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It's official, Keynes was Right
Yahoo Finance: The Daily Ticker ^ | 04/24 | Henry Blodgett

Posted on 04/24/2012 8:02:08 AM PDT by MichaelP

This morning brings news that Europe may finally be beginning to soften on the "austerity" philosophy that has brought it nothing but misery over the past several years.

The "austerity" idea, you'll remember, was that the continent's huge debt and deficit problem had ushered in a "crisis of confidence" and that, once business-people saw that governments were serious about debt reduction, they'd get confident and start spending again.

That hasn't worked.

Story at link

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Extended News
KEYWORDS: keynes
They can't mine the gold fast enough....

Mike

1 posted on 04/24/2012 8:02:10 AM PDT by MichaelP
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To: MichaelP

Funny...they say “stimulus now and cuts later” is the best solution. Yeah, until you actually have to make those cuts...which would mean austerity. If you don’t cut now you are just making the problem harder to solve down the road.


2 posted on 04/24/2012 8:05:49 AM PDT by for-q-clinton (If at first you don't succeed keep on sucking until you do succeed)
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To: MichaelP

keynes... lying communist MF’er... just like anyone that believes in it.

LLS


3 posted on 04/24/2012 8:08:22 AM PDT by LibLieSlayer (Pray hard and often!)
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To: MichaelP

Yeah, he was right:

“By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. “
“the way to implement socialism is to grow debt, print money and inflate the currency in order create inflation in order to steal from the citizens without them knowing their property was being stolen.”


4 posted on 04/24/2012 8:10:44 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: MichaelP
Anyone ever heard of Bitcoin?

A fool and his imaginary money are soon parted.

5 posted on 04/24/2012 8:13:48 AM PDT by martin_fierro (< |:)~)
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To: MichaelP

This doesn’t vindicate Keynes. The reason the austerity plan was implenmented in the first place was the complete failure of Keynesian economics and impending bankruptcy. If you cant stop spending even though you have no money then the problems ahead make the issues with austerity look like a walk in the park.


6 posted on 04/24/2012 8:13:48 AM PDT by circlecity
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To: MichaelP

The author claims a “surplus” that was “squandered” which is factually untrue - the US has not run a real surplus for almost 50 years!

Keynes may have been right - but most countries have past a point of no return regarding debt - adding more will not solve the problem as it will be impossible to pay it back / make significant cuts later which do NOT crash the economy.


7 posted on 04/24/2012 8:16:44 AM PDT by An.American.Expatriate (Here's my strategy on the War against Terrorism: We win, they lose. - with apologies to R.R.)
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To: MichaelP
...once business-people saw that governments were serious about debt reduction, they'd get confident and start spending again.

That's the problem. The business people saw that the governments were NOT serious about debt reduction. Not at all.
Could that be the fault of said governments or the evil business people who must have the wrong attitude.

Why can't they see that raising taxes and spending more does absolutely nothing good for the confidence of the people who are paying for it.

8 posted on 04/24/2012 8:17:29 AM PDT by BitWielder1 (Corporate Profits are better than Government Waste)
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To: MichaelP

Liberal logic:

Your house is on fire. You throw some water on the fire. Your house is still on fire. Therefore, water doesn’t put out fires. (Ultralib conclusion: Water causes fires.)


9 posted on 04/24/2012 8:19:44 AM PDT by TruthShallSetYouFree (No, Mr. Obama--Marbury vs. Madison was not an NCAA first round matchup.)
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To: for-q-clinton

Show me the country that has actually cut spending. Not reduced the rate of increase, but actually cut spending and eliminated deficits y-o-y, and reduced its debt load.

They’re declaring a failure that which they dare not try, a government that ‘lives within its means’ and only spends what is taxes in open taxation.

After WWI the U.S. suffered a severe market crash and unemployment over 12% in the 1920-1 Depression subsequent to the ballooning of credit during the war. But the federal government cut spending, actually reduced the debt load on the citizens, and Harding ignored Hoover’s (then commerce secretary) interventionist pleas, and the Federal Reserve RAISED interest rates, and the economy rebounded in less than a year, with unemployment falling under 4%.

We’ve taken the Hoover-FDR approach this time around, and we’re slow walking into another decade long Depression because the government won’t quit squandering resources and starving the productive side of society of capital.


10 posted on 04/24/2012 8:20:59 AM PDT by Gunslingr3
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To: MichaelP
If Keynes was right then Greece and Spain would be bailing out the overly austere Germans.
11 posted on 04/24/2012 8:27:01 AM PDT by KarlInOhio (You only have three billion heartbeats in a lifetime.How many does the government claim as its own?)
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To: MichaelP

-—That hasn’t worked.——

This is an example of wishful thinking overwhelming common sense.

Even liberals aren’t this jaw-droppingly stupid... Are they?


12 posted on 04/24/2012 8:35:42 AM PDT by St_Thomas_Aquinas (Viva Christo Rey!)
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To: TruthShallSetYouFree
"water causes fires"

addendum to lib logic: not only does water cause fires, pouring gasoline on the fire is an even better way of putting it out.

13 posted on 04/24/2012 8:37:01 AM PDT by driftless2
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To: MichaelP

the only thing which has softened are the brains of their voters


14 posted on 04/24/2012 8:38:59 AM PDT by Buckeye McFrog
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To: All


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15 posted on 04/24/2012 8:40:48 AM PDT by onyx (SUPPORT FREE REPUBLIC, DONATE MONTHLY. If you want on Sarah Palin's Ping List, let me know.)
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To: LibLieSlayer

I personally believe that Keynes has brought more harm to the world than Hitler. I’m sure others would disagree, but.....


16 posted on 04/24/2012 8:47:32 AM PDT by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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To: MichaelP

As he said, he’s certainly not an economist, of any kind. Well, maybe the imaginary kind.


17 posted on 04/24/2012 8:50:23 AM PDT by gunsmithkat (There is no such thing as Too Many Guns)
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To: TruthShallSetYouFree
Liberal logic:

Your house is on fire. You throw some water on the fire. Your house is still on fire. Therefore, water doesn’t put out fires. (Ultralib conclusion: Water causes fires.)

I am so stealing that!

...and, to stay on-topic...Keynes is still wrong...!

18 posted on 04/24/2012 8:54:43 AM PDT by Prov1322 (Enjoy my wife's incredible artwork at www.watercolorARTwork.com! (This space no longer for rent))
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To: MichaelP
the best way to help the economy work its way out of its hole is for the government to spend like crazy.

Yeah, give an alcoholic more booze to treat his DTs.That's a great plan, not.

19 posted on 04/24/2012 8:57:51 AM PDT by mjp ((pro-{God, reality, reason, egoism, individualism, natural rights, limited government, capitalism}))
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To: MichaelP

I didn’t realize Henry Blodgett was this stupid. Wait, wasn’t he the guy who touted all the dotcoms, and claimed that they should be valued by their “eyeballs” not their earnings? And then fired when the dotcom bubble burst? And then investigated? Well, now I understand.


20 posted on 04/24/2012 9:10:11 AM PDT by Defiant (If there are infinite parallel universes, why Lord, am I living in the one with Obama as President?)
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To: for-q-clinton

HA ha ha, since when WelfarEUrabia had austerity rules?


21 posted on 04/24/2012 9:10:31 AM PDT by JudgemAll (Democrats Fed. job-security Whorocracy & hate:hypocrites must be gay like us or be tested/crucified)
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To: for-q-clinton

HA ha ha, since when WelfarEUrabia had austerity rules?

I think this is more akin to resignation. Europe was doing narcotics, now they are picking up the gun to blow their brains out.


22 posted on 04/24/2012 9:11:11 AM PDT by JudgemAll (Democrats Fed. job-security Whorocracy & hate:hypocrites must be gay like us or be tested/crucified)
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To: CSM

Our thinking is close on this one.

LLS


23 posted on 04/24/2012 12:24:54 PM PDT by LibLieSlayer (Pray hard and often!)
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To: TruthShallSetYouFree

To deflect the obvious, they start ranting about all the water damage being done (”may as well let it burn because what’s left will just be a soggy mass nobody wants anyway!”).


24 posted on 04/24/2012 12:28:20 PM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: An.American.Expatriate
Keynes may have been right...

Yes, As I understand it, Keyenes was definitely right. A massive infusion of governtment cash will provide an economy with a healthy jolt - but ONLY if the cash infused is money from the government's current account. IOW, money it already owns.

Borrowed money causes inflation and like a drug addict, a government must borrow again when the first stimulus runs out and pay the borrowing costs on the whole lot of it. Whereas, the infusion of real cash begets a real return in the form of collecting solid tax receipts from a healthy economy.

25 posted on 04/24/2012 12:46:28 PM PDT by citizen (Obama blames:arab spring,banks,big drug/oil,bush,ceos,christians,coal,earthquake/tsumani,fnc,wall st)
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