“The Coming War Will Solve Our Unemployment & Growth Problem”

“The Coming War Will Solve Our Unemployment & Growth Problem”:

Submitted by Carmen Elena Dorobat via The Mises Institute,

On the eve of World War II, Keynes delivered the following chilling address on the BBC, talking about the “grand experiment” of curing unemployment through war expenditure:

Two years later to the day, in a lecture delivered shortly after his arrival in the U.S., Mises described what the great experiment really looked like:

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Keynesian Skeptics Ask “Can Binge Drinking Really Cure Alcoholism?”

Paul-Krugman-Keynesians-Fail

Just like binge drinking destroys the human body, so does Keynesian binge drinking (deliberately) destroy the entire financial system.


 

Keynesian Skeptics Ask “Can Binge Drinking Really Cure Alcoholism?”:

 

Have you ever wondered who these people are? The people who decide how much capital should cost, how much credit and cash should be issued. You know, the twits who dream up QE, ZIRP and NIRP.

Where do they come from? Who pays their wages? Where do they get these hair-brained ideas? Are they on medication?

Sadly we probably know most of the answers…

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Keynesian Economics 101 (In 4 Simple Lessons)

Keynesian Economics 101:

Keynesian Economics 101 in 4 Simple Lessons

Since Keynesian economics has reined supreme among mainstream economists for decades, you might want to know some of the basics.   If this is confusing to you though, don’t worry about it! There are people in charge who have it all under control.

Keynesian-Economics-101

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This Is What Keynesian “Success” Looks Like: Soaring Part-Time Jobs, Record Low Real Wages

“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.”


japan part time workersJapan real wages

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:

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Get Ready For Negative Interest Rates In The U.S.

Get Ready For Negative Interest Rates In The US (ZeroHedge, Jan 24, 2015):

With Fed mouthpiece Jon Hilsenrath warning – in no lesser status-quo narrative-deliverer than The Wall Street Journal – that The ECB’s actions (and pre-emptive collapse in the EUR) means the U.S. economy must deal with a rapidly strengthening dollar that will make American goods more expensive abroad, potentially slowing both U.S. growth and inflation; and Treasury Secretary Lew coming out his crypt to mention “unfair FX moves,” it appears The Fed (and powers that be) are worrying about King Dollar. This suggests, as Mises Canada’s Patrick Barron predicts, the Fed will start charging negative interest rates on bank reserve accounts as the final tool in the war on savings and wealth in order to spur the Keynesian goal of increasing “aggregate demand”. If savers won’t spend their money, the government will take it from them.

As The Wall Street Journal explains,

The European Central Bank’s launch of an aggressive program this week to buy more than €1 trillion in bonds poses important tests for the U.S. economy and the Federal Reserve.

Europe’s new program of money printing—and the resulting fall in the euro—means the U.S. economy must deal with a rapidly strengthening dollar that will make American goods more expensive abroad.

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David Stockman: The Epochal Consequences Of Woodrow Wilson’s War – ‘The Entire 20th Century Was A Giant Mistake’

If you’ve read this book, then you know that nothing happens by ‘mistake’ ..

The Secrets of the Federal Reserve

@Amazon.com: The Secrets of the Federal Reserve Price: $14.13

@Amazon.co.uk: The Secrets of the Federal Reserve Price: £15.49

These elitists, who were behind the creation of the Fed, control the BoE and were behind the French revolution, the Russian revolution, WW1 and WW2 leave nothing to coincidence, …

… especially if they can manipulate and influence the outcome in their favor … by hook or by crook.


woodrow-wilson

The Epochal Consequences Of Woodrow Wilson’s War (David Stockman’s Contra Corner, Jan 21, 2015):

The Epochal Consequences Of Woodrow Wilson’s War

Remarks by David Stockman

Committee for the Republic

Washington DC January 20, 2015

My humble thesis tonight is that the entire 20th Century was a giant mistake.

And that you can put the blame for this monumental error squarely on Thomas Woodrow Wilson——-a megalomaniacal madman who was the very worst President in American history……..well, except for the last two.

His unforgiveable error was to put the United States into the Great War for utterly no good reason of national interest. The European war posed not an iota of threat to the safety and security of the citizens of Lincoln NE, or Worcester MA or Sacramento CA. In that respect, Wilson’s putative defense of “freedom of the seas” and the rights of neutrals was an empty shibboleth; his call to make the world safe for democracy, a preposterous pipe dream.

Read moreDavid Stockman: The Epochal Consequences Of Woodrow Wilson’s War – ‘The Entire 20th Century Was A Giant Mistake’

The Swiss National Bank’s Wake-Up Call: Keynesian Central Banking Is Destroying Money And Markets

The SNB’s Wake-Up Call: Keynesian Central Banking Is Destroying Money And Markets (David Stockman’s Contra Corner, Jan 17, 2015):

It seems everyone was short the franc (CHF) as a matter of taking monetarism at face value. In other words, it amounted to believing the central party line about the economy and normalcy despite the fact that markets have been increasingly pessimistic about it all and actively and aggressively betting against it. Goldman Sachs is just one of many:

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Game Over Japan: Real Wages Crash Most In 21st Century, Savings Rate Turns Negative

“After two years of economic torture and financial destruction, Abenomics has finally claimed the Keynesian prize: real wages crash 4.3%, the most in the 21st century, and Japan’s legendary savings rate, which peaked at 23% in 1975, just turned negative for the first time ever. Game over Japan.”

Seppuku Japan

–  Game Over Japan: Real Wages Crash Most In 21st Century, Savings Rate Turns Negative (Zerohedge, Dec 26, 2014):

When about a month ago it was revealed that Japan’s shadow economic advisor is none other than Paul Krugman, we said it was only a matter of time before the Japanese economy implodes. Terminally. We didn’t have long to wait and last night the barrage of Japanese economic data pretty much assured Japan’s transition into failed Keynesian state status.

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The IMF And Austrian Theory

Christine-Lagarde-IMF

The IMF And Austrian Theory ( Mises Canada,Oct 17, 2014):

Back in the early 1960s, financial journalist Henry Hazlitt warned against efforts to create an international system to help facilitate the smooth transfer of currencies. Representatives from the world’s leading governments were attempting to increase liquidity in global markets. They wanted to make sure the banking system and sovereign governments would never had a lack of funds. Hazlitt was not fooled. “In plain English” he wrote, “they are pushing for more world inflation.” His words, though accurate, went unheeded. The International Monetary Fund, which was established decades earlier, was to play a role in facilitating endless inflation.

Half a century later, the IMF has overseen a tumultuous business cycle that came to a screeching halt in 2008. Big, overleveraged banks were on the verge of collapsing; millions of people lost their jobs and their homes; governments spent billions of dollars to maintain their welfare safety nets. The end result, which is still ongoing, is stagnant economic growth with dim prospects for recovery.

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