Refutation of Keynesianism . . . but it continues anyway

debtAs money printing has increased, i.e., Keynesianism, GDP has trended down. The exact opposite of what is predicted by Keynesian theory. Why we’re looking for a major correction at the end of this year. Without growth, and there is very little of it, the U.S. will default on its debt obligations. The good faith and credit of the U.S. will be null and void. This will spook the capital markets and the stock market will sell off, because there can be no Trump stimulus and infrastructure spending without better growth which is clearly not the secular trend. In the immediate short term, the debt ceiling limit is back in place which means the U.S. government will run out of money soon to pay its bills, unless they are allowed to monetize more debt, i.e., the Fed simply printing up more money. That might prevent the short term day of reckoning, but the long term secular trend will be the complete debasement of the currency, which will force central banks to unload U.S. dollar denominated assets, meaning our treasury bonds. In which case interest rates rise and burst the debt bomb anyway. It’s over except for the shouting. America’s socialist experiments ending as all socialism does with defaults, bankruptcies, and liquidations. All that is required for any one of the above scenarios to occur is loss of confidence in the U.S. The globalists have destroyed that faith in the U.S. to attend to its own finances. This is predominantly why the U.S. will go to war, to distract Americans from the folly of the globalist establishment. A war must be risked to save the globalist movement. The secret here is that this strategy is the same one the neoconservatives used to bankrupt the former Soviet Union. You make the target country expend ever more money for the military, i.e., military Keynesianism, which bankrupts its finances. It has worked once again!

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