Keynesian theory. Delusions, and reality....

Rather than jumping into the fundamental economic flaws of steem/hive, I'll start here...(They're next)..

The economic theories purporting to be a product of intelligent minds.
(Yeah, seriously...)

KEYNES....

Time magazine (rothchilds), included Keynes in its 'Most Important People of the Century' in 1999.
Stating that "his radical idea that governments should spend money they don't have may have saved capitalism."

Yes, seriously...

In addition to being an economist, Keynes was also a civil servant, a director of the Bank of England, and a part of the **Bloomsbury Group of intellectuals.
Their works and outlook deeply influenced literature, aesthetics, criticism, and economics as well as modern attitudes towards feminism, pacifism, and sexuality.

Any pennies dropping yet, as you try and smell that coffee?

Ok, moving on......

What we call “Keynesian” economics is actually macroeconomics.

It's a theory based on managed economies by people who either don't have clue about practical applications, or criminals who wish to steal your money in the seemingly politest way, possible.
And they are called governments and banks.

Keynes had one central idea when he wrote his General Theory, and that was to demonstrate that demand deficiency could cause recession and that therefore some kind of demand-side stimulus could and should be used to cure the problem of unemployment.

It all sounded very sexy and the governments (and banks) were wildly enthusiastic supporters of his theories. (funnily enough).
It was the socialist's gift that just kept on giving....

There was only one teensy weensy problem with the theories...

AND THAT WAS - IT'S TOTAL AND UTTER BOLLOCKS.

90 percent of 'economists' today, who've been steeped in marxist perspectives, ('education' gleaned from the so called 'higher education' institutions) see things only one way - as far macroeconomic issues are concerned – and that's all they know from the said indoctrination camps.

They do not think in any other way, and if asked to do so, would not know how.
'Higher education' establishments and critical thinking skills, parted ways some years ago.

'Economists' have not been taught to think critically, but to just regurgitate dogma and call it 'intelligent thinking'.
They automatically prescribe increased public spending as a 'cure' during recessions , simply because that 's what they have been taught for four generations or more.

A very large part of the reason for the economic mess that we're in today , is down to the failings of economic theory itself.

As I said, Keynesian economic theory is total bollocks.

If you need any more proof of it – just look around you today – and at the economics at play in world .

All of it stems from the attempted application of Keynesian economics.

Hows that working out?

Keynesian economics relies on debt to function.

Central Banking, governments, and Keynes are the perfect bedfellows for an economic con job on the grandest of scales.

Hopefully the looming economic failures of the current series of stimulus packages (being applied across the world) will help to lift the fog of unthinking 'experts', and the dangers that this Keynesian legacy has left behind.

The fog will be lifted one way or another – most probably seen as currency collapses and hyperinflation, worldwide.
You cannot inflate your way out of debt,( government borrowing) and sustain value in your currency.

It's mathematically impossible.

Until Keynes came along with his daydreams theories, economics was supply side orientated.
Creating value was the aim of economic activity.
And this was left to the business community.

i.e left to real people who worked in the real world, and not some theoretical 'fix all problems' hypothesis.

With a supply side perspective, market forces were recognized as a 'trial and error' system.
Those who could create more value (than was used in production) were profitable, and they'd to continue to do business.
Those who could not, had to find some other way to carve out a living.

Free markets and competition (a natural dynamic),were designed to reward success while removing poorly allocated capital away from those who could not use resources in a productive way.

This understanding has been replaced over the last few decades, by a theory which places demand at the center of macroeconomic activity.

This change of perspective, then goes on to create the consumerist mindset, and the debt laden economic system that we see at work today. (how that working out?)

In the 'arse about tit', Keynesian model – it's buying that supposedly drives an economy forward, not producing.

This perspective is an inversion of how market economies have grown previously.

An inversion of reality.

Stimulating demand (consumerism) is expected to find the way to recovery, not from encouraging value adding production - but from credit and money supply.

Instead of recognizing the necessity and efforts required to craft a business enterprise, (the value of output is greater than the value of the resources used), we now pretend that we can get the same result by governments spending money on whatever seems to be most politically convenient to maintain their power.
The banks do not care about the politics, only the continual increasing debt spiral, and creating a wealth transfer to themselves, via debt and interest on a money supply they control.
(insanity, anyone?)

Not many people can can run a successful business.

Many think they can run one. And fail.

But anyone can spend from now until the end of time, if given the licence to tax or print money.

We were programmed to think that the governments spending money, will stimulate growth.
In times gone by it was understood that it was almost entirely the management of successful business enterprises that pulled an economy forwards.

This is the fundamental error of Keynesian economics.

So fundamentally flawed in fact , that the only reason for it to have ever being taken seriously, is down to other things that purely critical thought would not allow for.

Politics. Lies. Manipulation.Corruption.

The 'oh see easy' gravy train of spending other peoples money without any accountability, (government), and bank created money (debt), is a recipe for disaster to the ordinary man in the street who lives in the real world.
It is not a world of theory.

Some theoretical shit....

In a domestic economy, there are three elements of demand identified by macroeconomic theory:
Consumption (represented by the letter “C”),
Private investment (I) and
Government spending (G).
The equation found in economic texts is that output equals the total of C + I + G.

It's a logical fallacy, and one that six decades of marxist universities, (and their economists) have failed to point out.

Here's the thing...
From the theoretical point of view, it makes no difference whether money is spent by consumers on final goods and services, by governments on politically driven wasteful expenditures, or by businesses on value adding forms of investment.

In THEORY, all provide demand and therefore all are equivalent.

Hence the teensy weensy problem in this theory, and it's well deserved title of being 'total bollocks'.....

... government money is 'not real'.

It is not a surplus of wealth created from efficient production by the government...It is taxation taken from other people's productive activities, plus borrowed money (central banking ).

Thus a forever inflationary spiral, as more money debt is created.
(and the ensuing wealth transfer to the banking institutions).

Until that Keynesian delusion is expelled from peoples minds of being a reality, macroeconomic theory will remain incapable of reliably providing any answers.

.... 'the trouble with Keynesian economics is that eventually you run out of other people’s money' (taxation and/or debt).

A large proportion of the economics community idiots, will continue to recommend expenditure on one dubious project after another until such spending finally forces governments into doing what they ought to have been doing from the start.

Leaving the fuck alone. Or collapse economies. It's an 'either', 'or' situation.

We can only postpone the inevitable for so long. Can you hear the sound of the oncoming sound of the economic locomotive? It's called the 'Keynesian express'... It's getting very close now.
As the meaning of the word 'inevitable' implies -- the inevitable, inevitably, arrives.

You can ignore reality, but you can't ignore the consequences of ignoring reality.

Free markets and price discovery mechanisms without top down interventions are the real economy.

This is the reality.

We now have a crisis in our economies from blindly following Keynesian 'logic', and unless we fix the problems embedded within Keynesian economics, (and change fundamental perspectives and mindsets ), then fixing the problems of economies will be far more difficult process than it ever needs to be.

As long as we continue to rely on 'Keynesian prescriptions', the remedies chosen will themselves cause an extraordinary amount of damage.
It's a mathematical certainty.

We are now seeing the results of this Keynesian economic theory insanity right now in the real world - before our very eyes.