Posted on 06/28/2010 9:53:45 AM PDT by TigerLikesRooster
More Keynesian Clowns Come Out Of The Woodwork
Mike "Mish" Shedlock | Jun. 28, 2010, 12:20 PM | 401 | comment 5
Nearly every day, more Keynesian and Monetarist clowns show up trumpeting the benefits of more government spending and more financial debt.
For example, please consider the Telegraph article Ben Bernanke needs fresh monetary blitz as US recovery falters by Ambrose Evans-Pritchard.
Fed watchers say Mr Bernanke and his close allies at the Board in Washington are worried by signs that the US recovery is running out of steam. The ECRI leading indicator published by the Economic Cycle Research Institute has collapsed to a 45-week low of -5.7 in the most precipitous slide for half a century. Such a reading typically portends contraction within three months or so.
Key members of the five-man Board are quietly mulling a fresh burst of asset purchases, if necessary by pushing the Fed's balance sheet from $2.4 trillion (£1.6 trillion) to uncharted levels of $5 trillion. But they are certain to face intense scepticism from regional hardliners. The dispute has echoes of the early 1930s when the Chicago Fed stymied rescue efforts.
(Excerpt) Read more at businessinsider.com ...
P!
The moral hazard of Keynes.
In the name of stimulus, we squander money on the corrupt friends of the government. Few jobs result, ACORN and unions get rich, etc.
Stimulus = corruption and waste.
Spending money you don't have DOES NOT WORK for the most simple of households.
That simple fact does not change in any way for the infinitely more complex considerations inherent in the macroeconomics of a national economy.
No matter how “smart” the socialists at the controls are.
Golly even if they went to “prestigious” Ivy League schools.
And in this corner was have Barack Hussein Obama, the Keynesian Kenyan...Obama...
And in this corner we have Sarah Palin, the Woman from Wassila...Palin...
To whom would you trust your money?
The Keyens theory was never intended for long term purposes. Politicians use the Keyens theory as an excuse for thier out of control behaviour.
The Obammunist administration claims it has created hundreds of thousands of jobs.
"It's just that more were lost than created. Do the math, create 100K, lose 150K. Anyone can see that 100 thousand were created. If we hadn't created so many jobs, we would be worse off."
yitbos
A word about Keynes. His theories (at least as have been maintained in economics classes that I’ve taken) basically argue that you can’t do this hyperspending too long. That is, eventually the bill comes due and you have to run surpluses to pay it back.
Nobody ever mentions the surpluses.
I don’t know if Keynes would have rejected the Obama approach in the face of complete failure, but I tend to think he would be much more reluctant to do more of it than, say, Tom Friedman is.
This is the part of the article that gets it done!
......Stimulus = corruption and waste......
You must understand that the Messiah et al believe in trickle down stimulus.
The stimulus must first be received by Acorn, SEIU or ‘RAT apparatchiks that must spend the money for goods.
All animals are equal except ‘Rats and they are more equal.(especially black rats)
So Obama *is* a Kenyan, oops I mean Keynesian — LOL !
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