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Beyond The Age Of Usury


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It is generally agreed that casinos should, in the public interest, be inaccessible and expensive. And perhaps the same is true of Stock Exchanges." — John Maynard Keynes

What is particularly fascinating with John Maynard Keynes is that he wrote a theory that only works on paper since it assumes that monetary, political and financial managers will never abuse the power of indebtedness. So, what to think of this worldwide credit squeeze and its implemented cure that is no more less the cause of the disease and could spiral at any moment into a 'Greater Depression'. This week Gregory Mankiw, a professor of economics at Harvard, wrote a piece in the NYTimes asking openly what Keynes would have done to deal with the crisis. Just another nice but failed attempt to praise the Keynesian fairy tales. Mankiw cites the observation which links the root cause of economic downturns to insufficient aggregate demand. What demand when the consumers are completey tapped out in the first place? How can world governments create demand when they are literally bankrupt?

LONG/WITH TONS OF HYPERLINKS

http://www.un-debt.net/

Edited by goldissima
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"It is generally agreed that casinos should, in the public interest, be inaccessible and expensive. And perhaps the same is true of Stock Exchanges." — John Maynard Keynes"

Our gummint is more intent on making education (dumbing down + student loans) and transport (green? taxes and no public transport infrastructure) inaccessible and expensive to the masses. They've actively encouraged high level (stock market) and low level (bookies + lottery) gambling across the nation.

economicvoicedotcom

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Did Keynes really assume that we live in a perfect world where people don't abuse positions of power and mania doesn't take over in markets? I think he did. Also he failed to realise just how large speculative bubbles and non-economies (re: investment) can get. Is there a chart somewhere which shows how much money is invested in speculation of currencies or banks and large corporations vs how much is invested in small and medium sized businesses (the real economy!) ?

It seems due to the power of margin, leverage and the existence of these economies based largely on speculation (e.g. the oil market) that real wealth is being transferred to the super rich via the biggest, most expensive casino in history.

Edited by Saberu
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Did Keynes really assume that we live in a perfect world where people don't abuse positions of power and mania doesn't take over in markets? I think he did. Also he failed to realise just how large speculative bubbles and non-economies (re: investment) can get.

One of Keynes most famous quotes is that the market can remain irrational far longer than a person can remain solvent.

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