his is a posting I put on another site, regarding one of the many statements that government intervention is alive and well, and so therefore is Keynes.
Keynes is dead. Socialism is not. Intervention is not. Keynes has become a code word for justifying intervention. it is a code word for a movement left by the body politic, as a reaction to geopolitical changes more than anything else.
The problem we are facing today is the RESULT of the kind of inflation and manipulation that Keynes recommended, and the reason that the inflation did no good, was for the reasons Hayek stated.
We have ruined our people. Money and prices are knowledge. And we used that lack of knowledge to make our people into the unwashed ignorant consumers.
And there is no technology that the west currently possesses that can increase production sufficiently to work off the debt as increases in production.
So, whereas Hayek thought Keynes was so obviously wrong that it wasn’t worth his time to refute him, we are all about to get a lesson, a tragic one, in how incompetent the controls that the government has are, in the face of a work force that is not a century ahead of it’s global competitors in technology and infrastructure.
The only profit we have been making for the past decade is in selling our opportunity costs to immigrants, and our citizen’s initiative to material consumption, our business leaders to the exploitation of fiat money, and our social order to debt inflation.
Anyone in government wants to support keynes. Because it justifies their jobs. Just like any other religion justifies the existence of it’s priests. But industry knows better. The entire infrastructure of the country, from it’s taxes, to laws, to roads, airports and air traffic control, to electrical grid, to factories, to it’s banking system, and especially it’s local banks that are deprived of knowledgeable lending management, is in decay. Now, is that because we ahve not taxed people enough? Or is it because, with cheap money, none of these investments is worth investment by the private sector?
It’s the latter.
Keynes will have a short rebirth. It will be his ghost. Because this is not going to be a two year recession. It’s going to be a five to eight year global depression. And on the other side. Keynes will be dead.