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We Are All, Once Again, Keynesians Now
Dow Jones Newsplus ^ | Tuesday, July 15, 2008 3:45 p.m. EDT | NEAL LIPSCHUTZ

Posted on 07/15/2008 3:33:03 PM PDT by Ernest_at_the_Beach

NEW YORK -- "The era of big government is over."

So said President Bill Clinton more than 12 years ago in a statement that was never accurate. The government stayed big. And after the recent -- and justified -- interventions to prop up some big U.S. financial institutions, it's appropriate to say the era of government is now bigger than ever.

It's going to stay that way for a long while, regardless of who becomes the next president. Neither of the presumptive major candidates -- Barack Obama and John McCain -- is a traditional, hands-off economic conservative.

That's a good thing, because the option of letting the chips fall where they may won't be open to the next president. Oh sure, there will be good, long debates on taxes and the like, but the hand of government regulation will need to rest on markets and major financial institutions more heavily than it has in a while.

The next president could do a lot worse than having the current Federal Reserve chairman and Treasury secretary stay in place. They are broadly experienced professionals with cool heads.

Fed Chairman Ben Bernanke, of course, came into office talking about sticking to his knitting: monetary policy. No more Alan Greenspan-economic czar stuff. Nevertheless, he'll likely preside over a significant expansion of the Fed's regulatory responsibilities.

(Excerpt) Read more at djnewsplus.com ...


TOPICS: Business/Economy; Editorial; Government
KEYWORDS: bernanke; biggovernment; bush; economics; economy; fed; govwatch; keynes; keynesians; mccain; obama; term2

1 posted on 07/15/2008 3:33:03 PM PDT by Ernest_at_the_Beach
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To: Ernest_at_the_Beach

They are all Fabians through and through.


2 posted on 07/15/2008 3:35:48 PM PDT by BGHater (Heller v. DC= McCain-Feingold for Gun Control)
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To: BGHater

Stock Rollercoaster...
SEC emergency rule to curb short sales...
Fed chief details woes in markets, housing, jobs...
Bush, Bernanke try to calm economic storm...
'Global funding crisis'...


STRESSED OUT SUMMER

3 posted on 07/15/2008 3:39:22 PM PDT by Ernest_at_the_Beach (No Burkas for my Grandaughters!)
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Above is from the Drudge Report....


4 posted on 07/15/2008 3:40:36 PM PDT by Ernest_at_the_Beach (No Burkas for my Grandaughters!)
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To: Ernest_at_the_Beach

discount window = bank subsidies = inflation tax.


5 posted on 07/15/2008 3:45:55 PM PDT by 4Liberty (discount window = bank corporate welfare)
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To: Ernest_at_the_Beach

Yeah, Slick Willie said “middle class tax cut”; so did Barack.

Slick Barry.


6 posted on 07/15/2008 4:12:39 PM PDT by FlyVet
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To: BGHater; ex-Texan; TigerLikesRooster

When asked how long his economic pump priming could continue, the rich gay Keynes said, “In the long run, we’re all dead.”

IOW, screw future generations! Let our grandkids hold the empty bag!

Well, the future generation is here, and the bag is indeed empty.


7 posted on 07/15/2008 4:17:45 PM PDT by Travis McGee (--- www.EnemiesForeignAndDomestic.com ---)
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To: Ernest_at_the_Beach
So said President Bill Clinton more than 12 years ago in a statement that was never accurate.

I believe Nixon was the first to say it. And W is a hundred times the Keynesian that Clinton was. Except for Reagan, and a few others, Republicans suck at economics.

8 posted on 07/15/2008 4:42:25 PM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: Ernest_at_the_Beach

Keynes was an upper class twit that had no sense of reality about him. He is a commie through and through.


9 posted on 07/15/2008 10:39:16 PM PDT by Mobile Vulgus
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To: Moonman62

What Bernanke, Wolfowitz and the whole bunch are is neo keynesians - they will do nothing when the economy is building up a bubble (you know... chain mail economy like US housing market) and then flood the market with money once the bubble bursts.

So far the theory - only this time they couldn’t flood efficiently because when they openend the gates they realized that the money levels in the markets where to high to be flooded.

Over years they ran the economy with M3 extension to satisfy Chineese money demand - when the economy cooled and some wars had to be paid they increased printing speed a notch - then chineese demand was satisfied.

Now all that’s going to help seems to be to become a socialistic system where nearly all of the housing market in official hands.

Congratulations.


10 posted on 07/16/2008 1:40:00 AM PDT by Rummenigge (there are people willing to blow out the light because it casts a shadow)
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