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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (44985)	1/8/2009 3:52:44 PM
From: Yorikke	5 Recommendations Read Replies (3) \| Respond to of 220194

Unlike the current administration, I believe there are many in the next that are very familiar with the concepts of Minsky. We may indeed lose a decade, but ours will be one of turmoil as opposed to the stagnation of the Japanese. I believe the problem lies in the decades old hijacking of Keynesian Theory by Neoclassical Monetarists; pushing the radical new theories of Keynes into an old pair of shoes, so to speak. For those unfamiliar with anything but insulting Keynes, this boils down to reinterpreting Keynes, substituting his contention that major economic cycles (depressions) can be avoided via fiscal policy, to one which asserts that ALL financial cycles (recessions and fear of slowdowns) can be avoided via monetary policy. (Greenspan was obtuse because he understood only partially what he was saying, and Bernacke is flagrant because he never believed Keynes from the start, and must have suffered as a child at the hands of man with plenty of money in his hands. The Obamans, I believe will focus on fiscal policy, attempt to reign in monetary excesses, and, over time, force both our economic feet and our currency back onto the ground. It will take time, and the conservatives and neo-Conservatives will-- already have-- announce that fiscal policy is a waste of effort, as if giving trillions to their priests in the banking industry has never happened. Fiscal policy is the most effective way, when the private sector is faltering, of getting money into a system that needs employment. Unlike giving it away, as the Neo-Conservatives hold, it at least funnels the money through relatively worthwhile endeavours--a highway as opposed to some banker's slut/escort account. Alas, I see a minimisation of the current Hoe and Pimp economy of the US--and the slow withering of all those voices on the tube who pull on your dick and tell you 'you gotta right to a blow job!' Anyway.....Keynesian economics is the tool for the today's problem. If one disputes this one might first bother to read the man. I believe that Paul Volker will guide the new administration toward this course of action. I do not see it ending in stagnation, but I don't know how we will handle the currency overhangs that the latest Conservative administration has handed the country. The idea that we can borrow money from our biggest enemies, and then screw them over, seems more than just a bit naive. The Chinese have a record of slitting the throats of those who steal their money, the Russians mix you a nuclear cocktail, and the Japanese, well the Japanese might just stop selling us their cars--and in two years we will all be walking as the crap from Detroit rots on the streets. Aloha from Pair-o-dice Yorrike