The American Empire in a Changing World


Monday, November 12, 2012

John Butler: ''The Keynesians’ New Clothes''

From The Daily Capitalist

''Since early 2010 I have been arguing in my reports against the core neo-Keynesian precepts of the economic and monetary policy mainstream. In general I have not been optimistic that, notwithstanding their abject failure to foresee the global financial crisis, and their ongoing, failed responses thereto, the mainstream would reconsider its views. But some interesting developments on multiple fronts indicate that they are doing just that. So does this represent the beginning of the end of the flawed neo-Keynesian policies that treat debt rather than savings as real wealth; consumption rather than investment as sustainable growth; and money as something to be manipulated to ‘manage’ the economy? Sadly, no. While they may realise that their policies are failing, what they are now contemplating is an even more radical programme of outright debt monetisation, wealth confiscation and vastly expanded central planning. Investors must take appropriate actions to protect themselves now, before such policies are implemented.''

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