A FEW PEOPLE ARE NOTICING THAT THE KEYNESIAN SOLUTIONS TO US ECONOMIC PROBLEMS "AREN'T WORKING"...
WHERE ARE THE JOBS...? WHERE IS THE STIMULUS...?
WELL...THERE ISN'T ANY...AND IT'S NOT GOING TO WORK THIS TIME... HERE'S WHY?
KEYNES SAID THAT STIMULUS AND DEFICIT SPENDING WERE ONLY TO BE USED DURING DOWN TURNS IN THE ECONOMY...AND THAT DURING "NORMAL" TIMES SURPLUSES WERE TO BE ACCUMULATED...
WE DIDN'T DO THAT THIS TIME IN THE US....
THE US ECONOMY WAS ON A CONSTANT DIET OF EASY MONEY AND DEFICIT SPENDING STIMULUS FOR THAT LAST 20 YEARS...!
WHY? PROBABLY TO "PROVE" THAT THE 401K WOULD 'WORK'...AND OF COURSE, WALL STREET AND THE RICH LOVED IT WHILE IT LASTED...SELFLESS FOLKS THAT THEY ARE!
NOW THE EFFECTIVENESS OF "DEFICIT SPENDING" TO STOP A DEPRESSION IS LESS...INDEED, MAY BE NEGATIVE AND HYPER-INFLATIONARY...
SO DON'T EXPECT MUCH FROM THE OBAMA PLANS... THEY SIMPLY WON'T WORK...
BUT REPUBLICANS NEED TO REALIZE THAT THEY WERE THE CAUSE OF THE CURRENT MESS...FROM RAY-GUN TO THE BUSH FAMILY FIASCOES... REPUBLICANS BEAR THE BLAME FOR THE PRESENT STATE OF AFFAIRS...
AND IT IS DOUBTFUL THAT AFTER THE COMING "OBAMA FAILURE" THE AMERICAN PEOPLE WILL FLOCK BACK TO REPUBLICAN LOOTING AND TAX CUTS FOR THE RICH...
AND BESIDES THE BOND MARKET SIMPLY WILL NOT TOLERATE MUCH MORE "KEYNESIANISM" OR "SUPPLY SIDE BULLSHIT" FROM WASHINGTON.
SO WHAT'S NEXT...?
PROBABLY A TYPE OF SOCIALISM... A MANAGED ECONOMY...
NOT UNLIKE THE "MANAGED MARKETS" WE HAVE HAD FOR SO LONG WITH THE FED CONSTANTLY "GOOSING" WALL STREET AND ASSET PRICE BUBBLES...
CLEARLY, THE "OWNERSHIP" OF AMERICAN COMPANIES BY THE GOVERNMENT IS ALREADY CONTINUING APACE...!
MAKE NO MISTAKE THIS IS SERIOUS...AND UNSOLVABLE BY CURRENT POLITICS AND POLICIES...
THE REPUBLICANS ARE A BAD JOKE ECONOMICALLY...
AND OBAMA IS UNWILLING TO "GO FAR ENOUGH" TO SOLVE THE REAL PROBLEMS...
AT LEAST SO FAR... WATCH FOR A STRONG SHIFT TO THE LEFT IN AMERICA AS PEOPLE REALIZE THAT THE SITUATION IS GETTING MUCH WORSE...
THE "NEWS" WILL PROBABLY BE BROKE TO AMERICANS IN THE UNEMPLOYMENT NUMBER WHICH COULD SOAR TO DEPRESSION LEVELS OF 15% BY THE END OF THIS YEAR...WITH THE "REAL RATE" AT OVER 20% OR MORE...!
SIMPLY PUT AMERICA IS A POST-KEYNESIAN ECONOMY AT THIS POINT...
OR ANOTHER WAY OF PUTTING IT: "A BASKET CASE!"
