Oisín
01-09-2009, 11:57 PM
Beyond The Age Of Usury
From the desk of Sharon Kayser (http://www.brusselsjournal.com/sharonkayser)
"It is generally agreed that casinos should, in the public interest, be inaccessible and expensive. And perhaps the same is true of Stock Exchanges." — John Maynard Keynes
What is particularly fascinating with John Maynard Keynes is that he wrote a theory that only works on paper since it assumes that monetary, political and financial managers will never abuse the power of indebtedness. So, what to think of this worldwide credit squeeze and its implemented cure that is no more less the cause of the disease and could spiral at any moment into a 'Greater Depression'. This week Gregory Mankiw, a professor of economics at Harvard, wrote a piece in the NYTimes (http://www.nytimes.com/2008/11/30/business/economy/30view.html?pagewanted=print) asking openly what Keynes would have done to deal with the crisis. Just another nice but failed attempt to praise the Keynesian fairy tales. Mankiw cites the observation which links the root cause of economic downturns to insufficient aggregate demand. What demand when the consumers (http://www.libertypost.org/cgi-bin/readart.cgi?ArtNum=247837) are completely tapped out in the first place? How can world governments create demand when they are literally bankrupt?
[Continue reading] (http://www.brusselsjournal.com/node/3724)
From the desk of Sharon Kayser (http://www.brusselsjournal.com/sharonkayser)
"It is generally agreed that casinos should, in the public interest, be inaccessible and expensive. And perhaps the same is true of Stock Exchanges." — John Maynard Keynes
What is particularly fascinating with John Maynard Keynes is that he wrote a theory that only works on paper since it assumes that monetary, political and financial managers will never abuse the power of indebtedness. So, what to think of this worldwide credit squeeze and its implemented cure that is no more less the cause of the disease and could spiral at any moment into a 'Greater Depression'. This week Gregory Mankiw, a professor of economics at Harvard, wrote a piece in the NYTimes (http://www.nytimes.com/2008/11/30/business/economy/30view.html?pagewanted=print) asking openly what Keynes would have done to deal with the crisis. Just another nice but failed attempt to praise the Keynesian fairy tales. Mankiw cites the observation which links the root cause of economic downturns to insufficient aggregate demand. What demand when the consumers (http://www.libertypost.org/cgi-bin/readart.cgi?ArtNum=247837) are completely tapped out in the first place? How can world governments create demand when they are literally bankrupt?
[Continue reading] (http://www.brusselsjournal.com/node/3724)