“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
– John Maynard Keynes
From the article:
“If that’s “success“, we would hate to see what Keynesian failure looks like.”
– This Is What Keynesian “Success” Looks Like: Soaring Part-Time Jobs, Record Low Real Wages (ZeroHedge, May 17, 2015):
Though we noted the plight of the Japanese worker in a previous post, a plight which arrived in the US some five years ago yet which the mainstream still refuses to acknowledge, the punchline may have been somewhat diluted. So here it is again, without much additional commentary.
When it comes to the consequences of Japan’s QE, now in its third year, the head of the BOJ has been very clear:
- KURODA: BOJ’S EASING IS HAVING INTENDED EFFECTS: 5/14/2015
- KURODA: JAPAN IS APPROACHING FULL EMPLOYMENT: 5/13/2015
- RODA: JAPAN ECONOMY IMPROVED CONSIDERABLY AFTER QQE POLICY: 5/13/2015
In short: Keynesian policies (courtesy of the sage advice of none other than Paul Krugman), coupled with some $80 billion in monetarism monthly, have been a smashing success. At least that’s the propaganda. Now, here is Japan’s “full employment” truth.
Exhibit A: soaring part-time jobs:
Exhibit B: … consisting of “senior citizens and housewives“
And Exhibit C: working for record low real wages.
If that’s “success“, we would hate to see what Keynesian failure looks like. Perhaps we should just look to the US economy for the answer.