KEYNESIAN ECONOMICS WAS BASED ON LABOR AND WAGES...
THE RECENT BUBBLE ECONOMY IN THE US...WAS BASED ON ASSET INFLATION...AND NOT WAGES!
SO USING THE OLD FASHION KEYNESIAN "CURES" WILL NOT WORK IN THIS CASE...
INSTEAD OF "MAKING WORK" SO PEOPLE CAN GET MONEY TO BUY STUFF...AND THE THEREBY RE-OPEN THE FACTORIES (IN CHINA NOW)....
THE NEO-KEYNESIAN WILL REALIZE THAT RESTORATION OF THE ASSET BUBBLE IS THE WAY TO GO...
THE FED SHOULD SIMPLY BUY STOCKS...THE S&P AND THE DOW...PRIME THE PUMP OF THE STOCK SPECULATION THAT HAS BEEN THE LIFE BLOOD OF THE AMERICAN PEOPLE... THEN THE WORKERS WILL FIND JOBS IN THE PRIVATE SECTOR...WITHOUT THE NEED FOR "GOVERNMENT JOBS."
IN SHORT...WORK ON RESTORING THE ASSET INFLATION...
DON'T SUDDENLY REVERT TO THE 1930'S F.D.R. "SHOVEL JOBS" SOLUTION WHICH LIKELY WON'T WORK NOW...BECAUSE MOST OF OUR SHOVEL JOBS ARE DONE BY ILLEGAL MEXICANS THESE DAZE!!
KEYNES SAID THE GOVERNMENT NEEDS TO BE THE SPENDER AND BUYER OF LAST RESORT...
BUT THAT DOES NOT MEAN THAT IT'S LIMITED TO THE LABOR MARKET...AS KEYNES WAS IN THE 1930'S...
TODAY THE ASSET MARKET IS WHERE THE ACTION IS...OR WAS...NOT THE LABOR MARKET...!
A 1930'S KEYESIANISM SIMPLY WILL NOT WORK IN THE CURRENT ENVIRONMENT...
BERNANKE AND THE TREASURY NEED TO BUY STOCKS MASSIVELY ON MONDAY MORNING...
YES, GENTLE READER, BRING THE PLUNGE PROTECTION TEAM OUT OF THE CLOSET!! LET THEM STAND NEXT TO PAULSON AND BERNANKE...AND ANNOUNCE..."WE ARE BUYING AMERICAN STOCKS HAND OVER FIST!!"
IF THE PPT DOES THAT?...
THIS CRISIS WILL BE OVER WITHIN TWO MONTHS...!!
