Keynes Is Dead – This Is The ‘Long-Run’


Zero Hedge: John Maynard Keynes, an English economist and author, has been held in high esteem for several decades thanks to his groundbreaking work in economics in the early 20th century. The theory he popularized in an attempt to better understand the Great Depression, aptly named Keynesian theory, revolutionized demand-side economic policy at the time.

For those who haven’t studied the riveting subject of macroeconomics since college – sarcasm, of course, for everyone out there that doesn’t live and breathe the subject like we do – Keynes advocated for increased government spending and lower taxes to stimulate economy activity, especially during times of economic hardship. Subsequently, long after his death, Keynes’ disciples proposed that optimal economic performance could be achieved through frequent “fine-tuning” by government monetary and fiscal policies (i.e. interest rates, relative to the former, and taxes/spending in the case of the latter).

Consequently, like so many well-intentioned policy initiatives meant to cope with emergency conditions, Keynes’ prescription has morphed into constant application even during mild cyclical downturns. Moreover, the other part of his master plan—to run surpluses during good times–has been almost totally ignored by election-driven politicians (are there any other kind?). more

Opinion: Now that the world’s well-intentioned Keynesian central bankers know that they can print money (QE) whenever there is an emergency condition, logic dictates that it is just a matter of time before it will be needed again. Actually, in Europe QE never stopped, which is why economic growth is approximately 1.4%, well below the 3% needed to bring new people into the work force.

Which is also why interest rates in Europe are still near zero. The European Central Bank knows that if they try to raise interest rates to normal levels, several EU nations could collapse. It does not take a PhD in economics to grasp that when a person, or nation, has to print counterfeit to pay their bills, something is terribly wrong.

The worst part is that many people in the US think money printing worked. The stock market is up, economic growth is back and unemployment is low. What could go wrong?

We like to work back from what we absolutely, positively know will happen.

When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand.  And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.” Revelation 6:5-6

The global Black Horse judgment finds a person working a full day to have enough money to buy food for that day. The oil and wine represent the uber-rich who will escape until the final judgments.

What precedes the Black Horse, however, is the taking up (1 Thess. 4:16-18) of tens of millions of taxpayers from the US and EU, who just happen to have the largest Christian populations.

Hyperinflation, like the rapture, happens suddenly.