Most Keynesian economists do not want to admit that we are in another depression. They find the word painful.
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.
Here’s what a top Wall Street analyst says.
Indeed we don’t. But we are so conditioned to the idea that the cost of renting money fundamentally should be determined by a central bank that most don’t think anything of monetary policy. When the economy tanks, the Fed’s supposed to ease, when the economy gets too hot it’s supposed to raise rates. This is what we were all taught in our macroeconomics courses. Makes sense…I guess.
Actually not at all. These fluctuations, the business cycle, are created by the world’s central banks.
The bloom has come off Piketty’s socialist rose that’s for sure. Once the free marketeers peered into the French economist’s book, the arguments, particularly the central one, that capital snowballs forever with the rich forever getting richer, has fallen apart under scrutiny.
So are we. Just shocked.
Hey, at least she said it publicly. That’s more than Mr. Bernanke ever did.
I don’t think that Halliburton profits were THE chief driver of the war, and I don’t think Rand Paul does either. But Dick Cheney’s former company sure did make (and continues to make) a lot (billions) in Iraq.
11. The multifamily McMansion
Chapter 29 of Hunter Lewis’s new book.
The one city where Americans on average can? Washington DC!