I've Come To Bury Keynes

196
Mon, Oct 17, 2011 - 4:25pm

Is Keynesianism dying? Is it already dead? Conversely, maybe it's not even sick? Maybe it's actually the cure?

Look, I think you already know how I feel. The theories of Keynes have been utilized as a cover story for quasi-socialists and progressives for nearly 80 years. Do you want social welfare (Johnson, Obama)? More government spending! Do you want an expanding military/empire (both Roosevelts, Eisenhower, Reagan)? More government spending! Do you want corporatism and crony capitalism (Nixon, Clinton, Bushes)? More government spending! Do you want more power in the hands of the elites and less in the hands of the individual (the Fed)? More government spending! All in the name of the great John Maynard Keynes.

That this failed experiment is rapidly crashing should come as a surprise to no one. All we can do here is plan accordingly. For fun, however, here is a thought experiment. First, watch this brief video. It's about 10 minutes and the best parts are in the middle. Pay particular attention to the scrolling commodity prices at the bottom of the screen around the 4:30 mark and be sure to watch the FBN segment at around the 5:30 mark.

Keynesian Economics vs. Austrian Economics

https://spectator.org/archives/2011/10/06/is-keynes-finally-dead

Having read that, you're ready for this final part of the experiment. Below is a video from last week of Stephen Moore "debating" some dude named Thom (clearly he's too smart to simply go by "Tom" like everyone else named "Thomas") Hartmann.

Is Keynes Finally Dead?

Again, please spend some time considering both sides of the Keynesian "argument". Just because I say that "the end is upon us" doesn't make it so. I could (gasp!) be wrong. You must research and consider the facts yourself. Come to your own conclusions. Act and prepare accordingly. TF

p.s. If there really is going to be a CFTC meeting tomorrow to discuss position limits, do not be surprised to see some EE shenanigans overnight. The Forces of Darkness may want to "remind" the commission just who really is in charge...

About the Author

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turd [at] tfmetalsreport [dot] com ()

  196 Comments

FriedEggs
Oct 17, 2011 - 4:27pm

baked?

baked?

.

Fried(e)

tmosley
Oct 17, 2011 - 4:31pm

Before you bury him, I'm

Before you bury him, I'm going to desecrate the corpse.

exiledbear
Oct 17, 2011 - 4:37pm

I'm a Cynican

That's neither Keynesian nor Austrian. Actually, I think all economic thought at the bottom of all of this, you know post-collapse and all - will be equated to things like drug dealing and prostitution. To discuss economics, will be tantamount to discussing whether bordellos or streetwalkers are better. Or the merits of crystal vs. powdered coke.

I think the politicians have taken what they wanted to hear from Keynes and left the rest with the academic institutions.

I think those same politicians (and their corporate buddies) take what they want to hear from the austrians and libertarians and leave the rest with the policy wonks and the think tanks.

Here's my opinion. I think for some things (a narrow and well defined class of activities) removing the profit motive actually makes them run BETTER. Get the ideology and religion out of your skull and just look at the world around you.

For other things a profit motive seems to work out pretty well. And you always have to ask better for who? Better for you? Better for everyone? Better for the needy? Behind each answer lies an open can of worms, worms that need to be gently sauteed over low heat with a touch of garlic and butter.

And then there seems to be where we are today - where BOTH private industry and the government spectacularly FAIL, and the stupidity and incompetence just boggles the mind.

All I know is, at some point the public (at least the public with wealth to protect) will figure out that it's all coming apart and since the Swiss decided to join the debasement game, there's nowhere else to go except the PMs.

Stoxxman
Oct 17, 2011 - 4:39pm

Economists have at very least 3 hands ...

My background is Economics and the most heavily used saying is "on the other hand" ...

Everybody should remember to click the "adsense" ads to support this space ... every visit.

Shill
Oct 17, 2011 - 4:41pm

Citigroup 3rd Quarter Results

Citigroup 3rd Quarter Results Do Not Disappoint

Or do they? More obvious fraud with the Banking community. Again Dave hit a homerun.

Be Prepared
Oct 17, 2011 - 4:43pm

Keynes - A Liar's Path

A good potential for a refresher of the discussion we've had a few times on this board. For me, its simple.....Keynes path is a fool's errand that all the nations of the world have willing followed and, with the printing of gobs of fiat, will follow to its dying gasps. Each day, I try to find a way to look for the positives, but it's a struggle I don't often win.

FriedEggs
Oct 17, 2011 - 4:44pm

I bet only 1% of the 99%

even knows what Keynesian means.

.

Fried(e)

Alex Costa
Oct 17, 2011 - 4:53pm

Austrian Just Makes Sense

If anyone who studies economics could get the slates wiped clean, and then study Austrian economics before Keynes it would make perfect sense.

Then JMKeynes comes in and messes everything up. What a waste.

Shill
Oct 17, 2011 - 4:54pm

Update: Lowes Home

Update: Lowes Home Improvement Store Closing List / Location

The stores affected by today’s announcement are located in:

Los Banos, CA Biddeford, ME Old Bridge, NJ
Westminster, CA Ellsworth, ME Batavia, NY
Denver, CO Ionia, MI N. Kingstown, RI
Aurora, IL Rogers, MN Emporia, VA
Oswego, IL Claremont, NH S. Tacoma, WA
Chalmette, LA Hooksett, NH Brown Deer, WI
Haverhill, MA Manchester, NH

https://www.dailyjobcuts.com/

Tesla
Oct 17, 2011 - 4:57pm

Thanks Turd - Was Hoping You Would Comment

On...

Chinese gram denominated gold contracts traded in Remimbi that started on Friday... Could this have anything to do with a beat down prior to a surge in physical demand??

Key Economic Events Week of 1/27

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1/29 10:00 ET Pending Home Sales
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1/30 8:30 ET Q4 GDP first guess
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Key Economic Events Week of 1/27

1/28 8:30 ET Durable Goods
1/28 10:00 ET Consumer Confidence
1/29 10:00 ET Pending Home Sales
1/29 2:00 pm ET FOMC Fedlines
1/29 2:30 pm ET Powell presser
1/30 8:30 ET Q4 GDP first guess
1/31 8:30 ET Pers Inc and Spending
1/31 9:45 ET Chicago PMI
2/2 10:00 pm ET Chiefs win SB LIV

Key Economic Events Week of 1/13

1/14 8:30 ET CPI
1/14 9:00 ET Goon Williams
1/15 8:30 ET PPI and Empire Fed
1/16 8:30 ET Retail Sales and Philly Fed
1/17 8:30 ET Housing Starts
1/17 9:15 Et Cap Ute and Ind Prod

Key Economic Events Week of 1/6

1/7 8:30 ET US trade deficit
1/7 10:00 ET ISM Services PMI
1/7 10:00 ET Factory Orders
1/8 8:15 ET ADP employment
1/9 8:00 ET Goon Chlamydia speech
1/9 1:20 ET Goon Evans 2:00 ET Goon Bullard
1/10 8:30 ET BLSBS
1/10 10:00 ET Wholesale Inventories

Key Economic Events Week of 12/16

12/16 8:30 ET Empire State Manu Idx
12/16 9:45 ET Markit flash PMIs Dec
12/17 8:30 ET Housing Starts and Bldg Perms
12/17 9:15 ET Cap Ute and Ind Prod
12/19 8:30 ET Philly Fed
12/20 8:30 ET Final guess Q3 GDP
12/20 10:00 ET Pers Inc and Spending
12/20 10:00 ET Core Inflation

Key Economic Events Week of 12/9

12/10 8:30 ET Productivity and Unit Labor Costs
12/11 8:30 ET CPI
12/11 2:00 pm ET FOMC fedlines
12/11 2:30 pm ET CGP presser
12/12 8:30 ET PPI
12/13 8:30 ET Retail Sales
12/13 10:00 ET Business Inventories
12/13 11:00 ET Goon Williams speech

Key Economic Events Week of 12/2

12/2 9:45 ET Markit Manu PMI
12/2 10:00 ET ISM Manu PMI
12/2 10:00 ET Construction Spending
12/4 9:45 ET Markit Services PMI
12/4 10:00 ET ISM Services PMI
12/5 8:30 ET Trade Deficit
12/5 10:00 ET Factory Orders
12/6 8:30 ET BLSBS
12/6 10:00 ET Wholesale Inventories

Key Economic Events Week of 11/25

11/25 8:30 ET Chicago Fed Nat'l Idx
11/25 7:00 pm ET CGP speech
11/26 8:30 ET Advance Trade
11/26 9:00 ET Case-Shiller home prices
11/26 10:00 ET New home sales
11/26 10:00 ET Consumer Confidence
11/27 8:30 ET Q3 GDP 2nd guess
11/27 8:30 ET Durable Goods
11/27 9:45 ET Chicago PMI
11/27 10:00 ET Pers Inc & Cons Spndg
11/27 10:00 ET Core inflation
11/27 2:00 pm ET Beige Book

Key Economic Events Week of 11/18

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11/20 2:00 ET October FOMC minutes
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11/22 9:45 ET Markit November Flash PMIs

Key Economic Events Week of 11/11

11/12 Three Fed Goon speeches
11/13 8:30 ET CPI
11/13 11:00 ET CGP on Capitol Hill
11/14 8:30 ET PPI
11/14 Four Fed Goon speeches
11/14 10:00 ET CGP on Capitol Hill
11/15 8:30 ET Retail Sales
11/15 8:30 ET Empire State Manu Index
11/15 9:15 ET Cap Ute and Ind Prod
11/15 10:00 ET Business Inventories

Key Economic Events Week of 11/4

11/4 10:00 ET Factory Orders
11/5 9:45 ET Markit Services PMI
11/5 10:00 ET ISM Services PMI
11/6 8:30 ET Productivity & Labor Costs
11/6 Speeches by Goons Williams, Harker and Evans
11/8 10:00 ET Consumer Sentiment
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