The grip of John Meynard Keynes on our economic policies continues from the grave. For nearly 100 years we have been subjected to his fantasy that government can manage the economy more “efficiently” than the free market.
Despite being disproven over and over by actual results, the Keynesians continue to insist that, just given a bit more time and a lot more money, their theories really will work this time. It is reminiscent of (and not unrelated to) the Communists’ insistence that their ideology really would work if given a bit more time. (As if the 70 year debacle in Russia wasn’t enough time!)
The latest twist is “quantitative easing” by which the Treasury will print money to buy Treasury bonds. You heard that right… we are printing money to buy back our own debt. Kind of like writing a check to the bank to cover the previous bounced checks on the same account… yeah, that’ll work?!?
This is being done specifically and deliberately to cause inflation:
Only a desperate government would consider debasing its own currency. The resulting inflation will be an insidious tax on every American who will suffer as wages lag behind increasing prices. It is doubtful countries like China will react favorably to the precipitous drop in the value of the debt owed to them.
This strategy of monetary sabotage will punish savers and creditors, but Keynesians simply will not tolerate anything that impedes deficit spending. Since deflation hamstrings spending, they will stop at nothing to reverse deflationary pressures.
None of this matters to the “geniuses” who remain determined to impose their pet theories on the rest of us. They are going to prove they are right, even if they have to completely tank the economy to do it.
And in spite of the fact the government intrusion in the market was the root cause of the mortgage crisis; Keynesians continue to affirm that capitalism and central planning can co-exist. This is patently false. You can either have a centrally planned economy or a free economy, but not both.
Like all Keynesian economic theories, our mixed economy has failed in its real world application. It is unworkable because of the extreme market distortions caused by policymakers and regulators who continually demand more control to “fix” the problems their social engineering schemes caused in the first place. Justifications for more interventions are just excuses to incrementally takeover the economy and demolish any remnants of capitalism. And without capitalism there are no individual rights. Peter Raymond
This was the central issue in this week’s election and, despite their professions of post-election humility, this just shows that the Left still hasn’t gotten the message!