand what they were really doing.
https://soundcloud.com/doomstead-diner/collapse-cafe-steve-ludlum-part-1...
Collapse Cafe - Steve Ludlum Part 1 (Fundamentals)"Money" made out of nothing as debts was being used to "pay" for strip-mine the planet's natural resources. It was always IMPOSSIBLE for there to be endless exponential growth. Neither the whole solar system, nor the whole galaxy, could sustain endless exponential growth. Rather, one way or another, sooner or later, different systems of death controls develop to make and maintain evolutionary ecologies, which change to adapt to their limits. In the case of human beings, that means the development of the hyper-complicated relationships between the technologies that can operate as entropic pumps, and the environmental energy flows that enable those to work. Those have developed through social pyramid systems where the ruling classes use dishonesty backed by violence to control those they rule over by thereby keeping them ignorant and afraid. Those social facts severely limit whatever we might theoretically do to resolve our chronic political problems!
The manifestations of ZIRP and NIRP are taking place within fundamentally fraudulent financial accounting systems, based upon governments enforcing frauds by privately controlled banks, in ways which are publicly based upon those being based on the maximum possible bullshit stories about what they are doing, which are as absurdly backwards as possible. It is extremely difficult to fix any of those political problems, if not practically impossible within their own frame of reference, because the long history of financial successfulness based upon ENFORCING FRAUDS, which has roots in Neolithic Civilization going back thousands of years, has resulted in society being almost totally dominated by the best available professional hypocrites, who present everything they are doing through the dualities of false fundamental dichotomies and impossible ideals, which are as absurdly backwards as possible, due to their successfulness always having been based on the abilities to ENFORCE FRAUDS, which are the central social facts that they most deliberately ignore, and never admit, because they are who they are because they were the best available professional hypocrites.
At the present time, the figureheads that are representing the central banks are the currently best of the best professional hypocrites. However, at the same time, since there is almost nothing but a core of organized crime, surrounded by layers of controlled opposition groups, the only publicly significant "opposition" to the central bankers are also various sorts of professional hypocrites, due to the degree that they also stay within the same overall bullshit frame of reference ...
In my view, the article above was certainly CORRECT:
HOWEVER, it does NOT lean ENOUGH toward the larceny explanation. As soon as we perceive and define human beings as separate from their environment and each other, then they NECESSARILY live as gangs of robbers. The banksters became the best organized gangsters, whose effective control over governments, which are the biggest forms of organized crime, enabled the situation to develop where governments enforce those banksters' frauds, as forms of legalized symbolic robberies.
Everyone necessarily lives as entropic pumps of environmental energy flows. However, civilization developed to rationalize and justify doing that with the dualities of false fundamental dichotomies and the related impossible ideals. Hence, the banksters' figureheads in the central banks are presiding over those institutions which are the Kings of Fraud, by those figureheads acting as the best available professional hypocrites regarding what they are really doing.
At the same time, the degree to which the biggest bullies have dominated civilization for such a long time, so that their bullshit world views dominate the ways that everyone thinks, results in the controlled opposition groups to the banksters STILL thinking using the same old-fashioned dualities. Due to that superficial analysis, that kind of controlled opposition therefore proposes superficial "solutions," which are bogus, because they continue to understand the real mechanisms at work in the most absurdly backward ways, while still taking that almost totally for granted.
"Meanwhile, the long run is catching up with those who have so far failed to die." The excessive successfulness of controlling civilization through applications of the methods or organized crime has resulted in civilization becoming runaway criminal insanities. Too bad, so sad, but since civilization is so totally dominated by professional hypocrites, BOTH in the core its organized crime (bankster controlled governments), AND in the surrounding layers of controlled opposition groups (pretty well all religions and ideologies), there are no reasonable hopes for the foreseeable future.
The strip-mining of the planet, "paid" for with "money" made of nothing, will continue to have its exponential growth spectacularly overshoot whatever might otherwise have been relatively more sustainable. Since social successes based on being able to ENFORCE FRAUDS never stops those FRAUDS from still being FALSE, civilization controlled in those ways is necessarily headed towards series of psychotic breakdowns, and crazy collapses into chaos, due to the constantly increasing pressures building, until series of severe social storms blow through.
@RM, are you familiar with the Maximum Power Principle? https://en.wikipedia.org/wiki/Maximum_power_principle
Because you talk about it constantly without ever actually naming it...
MPP is an extension to the Laws of Thermodynamics to account for what evolution demonstrates, that global entropy is increased faster by pockets of local order. Without concepts like MPP, it's hard to understand why life exists at all and energy systems don't just homogenize predictably and directly into useless heat.
Unfortunately, MPP suggests that any attempt to redirect human behavior, with an eye to sustainable & long term survival, is one that is doomed to failure. MPP creates a bias against "buffering" behavior which is why the only places you see it in nature are where there is simply no other option. Building a surplus for a long-term threat that may or may not eventuate is a biologically losing strategy and will be selected against. Building a surplus for a seasonal threat that happens reliably year in-year out, on the other hand, will be selected for.
Our technologies have empowered us to the extent that the threats we must buffer against exceed the bounds of our biologically selected buffering behaviors. Our doom is inevitable.
Keynesian economics was one attempt to establish artificial buffers, taking into account the horror of WW2 and the need to buffer against ourselves. The idea was simple enough, sock money away during economically prosperous times, then pull it out to support the economy during lean times. Keynes himself deplored the concept of deficit spending.
Fast forward to today and all critics of Keynes talk about is deficit spending when bagging him out, clearly having never actually READ Keynes. If Keynes were around today, he'd be appalled by the levels of debt, the imbalances in international trade and the power of banks. There's not a single Keynesian government to be seen in the OECD since Keynesianism went MIA in the late 1970's to be replaced by Bankster-driven Neoliberal Monetarism (ironically a close relative of Austrian Economics if you care to trace the ancestry of ideas), yet the language of propagandists is to redirect anger against a fictional target (Keynes) when the real enemies are Banksters. The closest you'll get to Keynes in today's world is Norway with its SWF, and wouldn't the banksters love to get their hands on that!
In keeping with MPP, the Keynesian experiment was doomed to fail. The idea of building a surplus could not survive greedy desires to spend for status, blow the surplus and keep spending into deficit (calling falsely on Keynes to justify this recklessness). Nothing about this is Keynesian because there is no "taking away the punch bowl" as Keynes demanded, and it's simply bullshit for people to call it such.
MPP predicts this outcome. While the tokens of human trade continue to be accepted as valid, such tokens will be used to lubricate exponential resource extraction to be converted into social status on the way to becoming junk. MPP demands selection for behavior that promotes breeding success and, for social animals, that means a great deal of social posturing, supported by stuff. The rate of change of entropy must be maximized, hence the rate provision of the tokens of trade must be maximized. This is why the Austrian School lives in a fantasy land with dreams of "sound money". Their ignorance of science is unsurprising given they are professed Praxeologists.
It would be a great thing if Keynesian economics was actually adhered to as Keynes originally outlined (which is to avoid deficit spending unless it's an emergency), but MPP suggests that this is a Physically unrealistic fantasy. What we instead get is Bankster compatible Neoliberal Monetarism, selected for its proven ability to support maximum spending to support Maximum Power enabled by credit backed by thin air. Building a surplus (as Keynes required) isn't on any radar anywhere.
The Austrians are even more doomed to failure than Keynes because they insist on "sound" money, thereby placing a rate limitation on Power production / resource exploitation by humanity. MPP says "NO WAY" which is why the Gold Standard had to fail in the end. It could never survive the onslaught of technological innovation and the exponential status-seeking (resource consumption) this technologysupported. Entropy must increase as fast as possible and if the nature of money gets in the way of that, then the nature of money will be changed.
Never underestimate the effect of sexual selection on human behavior (you do tend to focus on natural selection which is not an error, but needs complementation). Why do the top 20 richest people in the world never rest easy? Why do they always want more? Why do peacocks have such ridiculously big tails? Because status is always relative, has no upper limit and we are only here today because the genes of our ancestors were selected for MOAR! Entire armies of men will be smashed against one another, cities annihilated in atomic fire, resources milked dry from the planet, because of two mens' innate desire to be #1, resulting from nothing more than a primitive urge to win the females, an urge that drives their neurochemistry and decision making.
Why does Donald Trump wear a toupee? I don't see an object of ridicule, I see something to be afraid of, VERY afraid of.
If I had to sum up our main point of difference it might be this. You seem to suggest that the "biggest bullies" have created this system voluntarily and if we were to rise up and challenge them, as a more enlightened group, things could be different. I suggest that the "biggest bullies" are simply natural sock-puppets filling a role that nature created for them (and always will create).
Depressing as it may sound, if MPP is truly a Law of Thermodynamics, then there likely isn't abundant advanced intelligent life out there (which is why we see no evidence of it). Instead it all races exponentially into its own annihilation in the service of Universal Heat Death while a few Cassandras (like us) wish, futilely, that it could be otherwise.
You see money as "measurement backed by murder". I see money as a measurement of social power, status that can indeed be attained by killing but typically isn't. Because social power (money) is meaningless without society, the dominant must have masses of lesser living beings to feel their worth. Money reflects past application of myriad factors that enhance social power of which violence and lying are amongst many others (it's not just backed by murder, consider measurement backed by charismatic persuasion).
Money is power (with a lower case p). As simple as that. It is the collision between Power and power, one limited by Joules, the other infinite by fantasy, using a single money to transact in both, that defines our doom.
Yes, Mediocritas, I was familiar with the MMP, (you pointed it out to me previously.)
http://www.doomsteaddiner.net/blog/2015/04/06/ongoing-commodification-of-the-commons/
Life is a succession of unexpected shortages, and the winner is always the one who burns most energy, according to the MEP principle, Maximum Entropy Production, aka 3rd Law of Thermodynamics, according to F. Roddier & R. Dewar, or the simpler MPP, Maximum Power Principle, as described by Jay Hanson.
When one applies the basic concepts of energy systems to human systems one discovers that, both empirically, as well as theoretically, human civilizations are controlled by the most dishonest and violent people, and that civilizations follow the path of least morality, because civilizations are actually controlled by the biggest and best organized gangs of criminals, whose primary interest is to continue being able to enforce their frauds in each short-term increment, regardless of the longer term consequences from doing that.
While sexual selection has significant effects over the longer term, nothing else compares to the murder systems, as the pivotal events that determine the direction of the future. Various frauds become nothing more that amusing absurdities, unless those are enforced. E.g., the police have NO "charismatic persuasion," unless they can credibly threaten to beat up and kill people who do not obey them. Certainly it is correct that events most often follow through without resort to the ultimate violence in the form of murders. However, it is the credible threat of being killed if one does not obey that enables the lesser forms of "charismatic persuasion" to become effective.
Overall, for a long time I have been attempting to reapply the ways of thinking about biological evolution which endeavoured to do that through the concepts of general energy systems. Doing so with human beings becomes quite hyper-complicated due to the extreme intensities of possible feedback loops. But nevertheless, I continue to regard the best over-simplifications to be to focus on the death control systems, with the human murder systems as the most extreme forms of those.
A countries worth is based on the work out-put of its citizens. Why debate the merits of an ivory tower intellectual who liked to play with little boys pee-pees?
"Spending credit is essentially spending someone else’s money. And sooner or later you will run out of other people’s money."
Yeah, money made out of thin air. And when SHTF the the lenders get a tax payer funded bailout with money that needs to be borrowed from the same lenders who then again make it out of thin air. For a nice interest rate of course.