WE SEEM TO HAVE FORGOTTEN THE TRUE HISTORY OF KEYNESIAN ECONOMICS...
KEYNES SOLVED HIS ECONOMIC PUZZLE IN THE 1930'S FOR "FULL EMPLOYMENT"...AND TO "REOPEN" THE FACTORIES...BECAUSE THAT WAS THE JOB HE WAS GIVEN... UNEMPLOYMENT WAS THE BIG ISSUE THEN...
BUT CONSIDER:
PEOPLE WILL NOT SPEND MONEY UNLESS THEY HAVE SOME BASIC INFLATIONARY EXPECTATIONS... IF PEOPLE BELEIVE THAT DEFLATION WILL OCCUR THEY WILL SIMPLY HOARD MONEY AS IN THE EARLY 1930'S...AND NOW...
YOU SIMPLY MUST RESTORE INFLATIONARY EXPECTATIONS...THAT WAS THE DIRTY LITTLE SECRET OF KEYNESIAN ECONOMICS...
BACK IN THE 30'S AMERICA WAS THE FACTORY FLOOR OF THE WORLD...SORT OF LIKE CHINA IS NOW.
SO, KEYNES WAS LIMITED IN HIS GOALS AND HIS EXPECTATIONS TO GETTING THE LABOR MARKET BACK ON TRACK...AND RE-OPENING THE FACTORIES IN THE US, ENGLAND AND EUROPE...
BUT LABOR AND FACTORIES ARE NOT THE FOCUS OF WESTERN ECONOMICS NOW... ASSET INFLATION IS...STOCKS, BONDS, REAL ESTATE...
IF KEYNES WERE ALIVE TODAY...HIS THEORY ON ECONOMIC REVIVAL...
(ON REVIVING THE "ANIMAL SPIRITS"... I WOULD CALL IT...INFLATIONARY EXPECTATIONS...)
....CLEARLY WOULD DICTATE THAT THE GOVERNMENT BUY UP ASSETS...STOCKS AND REAL ESTATE !! TO RESTORE THE ASSET BUBBLES....
AFTER ALL THAT'S WERE THE ORDINARY PEOPLE GET THEIR MONEY TO SPEND...NOT FROM JOBS OR WAGES...WHICH HAVE BEEN VERY PUNK SINCE ABOUT 1975!!
AMERICANS AND BRITS HAVE MADE THE TRANSITION FROM A PRODUCTION/LABOR BASED ECONOMY TO AN ASSET/SPECULATION BASED ECONOMY...
OUR ANIMAL SPIRITS COME FROM ASSET SPECULATION .... NOT "GOOD JOBS" WITH HIGH WAGES.... THAT MOJO HAS MOVED TO CHINA...CHINA STILL HAS THAT 20TH CENTURY LABOR BASED ECONOMY THAT THE US AND PARTS OF EUROPE HAVE "GROWN OUT OF...!!"
BRING BACK THE ASSET BUBBLES... SPEND ALL THAT PRINTED GOVERNMENT MONEY ON STOCKS AND REAL ESTATE...AND FORGET ABOUT THE "ROAD BUILDING JOBS" BULLSHIT OF THE NEW DEAL...!!
I HAVE A HUNCH THAT WE ARE ABOUT TO MAKE AN ECONOMIC MISTAKE...ABOUT AS BAD AS THE MISTAKE THAT GOT US INTO IRAQ!!
BECAUSE WE HAVEN'T BEEN THINKING STRAIGHT IN HIGH PLACES FOR A LONG LONG TIME...AS HAS BEEN ALL TO OBVIOUS TO ANYONE WATCHING PERFORMANCE LATELY!
SO BRING PLUNGE PROTECTION OUT OF THE CLOSET NOW!! ON MONDAY!
REFLATE THE ASSET BUBBLE...! ANNOUNCE THAT WE ARE REFLATING...
OTHERWISE WE ARE DOOMED...
THIS IS NOT THE 1930'S REDUX...!!
