Keynes
Explains Gold - Keynes Gets It Wrong
QUOTE
In truth, the gold standard is already a barbarous relic. All of us, from the
Governor of the Bank of England downwards, are now primarily interested in
preserving the stability of business, prices, and employment, and are not
likely, when the choice is forced on us, deliberately to sacrifice these to the
outworn dogma, which had its value once, of £3:17:10½ per ounce. Advocates of
the ancient standard do not observe how remote it now is from the spirit and the
requirements of the age. A regulated non-metallic standard has slipped in
unnoticed. It exists..............
Therefore, since I regard the stability of prices, credit, and employment as of
paramount importance, and since I feel no confidence that an old-fashioned gold
standard will even give us the modicum of stability that it used to give, I
reject the policy of restoring the gold standard on pre-war lines. At the same
time, I doubt the wisdom of attempting a "managed" gold standard jointly with
the United States, on the lines recommended by Mr. Hawtrey, because it retains
too many of the disadvantages of the old system without its advantages, and
because it would make us too dependent on the policy and on the wishes of the
Federal Reserve Board.
UNQUOTE
Keynes was half
right and half wrong; disastrously so. He spoke in favour of stability while
unleashing the forces of greed. Politicians were able to buy temporary
prosperity by running the printing presses faster, thus defrauding
The Forgotten Man, the man who prays, the man
who pays. In Germany it was
Hyperinflation. In
England it is being done more slowly, but the effect is the same. It is
just like
Counterfeiting, major crime when honest men do it but governments give
themselves a pass on it. It has been used to reduce the value of the
American dollar by some 98% since the Federal Reserve was set up.
Lessons from the Financial Crisis
QUOTE
Underlying a stable financial system, we also want a sound monetary standard and
again the 19th century provides a role model. This was the Golden Age of
the gold standard.........
Keynes famously told us that the gold standard was a relic of a barbarous age, and reassured us that modern governments were much too sophisticated to debase the currency. Modern governments were not like impecunious Roman emperors or medieval kings.
The results were catastrophic, but Keynes was right about one thing.
Modern governments were not like Roman emperors or medieval kings: they
were much worse, and produced much greater inflation rates than
their predecessors ever managed to achieve.
UNQUOTE
Smooth talking
comedians with brains impose themselves on fools, who are running on habit,
driven by greed then it all goes horribly wrong.
He looks cunning and ugly.
John
Maynard Keynes ex Wiki who was keen on eugenics as well as little boys
John Maynard Keynes, 1st Baron Keynes,[1]
CB
FBA (
/ˈkeɪnz/
KAYNZ;
5 June 1883–21 April 1946) was a
British
economist whose ideas have profoundly affected the theory and practice of
modern
macroeconomics, as well as the economic policies of governments. He greatly
refined earlier work on the causes of
business cycles, and advocated the use of
fiscal and
monetary measures to mitigate the adverse effects of economic
recessions
and
depressions. Keynes is widely considered to be one of the founders of modern
macroeconomics, and to be the most influential economist of the 20th century.[2][3][4][5]
His ideas are the basis for the
school of thought known as
Keynesian economics, as well as its various offshoots.
In the 1930s, Keynes spearheaded a revolution in economic thinking, overturning the older ideas of neoclassical economics that held that free markets would, in the short to medium term, automatically provide full employment, as long as workers were flexible in their wage demands. Keynes instead argued that aggregate demand determined the overall level of economic activity, and that inadequate aggregate demand could lead to prolonged periods of high unemployment. Following the outbreak of World War II, Keynes's ideas concerning economic policy were adopted by leading Western economies. During the 1950s and 1960s, the success of Keynesian economics resulted in almost all capitalist governments adopting its policy recommendations.
Keynes's influence waned in the 1970s, partly as a result of problems that began to afflict the Anglo-American economies from the start of the decade, and partly because of critiques from Milton Friedman and other economists who were pessimistic about the ability of governments to regulate the business cycle with fiscal policy.[6] However, the advent of the global financial crisis in 2007 caused a resurgence in Keynesian thought. Keynesian economics provided the theoretical underpinning for economic policies undertaken in response to the crisis by Presidents George W. Bush and Barack Obama of the United States, Prime Minister Gordon Brown of the United Kingdom, and other heads of governments.[7]
In 1999, Time magazine included Keynes in their list of the 100 most important and influential people of the 20th century, commenting that: "His radical idea that governments should spend money they don't have may have saved capitalism."[8] In addition to being an economist, Keynes was also a civil servant, a director of the British Eugenics Society, a director of the Bank of England, a patron of the arts and an art collector, a part of the Bloomsbury Group of intellectuals,[9][10] an advisor to several charitable trusts, a writer, a philosopher, a private investor, and a farmer.
The Economic Consequences of the Peace
This come from Keynes
QUOTE
Lenin is said to have declared that the best way to destroy the
Capitalist System was to debauch the currency. By a continuing process of
inflation, governments can confiscate, secretly and unobserved, an important
part of the wealth of their citizens. By this method they not only
confiscate, but they confiscate arbitrarily; and, while the process
impoverishes many, it actually enriches some. The sight of this arbitrary
rearrangement of riches strikes not only at security, but at confidence in
the equity of the existing distribution of wealth. Those to whom the system
brings windfalls, beyond their deserts and even beyond their expectations or
desires, become "profiteers,", who are the object of the hatred of the
bourgeoisie, whom the inflationism has impoverished, not less than of the
proletariat. As the inflation proceeds and the real value of the currency
fluctuates wildly from month to month, all permanent relations between
debtors and creditors, which form the ultimate foundation of capitalism,
become so utterly disordered as to be almost meaningless; and the process of
wealth-getting degenerates into a gamble and a lottery.
Lenin was certainly right. There is no subtler, no surer means of
overturning the existing basis of society than to debauch the currency. The
process engages all the hidden forces of economic law on the side of
destruction, and does it in a manner which not one man in a million is able
to diagnose.
UNQUOTE
Some he was right.