In other words, one year after the official end of the recession, the economy shows no signs of booming. Emergency Keynesian policy measures taken to keep the debt crisis from devolving into a 1930s deflationary spiral show signs of losing effectiveness, and the self reinforcing economic growth story is giving way to talk of a “double dip” recession, as trouble in Europe
July 2nd, 2010 | Eric Janszen | 11 comments | ContinuedAll Posts Tagged With: "Keynes"
Vandalism vs Keynesianism
With short-term real interest rates on U.S. government bonds effectively negative, we’ve wondered lately why so many people complain that gold doesn’t have a yield (either). But it’s true. It doesn’t. It just sits there looking pretty and yellow and heavy – preserving value and capital better than other kinds of money in which you can choose to denominate your wealth.
June 28th, 2010 | Dan Denning | 8 comments | Continued
Taming the Vigilant
Free markets! It’s a government institution – the U.S. Federal Reserve – that is providing the liquidity, via low interest rates and outright buying of government securities, to keep bond yields low. That’s the opposite of free markets.
June 21st, 2010 | Nickolai Hubble | 1 comment | Continued
Stimulating What?
If the economy tries to revert back to providing something of value, it will notice that capital, resources and employment will have to be reallocated. This is not a fun process. It is called a depression. But if you don’t have the depression, you will continue to misallocate the capital into malinvestments, which turn out to be worthless to the economy in real terms.
June 5th, 2010 | Nickolai Hubble | 44 comments | Continued
Krugman Strikes Again
Although there is far more happening in the world outside of Mr. Krugman’s brain than within it, fresh drivel from the acclaimed Nobel Prize winner compels me to turn my focus there once again.
In today’s column, Krugman analyzes the Greek debt crisis,
Talk of Chinese Property Investors Bidding Up Australian Property Prices
Having our flagship resources industry rely on foreign credit and politically driven Chinese demand is unstable enough. Now our house prices rely on them as well!
April 4th, 2010 | Nickolai Hubble | 9 comments | Continued
In a Properly Functioning Economy Prices Go Up and Down
Here at The Daily Reckoning, when we go into a liquor store and find lower prices, we are delighted. We stock up. But we are clearly out of step with mainstream economists.
March 1st, 2010 | Bill Bonner | 2 comments | Continued
Most Likely No Housing Recovery to Bubble-Era Levels in Our Lifetimes
Of course, that is not what the President of the United States of America thinks. He believes a recovery is underway…and that he can now take action to reduce the feds’ stimulus.
January 29th, 2010 | Bill Bonner | 0 comments | Continued
Mainstream Economists Congratulate Themselves
There must be some dark corner of Hell warming up for modern, mainstream economists. They helped bring on the worst bubble ever…with their theories of efficient markets and modern portfolio management.
January 11th, 2010 | Bill Bonner | 0 comments | Continued
Harding the Last American President to Deal Honestly With a Major Financial Crisis
Just look up Warren Harding on Wikipedia. The first entry you will find is not the 29th president of the United States of America, but a rock climber with the same name.
October 26th, 2009 | Bill Bonner | 12 comments | Continued
Cash is Created When the Feds “Monetize the Debt” by Buying US Treasury Bonds
Are you kidding, dear reader? After being the single largest buyer on the planet? Imagine what will happen to the bond market when investors realize that the Fed is selling! It’s not going to happen.
October 23rd, 2009 | Bill Bonner | 5 comments | Continued
US Federal Government Ran the Biggest Deficit in History
In theory, the US government could do the same. But, in fact, it never runs significant surpluses. There are too many people who want too much bread and too many circuses. And you don’t win votes by denying the voters…
September 30th, 2009 | Bill Bonner | 2 comments | Continued
Public Works Done Right
John Maynard Keynes once argued that, in a depression, it would be worthwhile to pay workers to dig holes, and to pay other workers to fill them up. But, as Nathan Lewis points out, below, when short-term “stimulus” becomes the focus, the effect is more likely to be short-term welfare. Read on…
February 19th, 2009 | Nathan Lewis | 7 comments | Continued
Wall Street Gets the Boot
Yesterday, President Obama, seeing Wall Street on the mat, walked over and gave it the boot. The $18 billion in bonuses, paid out on to Wall Street honchos last year, were “shameful,” said he. It was the “height of irresponsibility” to take so much capital out of the system when it was losing money, he pointed out. Of course, he’s right. It was certainly irresponsible. And the Wall Street crowd deserves the boot, no doubt about it. But it’s a shame no one mentioned it in 2006 or 2007 – not even Mr. Obama – when the bonuses and the irresponsibility were even higher…
February 2nd, 2009 | Bill Bonner | 0 comments | Continued
Keynesian Economists Bluff in Global Economic Gamble
One step forward, three steps back. That’s what the trading action looks like in the markets now. For every big one day advance of 1% to 5% or more, you’re going to get a corresponding sell off equal or greater to that. It’s not normal to see these kinds of one-day moves. But these aren’t normal times. We’re back on the edge of a credit abyss. Just when investors were convinced that the Gordon Brownification of the world’s banking sector had put the credit crisis behind us, we have more bad news.
October 16th, 2008 | Dan Denning | 3 comments | Continued
