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To: Sam Gamgee

“OK it was a monstrosity thought my socialist Keynes?”

Well Keynes wasn’t a socialist, so there’s that. He once quipped that he attended a meeting of ‘Keynesians’ and he was the only non-Keynesian there. What he is is the father of macroeconomics, a tool which supply-side economists use just like everybody else.

Keynes recommended that in a deflationary credit collapse aka Depression a government should stimulate the economy to break the self-reinforcing cycle. That stimulus could be spending or tax cuts or both. Reagan’s economists used it, along with deregulation that shifted the production possibility curve to the right.

But back to SDRs. Had they been used as the reserve currency at Bretton Woods instead of the dollar there would have been no Triffin Dilemma, the link of the dollar to gold would not have been broken, and we would not have had the inflation of the ‘70s. Doesn’t sound like a monstrosity to me.


124 posted on 08/22/2019 3:44:34 PM PDT by Pelham (Secure Voter ID. Mexico has it, because unlike us they take voting seriously)
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To: Pelham

Manipulating the money supply and Central Banking, is that not the essence of socialism? The idea you can invest $1 in public programs, and voila, $1.40 of wealth is created, Keynsian socialist magic.


127 posted on 08/23/2019 1:35:09 PM PDT by Sam Gamgee
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