Deathbed of Keynesian Economics Will Be in U.K.

By Matthew Lynn

Feb. 23 (Bloomberg) -- The U.K. has produced notable economists over the years, but John Maynard Keynes, the guru of government intervention, was one of truly global significance.

So it may be fitting that the U.K. will also become the deathbed of Keynesian economics.

Britain has been following the mainstream prescriptions of his followers more than any developed nation. It has cut interest rates, pumped up government spending, printed money like crazy, and nationalized almost half the banking industry.

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Comment: This article makes a good point, Keynesianism is on its deathbed - much like global warming - but the much like that issue the troops will circle the wagon and toss out red herring after red herring to save the Orthodoxy.

What Didn't Happen: Krugman Telling the Truth

By William L. Anderson

In reading Paul Krugman's missive today in the New York Times, "What Didn't Happen," I am reminded of Orwell. According to the Great Nobel Laureate, Krugman insists that we believe the following:

• The "stimulus" was "too small"
• The Obama administration was not "tough enough" with the banks (he should have nationalized them, I suppose -- but, then, they pretty much are nationalized already)
• Obama did not do as did Ronald Reagan and blame the previous administration.

I must admit that I admire Krugman's chutzpah at one level. Here is a guy to has the guts to claim things that patently are not true and are easily debunked, but he is able to do with (without any sanctions) in the editorial section of the NYT and get away with it, mostly because his employers at Princeton University and in New York are happy to promote his untruths.

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Comment: William Anderson owns arch- Keynsian Krugman's backward logic on the Obama administrations first year policies. Krugman obviously in the Keynesian wonderland!

Is The U.S. Economy Being Tanked By Mistake or By Intent?

The government wants Americans to believe the greatest economic collapse in history was the result of ineptness and mistakes yet still have confidence in their financial institutions.

Should American bankers be let off the hook because they self-declare, before an investigational panel, that the failure of their newly invented risk swaps and other highly leveraged investment schemes was simply due to "mistakes"? Not malfeasance – just every-day mistakes? Bankers just fell asleep at the helm at a critical juncture in American history. Is that what we are being led to believe?

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Krugman Without a Clue

By William L. Anderson

Even when Paul Krugman gets it right, he still gets it wrong. Now, I am not someone who is a knee-jerk critic of the guy, although I generally expect Krugman to blame the wrong people and recommend the wrong "solutions."

Thus, when I saw the title of his most recent column, "Bankers Without a Clue," I thought that this might be the day that I can read a Krugman column without cringing. Perhaps, I imagined, he might even use the "bankster" term that I have seen from so many libertarians and Austrian economists. Ah, hope!

Unfortunately, Krugman gave us his tired analysis, and in doing so, he also demonstrated that he was clueless himself about the stagflation of the 1970s. (After all, Krugman being a True Believing Keynesian believes that we should not have both inflation and rising unemployment, since he already has written elsewhere that almost any economic problem can be solved by…printing more money.)

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The Myth that Is FDR

By Garet Garrett

When John T. Flynn has put the Roosevelt myth through his terrible wringer and thrown aside the empty sack, all that remains of it is — the myth. His book will not be challenged on grounds of fact. He has a special way with facts. He brings them together in piles like fissionable material, and then suddenly a pile explodes with atomic effect, even though there had been nothing new in the facts. Many of them you already knew and had forgotten. But the secret of a myth is no more explained by facts than the secret of life is explained by anatomy. It may be that for good or bad the man of myth is an instrument, and if that is so, he would be unable to account for himself, or, trying to give reasons, would give wrong or puerile reasons, not knowing any better.

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Comment: A major plank in the Establishment/Keynesian myth - Roosevelt. Somehow Hoover was "laissez-faire" and blew out the economy and the compassionate Roosevelt came in to save the day. All a part of a fallacious myth.

Dollar Crisis Looms if US Doesn't Curb Debt: Experts

The United States must soon raise taxes or cut government spending to curb its debt, and failure to act will risk a crippling dollar crisis as investor confidence ebbs, a panel of experts said on Wednesday.

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Prosperity Through Road Construction: Shoveling Something Other Than Dirt

By William L. Anderson

One of the constant themes of modern socialism (and Keynesianism) is the belief that we can create prosperity through government spending on roads. Mind you, roads can help an economy if they are located in places where they can aid commerce by making it possible for relatively cheap transportation that permits wider uses of division of labor.

However, that is not why people like Paul Krugman and other socialists champion tax-funded road building. Instead, they insist that the money spent in itself will revitalize the economy, and that is pure nonsense. Interestingly, this past year has seen a huge amount of government "public works" spending, but the effects have not been what the Krugmanites/Socialists have claimed.

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Krugman on Bad Actors

By Robert P. Murphy

In a recent New York Times column, Paul Krugman lamented our society's lavish rewards for bad actors. No, he wasn't criticizing the original cast of Star Trek. Rather, Krugman was bemoaning the hefty earnings that accrue to financial executives. Unfortunately, Krugman's critique is riddled with irrelevant paper citations and internal contradictions. The shocking abuses in today's financial markets would end immediately, if only the government would get out of the sector entirely.

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Comment: Paul Krugman is a high priest of the State. He's following in Keynes's footsteps in ignoring multitudes of economic data in order to promote his ideology - let the state destroy an economy in order to achieve an permanent boom.

EconomicPolicyJournal.com: Does the Fed Want to Crash the Housing Market a Second Time?

EconomicPolicyJournal.com: Does the Fed Want to Crash the Housing Market a Second Time?

There is a curious rule change that was made at government controlled Fannie Mae. And it was announced on one of the top news dump days of the year, December 24, Christmas eve, when you were away visiting relatives.

Keynes and Bernanke on Bubbles and Manias: Blame the Free Market

By Gary North

In 1936, John Maynard Keynes' book appeared: The General Theory of Employment, Interest, and Money. It changed the world. It justified in the name of economic theory what governments had been doing since 1932: running deficits and creating fiat money. Keynes' ideas took over. Today, they are dominant. The 30-year break, 1978-2008 -- Chicago School, rational expectations, efficient market theory -- is over. Academic economists, like Dorothy in Kansas, ran for the Keynesian storm cellar. Unlike Dorothy, they made it. No trip to Oz for them!

In chapter 12, he contrasts enterprise with speculation. This is conceptually incorrect. Both rely on accurate forecasting. Both rely on transferring assets to a specific market position. He made speculators sound like gamblers. They aren't. The emotions may be the same, but the economics are different.

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Comment: Great article showing some of the many ways Keynes was ignorant of basic economic theory YET many of our State sponsored academics parrot those nutty theories and even base policy on them! Keynesianism is creed of the economic priest class - it's the economic "theory" that most justifies the Corporate State.

Keynes, the Man

By Murray N. Rothbard

John Maynard Keynes, the man — his character, his writings, and his actions throughout life — was composed of three guiding and interacting elements. The first was his overweening egotism, which assured him that he could handle all intellectual problems quickly and accurately and led him to scorn any general principles that might curb his unbridled ego. The second was his strong sense that he was born into, and destined to be a leader of, Great Britain's ruling elite.

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Comment: Look for more stories about Keynesianism on here, it is a great intellectual tool of our Masters and is essentially neo-mercantilism. The Austrian School has been great to debunk this tired, archaic, yet popular form of oppression.