There is no limit to what the government will spend with “money” that simply does not exist. Governments continue to borrow perpetually with no real intention of paying back their debts
This is one piece of the Sovereign Debt Crisis that will implode like a nuclear bomb the likes of which we have never witnessed
John Maynard Keynes in his 1936 book, ‘The General Theory of Employment, Interest and Money,” argued aggregate demand was too volatile to be stable and would lead to inflation or recessions. His theory honed in on spending as a means of price control. Low aggregate demand, Keynes argues, would lead to high unemployment and stagflation. Government could intervene through fiscal policies to increase aggregate demand, as an example, increased government spending could tame inflation. Interest rates, according to Keynes, could also be modified to encourage spending and stimulate demand. So why are these theories failing miserably today?
To begin, the United States had a balanced budget when Keynes presented his theory. The government is now the biggest borrower, acting in its own self interest under Adam Smith’s theory of the invisible hand that Keynes spent his career attempting to deny. According to Keynes, “there is no self-correcting mechanism in a free market economy that automatically restores full employment.” He believed that the government could change the business cycle but arguably regretted this notion on his deathbed.
Keynesian economics gave the government the green light to manipulate the economy, or at least make numerous failed attempted to do so. There is that old joke about communism that you can vote your way in but must shoot your way out, seemingly fitting to the utter disaster governments have created in regards to our economic situation.
Keynes quote on Invisible Hand
The government is by far the biggest borrower. Raising interest rates can have no impact on demand, as the government will simply borrow more, and the central banks simply have no say. During the Great Depression, for example, Washington forced the Federal Reserve to implement QE policies to artificially lower rates to increase demand. Yet, when Washington ordered the Federal Reserve to do the same during the Korean War in 1951, the central bank first broke with Washinton and refused to comply as it knew it would hurt the economy as America’s budget was no longer balanced.
Quantitative Easing destroyed the Keynesian model, and there is now no other alternative for central banks to control the economy. If they raise rates, the budget explodes. The Keynesians advocate manipulating demand and advocate fiscal spending that the central bank cannot control. However, the other part of Keynesianism is the manipulation of taxes. Keynes argued that to stimulate demand, you lower taxes. He saw this correctly, but again, it does not fit with government agendas.
There is no limit to what the government will spend with “money” that simply does not exist. Governments continue to borrow perpetually with no real intention of paying back their debts. This is one piece of the Sovereign Debt Crisis that will implode like a nuclear bomb the likes of which we have never witnessed. The business cycle cannot be manipulated, and what’s more, the Keynesian model cannot account for declining confidence in both government and the economy.
Armstrong Economics
Me: BOOM at sometime really soon - thank Trump and Biden, not if, but when it happens.
Interested to read the increase in jobs available in America this past month, were all filled by Illegal Immigrants - must be the shit wages they got paid, that the average American can’t live on
Ah, Yes, that post - updated with this one: Who vaccinated, would not want to be a countermeasure prototype: Donald Trump's tenure as the 45th president of the United States began with his inauguration on January 20, 2017, and ended on January 20, 2021. Wikipedia - note "2017-2021"
The Defense Production Act has played a role in the U.S. government’s response to COVID-19 (from about November 1st 2019 US virus release date ) pandemic.
President Trump declared a national emergency in March 2020, making the pandemic eligible for government action under the Defense Production Act.
President Trump said he invoked the Defense Production Act more than 100 times to facilitate Operation Warp Speed.
Trump has made the vaccinated all part of a "US Army experiment" and when you re-elect him, he will finish the job on behalf of his masters, whoever they are, but let us presuppose they are those I have identified in the final paragraph and others.
The vaccinated are countermeasure prototypes, for the US Army, to see the objective of a Covid-19 (vaccines) countermeasure, in the impairment of the operational effectiveness of enemy activity" by spike protein,the most antigenic and toxic part of a coronavirus" (vaccine) based on the measurable effects of their (the vaccines) deployment", by the US military's own definitions of terms used in Operation Warp Speed contracts, the (vaccine) products it commissioned "amount to bioweapons" and the vaccinated are part of the US Army experiment to see the effectiveness of their Covid-19 vaccines weapon, as explained below:
The injection of these "countermeasure prototype vaccines" which satisfy the US military definition of a biological agent into people has killed some recipients and permanently disabled increasingly large numbers of others, "resulting in their (vaccines) operational effectiveness based on the measurable effects of their (vaccines) deployment", by the US military's own definitions of (vaccines) terms used in Operation Warp Speed contracts, the (vaccines) products it commissioned "amount to bioweapons".
The US military defines a biological agent as a micro-organism (or toxin derived from it) that causes disease.
Vaccines are regulated by the US Food and Drug Administration as biological products, therefore they can be described as biological agents.
The mRNA (ModRNA) products instruct recipients cells to make a form of its spike protein, the most antigenic and, some researchers argue, toxic part of a coronavirus.
Since December 2020, 5.5 billion people, 72 per cent of the global population, have been injected with Covid-19 vaccines commissioned under Operation Warp Speed by the US Army "as countermeasure prototypes", by 2024 at least 8 billion people out of 8.5 billion people have been vaccinated with these bioweapons.
By the US military's own definition, The US Army Covid-19 vaccines bioweapon provides "the objective of a countermeasure which is the impairment of the operational effectiveness of enemy activity" by spike protein,the most antigenic and toxic part of a coronavirus,as a weapon,is proven,but for the vaccinated, they are the vaccine experiment then.
Trump followed on by Biden. Excuse me for saying so, but after the world populations have been decimated down to 250 million, more or less by 2025/26, by this US Army bioweapon, who will be left to use it on?
Refer back to the beginning of my above article and read it again, if you missed something, from my "Update 2".
I can't help wondering if the Elite, comprising Putin, Trump, Biden, Xi and other world leaders and the unseen billionaires, the WHO, WEF, etc, are in this together, but playing their parts to make we, the "Human Rubbish" of their societies, think there are warlike political divisions between us, when those divisions are for "your" show, just to fool you, while your extermination continues unregulated.
It is what I've been saying in my substack these past 4 years, I just never had the facts to prove my theories, now I do.
Whoever you are, wherever you work, vaccinate the Elite in your sphere of influence and make your vaccinated problems theirs too but leave their Human Rubbish, who we are, alone.
The full version is in my post before this one on my free substack - read it through and confirm if my assumptions are correct, to your satisfaction
when you have a debt ceiling debates every single year :) you know that it makes 0 sense...the thing is they have destroyed free market in 2008! 2008 Lehman Brothers fall, and 2020 QE? does it make sense? no, not at all. this means someone has been manipulating free market for a long time, this big lie did not happen overnight, it takes time too to build super lie. Free market is the best vehicle, together with democracy humans could haev invented. It is based on love: love includes freedom of choice!