Posted tagged ‘Vladimir Lenin’

Keynes Was Correct In 1919!

March 30, 2013
John Maynard Keynes

John Maynard Keynes (Photo credit: Steve Hunnisett)

When Keynes wrote in “The Economic Consequences of the Peace”,  (1919) “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” , little did he or we know how correct he was.

The Feds policy of counterfeiting money, and artificially lowering interest rates, created and grew the U.S.’s housing bubble from 2000 to 2007. Market forces tried to liquidate this misallocation of scarce resources (the bubble, which was the result of the Feds policies), starting in late 2007, but the Fed wouldn’t allow the correction to happen. It propped up a false bottom by (more…)