We need Keynes, according to Bloomberg BusinessWeek

[rogerashton]

Is there a doctor in the house? The global economy is failing to thrive, and its caretakers are fumbling. Greece took its medicine as instructed and was rewarded with an unemployment rate of 26 percent. Portugal obeyed the budget rules; its citizens are looking for jobs in Angola and Mozambique because there are so few at home. Germans are feeling anemic despite their massive trade surplus. In the U.S., the income of a median household adjusted for inflation is 3 percent lower than at the worst point of the 2007-09 recession, according to Sentier Research. Whatever medicine is being doled out isn’t working. Citigroup (C) Chief Economist Willem Buiter recently described the Bank of England’s policy as “an intellectual potpourri of factoids, partial theories, empirical regularities without firm theoretical foundations, hunches, intuitions, and half-developed insights.” And that, he said, is better than things countries are trying elsewhere.
There is a doctor in the house, and his prescriptions are more relevant than ever. True, he’s been dead since 1946. But even in the past tense, the British economist, investor, and civil servant John Maynard Keynes has more to teach us about how to save the global economy than an army of modern Ph.D.s equipped with models of dynamic stochastic general equilibrium.

http://www.businessweek.com/articles/2014-10-30/why-john-maynard-keyness-theories-can-fix-the-world-economy

[alterfurz]

1. "Capitalism is the extraordinary belief that the nastiest of men for the nastiest of reasons...

...will somehow work for the benefit of us all." -- John Maynard Keynes

[Warpy]

2. My sig line!

Keynes came up with the only model which works in practice, something right wing wankers have never forgiven him for.

I couldn't believe they gave Milton Friedman a Nobel for his twaddle but then I suppose they found it undreadable and awarded it for the density of the prose, not the soundness of the ideas. Or maybe they just took leave of their senses, they awarded Kissinger a peace prize. Kissinger!

What rich men hated about Keynes was what they called stagflation, a rock stable economy in which they weren't able to make killings and that had inflation of 3-4% a year until the OPEC triple energy costs started to drive the cost of everything up. They blamed the high cost of labor (of course) and lied and cheated that boob Reagan into office.

Inflation is built into fiat currency and it never flattened, not really, not even with declining wages. Stockman spilled the beans about the disaster and both Reagan and BushI had to turn to Keynes to stop the hemorrhage of money from the treasury; that and raise OASDI six times.

The rich were able to make a killing in the stock market after Ronnyboy gave them a tax windfall. However, with the larger economy ticking over only because people were going into debt to make up the shortfall low wages caused, they weren't earning as much on those high priced stocks.

It's high time to go back to John Maynard and his brilliant model. I just don't think a party completely owned by the Koch boys and a party partially owned by banking lobbyists are going to do it any time soon. We all know the economy will suck until they do. We might have to wait until Chuck and Dave kick the bucket to see a return to rationality.

[jtuck004]

3. "return to rationality." < Or...corporate force is strong, and could run us all into the dirt. n/t

[4dsc]

4. The end of cheap resources is the problem

and its only going to get worse in the future. The sooner people realize we need to change our way of life and live with less resources the better off the world will be.

[Wellstone ruled]

5. There is something afoot in

Europe. Seems the mega wealthy are concerned with the huge income disparity that has developed. We always read about the Bildibuger Group and other mega rich get togethers. Seems thy are worried now about the rising resentment that is building around the world by the worker class. Remember the pitch fork and torches theory,well,the Rothchilds and other mega rich are scared and they know that the present system is unable to sustain it's self. The big test will come this week,will we see more money pumped into the economies of Germany France England and other EU countries. If this goes as forcasted,the U.S. stock market will take off like a rocket. But,if we continue with the no tax on the rich and do not do some type of income distribution plan meaning start taxing the rich,we will see a world recession by the start of 2016. There have been many stories about this in the Gaurdian,not in our POS media.