Obituary: Keynesian economics, the General Theory (1936 – 2015)

So, after all the Keynesian stimulus spending – all the borrowing to finance the Keynesian deficits – all the currency printing and distribution by the national bank to make sure the bonds with all the zeros were "bought" – all the low Keynesian interest rates – all the brief, momentary increase in demand for commodities and consumer goods – all the restated and revised and recalculated economic metrics and strange unemployment statistics that only count those who are “looking” for work or some such Keynesian rationale – we ask, using our highly trained and disciplined Keynesian economics mind overflowing with our grandiose Keynesian vocabulary, “Where’s the beef?”

Europe is in the doldrums, economically that is (at least we're not alone.)  High deficits – high debt – low productivity – zero economic growth that is actually negative if anyone bothered to do a real inflation adjustment as opposed to the political calculations that now substitute.  Those states that have religiously followed the General Theory; you know them as Greece and Spain and Italy and a few more, all busted.  Bankrupt.  Awash in debt up to their eyeballs.  Cannot survive without handouts from the winning states that do not embrace your rabbi, your pastor, your imam – John Maynard Keynes (1883 – 1946.)

Were Keynes to reappear and revisit the application of his General Theory – save for a rainy day; spend when the clouds and downpours arrive – get back on track – repeat; he would probably point out that you/we did everything he offered except the first step – the save for a rainy day step.  Instead he would point out that we stimulate modestly or moderately or even generously when times are good (no rainy day savings needed when times are good) and then we accelerate into the stratosphere  when times are bad.  What is left?  Print money.  Devalue.

Keynesian economics is dead for all who think.  For those who don’t which is now most of the democratic republics of the west (question for those who think beyond the moment:  do the Islamic republics follow the General Theory?) we suggest that the leaders continue vigorously with their well established behaviors – tell the people things are good and getting better; jimmy the stats and revise as needed to justify their behavior; steal and accumulate as much as possible from the public tax revenues that were collected for public needs; and keep the G-V’s close at hand, fueled and ready for immediate take off.  Get you to your island retreats in the sun.  With the high walls.   Where you can sip smooth scotch – work on your tan (or golf swing) and live out your days giggling over the heydays of the General Theory.