Tag Archives: Keynesian Cargo Cult

Here’s Why Wages Have Stagnated–and Will Continue to Stagnate

Mainstream economists are mystified why wages/salaries are still stagnant after 7+ years of growth / “recovery.” The conventional view is that wages should be rising as the labor market tightens (i.e. the unemployment rate is low) and demand for workers … Continue reading

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We’re in the Eye of a Global Financial Hurricane

The Keynesian gods have failed, and as a result we’re in the eye of a global financial hurricane. The Keynesian god of growth has failed. The Keynesian god of borrowing from the future to fund today’s consumption has failed. The … Continue reading

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Fed Up with the Fed

Is anyone else fed up with the Federal Reserve? To paraphrase Irving Fisher’s famous quote about the stock market just before it crashed in 1929, we’ve reached a permanently high plateau of Fed mismanagement, Fed worship and Fed failure. The … Continue reading

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2016 Theme #5: The Systemic Failure of High Finance

A number of systemic, structural forces are intersecting in 2016. One is the failure of high finance to fix the global economy’s systemic problems. The operative conceit of the past 7 years has been that high finance can fix whatever’s … Continue reading

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2016 Theme #3: The Rise of Independent (non-state) Crypto-Currencies

A number of systemic, structural forces are intersecting in 2016. One is the rise of non-state, non-central-bank-issued crypto-currencies. We all know money is created and distributed by governments and central banks. The reason is simple: control the money and you … Continue reading

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“Super-Welfare” Guaranteed Income For All Isn’t a Solution–It’s Just the New Serfdom

Jean-Paul Sartre famously wrote that Hell is other people. While this is undoubtedly true in cocktail party and workplace settings, in socioeconomic terms,Hell is a scarcity of positive social roles–the sources of positive identity, pride, purpose, community and meaning. Since … Continue reading

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Who Benefits When Bubbles Burst?

Blowing speculative bubbles cannot possibly lead to organic growth because speculative bubbles fatally undermine the real economy. An astute reader recently posed an insightful question: we all know who benefits from asset bubbles in stocks, bonds and real estate–owners of … Continue reading

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GDP = Waste

Any system that has no way to measure, much less prioritize, opportunity costs and maximization of utility is not just flawed–it is terribly misguided and structurally destructive. We’re told the gross domestic product (GDP) measures growth, but what it really measures is … Continue reading

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Is There Capitalism After Cronyism?

The more the Status Quo pursues the same old Keynesian Cargo Cult script of central planning and free money for financiers, the more self-liquidating the system becomes. Judging by the mainstream media, the most pressing problems facing capitalism are: 1) income … Continue reading

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Dear Keynesians: Your Sad Devotion to Your Failed Religion Hasn’t Conjured Up a Recovery–Here’s Why

That any schoolkid could predict eliminating feedback and consequences will lead to a series of disastrously poor choices by speculators and imprudent borrowers doesn’t register with the Keynesian Cargo Cult. The Keynesian Cargo Cult’s ability to print and squander money … Continue reading

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The Five-Year Fantasy Is Ending

Since these monetary/fiscal fixes (i.e. distortions) didn’t address the real issues, all they can possibly do is increase the magnitude of the next collapse. For five long years, we have pursued the fantasy that we could return to “growth” without … Continue reading

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