Keynesian economics has failed.

Keynesian economics, full speed ahead since the 1930s, has failed.

Almost as soon as they set up the Fed in 1913, the Austrian economists predicted the Great Depression and the fall of the public gold standard. Roosevelt fulfilled the prediction by illegally and unconstitutionally confiscating all the personally held gold across the country. Then they predicted that the money devaluation would force an agreement. Bretton Woods came around in 1944, agreeing to pay foreign central banks gold for dollars. With Roosevelt the dollar went from $20 an ounce to $35.

The Ausrtiran economists (van Mises et. al. ) predicted the fall of Bretton Woods. Nixon threw out Bretton Woods in 1971, and said we weren’t going to give gold for dollars any more to anybody, and the dollar began its decline in value that continues today.

Germany printed so many marks in the Weimar Republic they used to throw them into the street to steal the carts that carried them. How many dollars in circulation will it take for people to realize that when prices go up it’s because the dollar doesn’t mean as much anymore?

What speculators do is bet on what’s going to happen with the price of a commodity. They cannot drive prices up or down, they just bet on it. If they bet it’s going to go up, they grab the futures on the commodity, so if the real market price goes down then they lose their shirts and nobody notices.

That’s why Obama released 30 million tons of oil reserve. Prices were already going down, but he released the oil because he understands that more supply means lower prices.

It works that way for the dollar too. More supply of dollars means lower “prices” for the dollar, but for the currency that means you get less for your dollar, which means prices go up.

This is not a Democratic Party thing nor is it a Republican Party thing, it’s a printing money scheme. We are the marks. The politicians that play along with the Fed and debt game and free money illusion are the cons (the party bosses in both parties and many of their underlings), those political operatives are the “straight” half of the tag team, and the Fed is the hustler.

2 Responses to “Keynesian economics has failed.”

  1. hemp Says:

    And they begin to develop ideas theories and illusions that support their perpetual boom longings..Here a commentator explains why although things may look bad for the dollar now they wont get worse .There is still enormous demand for dollars for purposes of financial speculation writes our old friend Rick Ackerman..This fact is indisputable when you consider that there are 370 trillion of derivatives in play in a world that produces only about 55 trillion in real goods and services and we can discount fears that China and Japan the dollars main supporters are about to diversify out of dollars in any meaningful way as theyve long threatened to do. The simple fact is that to keep their export-based economies running smoothly they will do whatever it takes to keep their respective currencies from appreciating.

  2. trutherator Says:

    Mr. “hemp” contradicts himself in his own words, talking about “370 trillion of derivatives”. The dollar is on an accelerating slide to worthlessness, and how long do you think the Chinese are going to keep their “investment” in dollars if the US Congress and the Fed keep on shrinking its value?

    The dollar is a green paper pig, and they keep pumping hot air like that comment into it to make it look bigger than it is, and they keep throwing more bad dollars after bad. But soon the air-inflated green paper pig is going to go bam! and bust!

    Of course the Chinese (and the bankers that own the Fed) are going to demand some real value for their dollars before they let it do that.

    The US has already defaulted on its debt, EVERY RAISE IN THE DEBT CEILING IS A DEFAULT. Every time they raise their credit card limit they are admitting they don’t want to or cannot pay their debts.

    Foreign governments have absorbed it, but eventually it’s going to be a Zimbabwe situation, Weimar Republic.

    Proverbs 11:1  ¶A false balance is abomination to the LORD: but a just weight is his delight.
    Proverbs 20:23  ¶Divers weights are an abomination unto the LORD; and a false balance is not good.

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