Most Keynesian economists do not want to admit that we are in another depression. They find the word painful.
We’ve had an amazing run in the markets and many people think the bull will just keep on running. Maybe so. But eventually every bull runs out of steam even ones which are fed by the Fed.
Money isn’t wealth. It measures wealth the way a ruler measures length, a clock measures time and a scale measures weight.
Boy is this true, but so many people, including the supposed shamans at the Fed fail to grasp (or choose oddly to ignore) this basic concept. Dumping “money” into the economic system isn’t going to make the economy grow, it will only make the money currently in the system worth less.
It’s not quite that simple. But it’s nearly that simple.
Say what you want about gold but it has held its value for thousands of years. The fiat dollar? Well let’s just say its been a steady march toward becoming trash.
If we want a high value economy, if we want high value jobs, we should have “high value” money. Sound money. Gold backed money. We should have money which can’t be eroded at the whim of our central bank.
Dr. Paul introduced a truly small government philosophy to millions. The unassuming doctor from Texas, a Congressman long in the intellectual wilderness but consistent in message, has had arguably as much impact in this young century on American politics as any other American political figure. Politics is different today, and I would argue very much better, for Paul’s evangelizing.
Japan had “a lost decade.” Then it had another. We are past the halfway mark of the American “lost decade.”
Keynesianism has failed utterly and completely. It’s not that there wasn’t enough stimulus. It’s that the concept of “stimulus” is bunk. It’s real “voodoo economics.” It is a cult. A dream. And as is increasingly obvious even to the Keynesians, a nightmare.
This isn’t a surprise. We are still in the midst of a lingering depression/recession. People need to get by and retirement for many is down the road in hopefully more prosperous times. Right now the kids need shoes and school clothes.
The one and only time I met Ron Paul was in his office in DC in 2007. I had long admired him and I had come to pitch Dr. Paul on becoming a client of mine. I was a fledgling stock broker and I thought I might be able to interest him in some gold stocks.
What’s funny is that as soon as I walked through the door of his office and he and I sat down I forgot all about doing business and we just talked politics and strategy for about 20-25 minutes.
I left his office with a deepened respect for the man. Something which rarely happens (I now know) after meeting a politician in person.
“People aren’t spending money, because they don’t have any.”