How Government Spending (Unaccountable and Unmonitored) Drove Up Inflation

The rest of the money was laundered to Hunter, Joe, Hillary, Nancy, Schumer, Obama, Congress and the other millionaires not suffering during inflation. The middle class got buggered. They are the 1% they want us to hate.

Look at Steven Miller 4 meme’s below for the bookend to this next one.

And Peppermint Patti Psaki was so proud of her lie last year.
Mauricio Godoy can understand this one.
And he does anything the opposite of what Trump did for our Nation for spite, and it turned to shit.
Except at election time when the politicians lie and promise free money, insurance, tuition, phones, mortgages…

It always ends with this when you listen to the current administration. It started with Wilson, FDR, BJ Clinton, both Bushes, Obama and Joe. If you think they have your interests in mind, you are sadly mistaken.

Build Back Better; The Death Of Keynesian Economics

By death, I mean the first time it was allowed to be fully implemented and the world can see the destruction of deficit spending. It is how it will end when Keynes is allowed to play out without interference.

I’ve always wondered what could happen in a pure Milton Friedman or Keynes economy. It’s been more Friedman since the failure of the The New Deal, a Keynesian try and spending your way out of a depression. Of course WWII and a good economy actually did it, supporting Friedman, but it hasn’t stopped many presidents since then of trying it. Friedman’s capitalistic ideas brought more freedom and prosperity than the current philosophy

I don’t think they believe anything about Keynesian economics other than the part about government spending, because the Keynesian politicians use to to launder money back to into their pockets.

We know the New Deal (like the Green New Deal) failed and just spawned other failures like welfare, the Great Society and now Build Back Better.

At least we know how it turns out in a Keynesian model now, Build Back Broke. It gives power to the few and the government, which is not how our republic succeeds.

Everyone can see our economy being destroyed. Gas prices, food shortages, wars, inflation, border security…all there in back and white. They are socialistic policies that have a zero record of success.

From The American Thinker;

The motto of the interloper now serving in the White House is “Build Back Better” – and the trillions to “build back” is an updated version of the New Deal on steroids. The Dems spend to a new level of excess which, for them, is ecstasy. In fact, a better name for their spend, spend, and spend more programs should be “Excess Ecstasy Exhilarates.” The foundation of the New Deal was found in the economic theory of John Maynard Keynes. Keynes was a British economist who developed the theory of ‘deficit spending’ – the idea that the government going into debt would jump-start the depressed economy which, then, would experience reinvigoration. There would be more employed, tax-paying citizens as well as corporate profits which would, in turn, restore the needed balance to the federal books. The deficit spending would restore a solvency that was lost due to the Great Depression.

In practice, this did not work out (unemployment was still in double digits throughout the 1930s), but because of the passage of the Wagner Act, which made it easier for workers to organize into unions, and because of the use of the radio for the well-known “Fireside Chats” – a real novelty in American politics which intensified public support for FDR – and because of residual anger towards the Republicans who had maintained power throughout the 1920s and were thus assumed to be the ones who had caused the Depression, Keynesian economics became the go-to model for economic policy in the United States for all decades since that time. 

However, the Keynesian model has been weaponized under Build Back Better in a most sinister way. The present shift is to make us more amenable to the globalist fantasies gaining popularity in recent decades to ensure a transition towards world governance and a cooperative world economy (rather than a competitive one) under the cloak of “meeting needs” and “sustainability.”  These two concepts are key pillars in a document written and published by the United Nations called Agenda 2030. Although the original United Nations Universal Declaration of Human Rights of 1948 stressed the need for individual rights after WWII and promoted those rights in nearly every sentence of that document, the present document – Agenda 2030 – only refers to rights in one of the ninety-one sections: Section 19.

Instead of rights, needs are emphasized. This is consistent with the Communist Manifesto authored by Karl Marx and Friedrich Engels in 1848. A key principle in that document is “from each according to his ability, to each according to his needs.” The actual needs of people would be the uppermost goal of envisioned communist society rather than ideas like rights, freedom, responsibility, property ownership, pursuit of happiness, or even security. The new communistic premise is that if needs are met then people will automatically experience security and happiness and will not need the abstract fluff of such bourgeois, outdated, and elitist ideas as rights, freedom, or ownership. Further, the meeting of communist needs must be based on sustainability. If we run out of energy, clean air, or water at some point in the future, we would then not be able to meet peoples’ needs. Therefore, plans and actions to sustain all the materials and planetary conditions that will keep us from running out of the natural resources are “necessary” – even if that means enslavement and tyranny. ‘Sustainability’ works in tandem with the ‘meeting of needs’ as a combination that is a cornerstone for a new world governance policy. 

The Build Back Better plan superficially appears to be an updated and extravagant Keynesian or New Deal-style spending program, but the endgame is not economic recovery that forever establishes federal government dominance over the states in the socio-political realm. Rather, this BBB is the connection of an enlarged federal government and authority with a depreciation or elimination of U.S. sovereignty in favor of global, communist-style governance. But as if the endgame were not sinister enough, we see this updated Keynesian expansion of expenditures is not a result of economic collapse due to a devastating Depression, as was the justification in the 1930s.

Rather, simultaneously with expanded spending, the goal of the BBB plotters is to weaken the economy and usher in economic and socio-political chaos and mayhem. The southern border hands-off policy is literally facilitating the entrance of millions of unvetted persons. By limiting or eliminating natural gas and oil production in the territorial U.S. under the guise of protecting the environment, the feds incentivize other countries to expand their production of these energy sources. That production, which still means higher energy prices here in the U.S., has an equally negative effect on the world climate as fuel production in our country. But the brooding minds behind BBB want to see inflated prices. They want to see shortages. They want to see racial unrest. They want to see upsurges in crime as new theories of law inform the release of repeat offenders and shorter sentences to destabilize society. The BBB autocrats want to see a society that increasingly identifies as LGBTQ because this radical individualism weakens the social fabric. They want to see Chinese fentanyl imported to kill our citizens who are weak-minded and susceptible to drug use. 

Thus, despite its resemblance to the New Deal, the BBB’s so-called governance (properly called betrayal) is at the front end linked to global health, green initiatives, and “interdependence” as an excuse for diminishing U.S. sovereignty. Initiation of these policies was not to combat financially depressive conditions but rather designed to undermine the freedoms and economic viability of the U.S. This might be likened to prescribing chemo to a patient who did not have cancer, and then, in order to justify the perverse treatment plan, injecting the patient with cancer cells in order to justify that plan. The goal of the sinister and aberrated “plan” would not be the recovery of the patient and return to normal living, but to place the “cured” individual into custodial care rather than independent living. That is the equivalent of a United States with diminished sovereignty in a world governance system.

More Oil Pricing Nonsense Hurting Consumers

Seriously, you go from the leading producer and exporter to begging other countries for gas in a year. Even are you smarter than a fifth grader could figure this out.

The cabal behind Biden pulling the strings is just like when Obama got elected. Undo everything Trump did (or Bush 43 back then) despite it’s effectiveness for us, the consumers. The people of the United States of America who the government is supposed to work for.

I wonder do they hate Trump or the people of the USA more? I’m feeling a lot of hate towards me and no one in the government cares about my existence except on tax day.

Biden, Reality Finally Bite Me At the Pump

I have a truck, but only fill up a couple times max a month. I’ve gotten away in the forty dollar range recently for this.

To further let you know how bad this is, I got a .30 fuel points discount, so add that back you’ll see some real damage.

If they are so worried about climate change, then why are they paying more for gas from a different country and then more carbon produced getting it here.

I’m beginning to think the current administration is against America and Americans. This is easily fixable and worked well a year and half ago.

I have let the others describe the confusion and calamity that our nations leaders have caused, but this time they hit me, and hard.

#FJB #LGB

John von Neumann, Nearly every computer built to this day, from mainframe to smartphone, is based on von Neumann’s design

More than anyone else, John von Neumann created the future. He was an unparalleled genius, one  of the greatest mathematicians of the twentieth century, and he helped invent the world as we now know it. He came up with a blueprint of the modern computer and sparked the beginnings of artificial intelligence. He worked on the atom bomb and led the team that produced the first computerized weather forecast. In the mid-1950s, he proposed the idea that the Earth was warming as a consequence of humans burning coal and oil, and warned that “extensive human intervention” could wreak havoc with the world’s climate. Colleagues who knew both von Neumann and his colleague Albert Einstein said that von Neumann had by far the sharper mind, and yet it’s astonishing, and sad, how few people have heard of him.

Just like Einstein, von Neumann was a child prodigy. Einstein taught himself algebra at twelve, but when he was just six von Neumann could multiply two eight-digit numbers in his head and converse in Ancient Greek. He devoured a forty-five-volume history of the world and was able to recite whole chapters verbatim decades later. “What are you calculating?” he once asked his mother when he noticed her staring blankly into space. By eight he was familiar with calculus, and his oldest friend, Eugene Wigner, recalls the eleven-year-old Johnny tutoring him on the finer points of set theory during Sunday walks. Wigner, who later won a share of the Nobel prize in physics, maintained that von Neumann taught him more about math than anyone else.

Johnny’s plans (and by extension, the modern world) were nearly derailed by his father, Max, a doctor of law turned investment banker. “Mathematics,” he maintained, “does not make money.” The chemical industry was in its heyday so a compromise was reached that would mark the beginning of von Neumann’s peripatetic lifestyle: the boy would bone up on chemistry at the University of Berlin and meanwhile would also pursue a doctorate in mathematics at the University of Budapest.

In the event, mathematics did make von Neumann money. Quite a lot of it. At the height of his powers in the early 1950s, when his opinions were being sought by practically everyone, he was earning an annual salary of $10,000 (close to $200,000 today) from the Institute for Advanced Study in Princeton, the same again from IBM, and he was also consulting for the US Army, Navy and Air Force.

Von Neumann was irresistibly drawn to applying his mathematical genius to more practical domains. After wrapping up his doctoral degree, von Neumann moved to Göttingen, then a mathematical Mecca. There was also another boy wonder, Werner Heisenberg, who was busily laying the groundwork of a bewildering new science of the atom called “quantum mechanics.” Von Neumann soon got involved, and even today, some of the arguments over the limits and possibilities of quantum theory are rooted in his clear-eyed analysis.

Sensing early that another world war was coming, von Neumann threw himself into military research in America. His speciality was the sophisticated mathematics of maximizing the destructive power of bombs — literally how to get the biggest bang for the army’s buck. Sent on a secret mission to England in 1943 to help the Royal Navy work out German mine-laying patterns in the Atlantic, he returned to the US when the physicist Robert Oppenheimer begged him to join America’s atom-bomb project. “We are,” he wrote, “in what can only be described as a desperate need of your help.”

Terrified by the prospect of another world war, this time with Stalin’s Soviet Union, von Neumann would help deliver America’s hydrogen bomb and smooth the path to the intercontinental ballistic missile.

As he scoured the US for computational resources to simulate bombs, he came across the ENIAC, a room-filling machine at the Moore School of Electrical Engineering at the University of Pennsylvania that would soon become the world’s first fully electronic digital computer. The ENIAC’s sole purpose was to calculate trajectories for artillery. Von Neumann, who understood the true potential of computers as early as anyone, wanted to build a more flexible machine, and described one in 1945’s First Draft of a Report on the EDVAC. Nearly every computer built to this day, from mainframe to smartphone, is based on his design. When IBM unveiled their first commercial computer, the 701, eight years later, it was a carbon copy of the one built earlier by von Neumann’s team at the IAS.

While von Neumann was criss-crossing the States for the government and military, he was also working on a 1,200-page tract on the mathematics of conflict, deception and compromise with the German economist Oskar Morgenstern. What was a hobby for von Neumann was for Morgenstern a “period of the most intensive work I’ve ever known.” Theory of Games and Economic Behavior appeared in 1944, and it soon found favor at the RAND Corporation in Santa Monica, where defense analysts charged with “thinking about the unthinkable” would help shape American nuclear policy during the Cold War. They persuaded von Neumann to join RAND as a consultant, and their new computer was named the Johnniac in his honor.

Since then, game theory has transformed vast tracts of economics, the wider social sciences and even biology, where it has been applied to understanding everything from predator-prey relationships to the evolution of altruistic behavior. Today, game theory crops up in every corner of internet commerce — but most particularly in online advertising, where ad auctions designed by game theorists net the likes of Google and Amazon billions of dollars every year.

More at this link

More On Gas Prices, I’m In Disbelief That We Put Up With This

It was under two dollars a year ago.

The release of the strategic oil reserve yesterday is good for a day and a half of consumption and won’t be available for the holiday travel. It won’t affect the price of gas at the pump.

Approximately 18 million barrels went to China and India.

Renew the leases, open the pipelines and stop the Vax mandate on the supply chain and watch the magic happen.

I of course expect none of this to happen, but if they wanted to help regular Americans….oh, and what we do affects the rest of the world so it would benefit others also.

But no, don’t get your hopes up. Expect the Carter years again.

How Biden Could Bring Down Gas Prices, If He Wanted To

I’ve stayed away from talking about Biden, like I stayed away from Trump. I’m not going to try to change anyone’s opinion of either, nor will I change mine. Politics is poison, so I’ll talk economics instead (OK, I’ll make a few sarcastic points because, that’s why).

I do see how this problem can easily be solved.

Today, the President announced that he’s opening up the strategic oil reserve to bring down the prices. This is little more than a band aid to a problem rather than a solution. That reserve was meant for a crisis, of which we are not in right now. By crisis, I mean an attack, an actual climate disaster like a hurricane or a non man made disruption in fuel production.

When taking office, he shut down production of fossil fuels via the Keystone Pipeline, Fracking and other independent (of other countries) production of oil. All was done in the name of sustainable sources and devices like electric cars. What is not said is that the generators of electricity are fossil fuel based, even for a Tesla. Also not said is we are not ready for decades to leave oil as a base for our energy and electricity needs.

Irony, hypocrisy and sarcasm, all in one.

The cynical me steps back and looks at the executive orders signed and it seems that Biden is just against anything the previous president did. Lots of presidents do that. One of them was energy independence. Recently, he asked the Saudi’s to produce more for us, although we have the ability to be the largest producer and exporter. They thumbed their noses at us.

To me, if you produce more, the price would go down. It seemed to work a couple of years ago and there is no reason not to have it work again. Stop the restrictions on fracking (which helped reduce our carbon footprint btw), get rid of the restrictions on fracking and get rid of the bureaucratic laws against our being energy independent and the price goes back down. It has nothing to do with production anywhere else, other than driving down the price worldwide.

It would be a step in the right direction of inflation reduction.

Tapping the strategic oil reserved leaves us with our pants down in the case of an actual emergency.

I’m pretty sure most who have an IQ above a grain of rice could see this and know I’m stating the obvious.

Do I expect this to happen? Not a chance. I lived through lines during the Carter years and expect the same to happen until production returns. It’s simple economics.

It’s time to put pettiness aside and do what is right for the people of the country. It’s not getting better than it was. Cutting fuel costs would be a good start.

Covid/Vaxx Round Up – Pfizer Admitting Their Vax Isn’t Necessary, The Wuhan Timeline (adverse effects, lies, coverups, obfuscations) ….I’m In Such Disbelief, They Just Speak For Themselves Now

This may be the last round up I do because the more I read, the more ridiculous things get. This is a virus that more than 99.5% survive from. Nevertheless, I gathereded this batch so that people can decide for themselves how to view their response to what is going on.

These Charts Say It All: The Depopulation Agenda Is In Full Swing As More And More Americans Are Being Killed And Injured By ‘The Vax’ Being Heavily Pushed By The Genocidal Eugenicists

This chart starts the article

Plandemic, Literally: Patents Prove COVID Fraud and Illegal Dealings

Even the Liar in Chief Jenn Psaki got caught saying plandemic.

In this interview, we continue our coverage of the COVID “plandemic” by speaking to David Martin, Ph.D., who has done a phenomenal job uncovering the paper trail behind the virus now known as SARS-CoV-2. As it turns out, this is not a novel virus at all, as patents and government grants detailing key features of the virus go back two decades.

Former President of Vatican Bank: Covid is Device for ‘Great Reset’

The perpetual goals of globalist elites – depopulation, destruction of free markets, and the erasure of borders

Hundreds of thousands of businesses around the world shut their doors in early 2020 and will never again reopen. Countless American workers have also recently left the workforce due to being presented with an ultimatum: take the experimental Covid-19 injections, or find employment elsewhere.

The burdens being placed on employers and employees alike will cause the economic collapse, not “mounting deaths” due to a virus with a 99%+ survival rate.

Schwab, along with  Bill GatesEric Schmidt, and other prominent individuals in the tech industry and political sector, meets yearly in Davos to discuss what changes must be implemented to see the Great Reset come to fruition.

Merck’s New Pill Molnupiravir May Be A Trojan Horse To Change Your DNA…..

Molnupiravir was developed for the treatment of Influenza. According to whistleblower complaint Molnupiravir has mutagenic properties and may change your DNA. Now, Molnupiravir has been repurposed for COVID-19.

In genetics, a mutagen is a physical or chemical agent that permanently changes genetic material, usually DNA, in an organism and thus increases the frequency of mutations above the natural background level.

Merck, Ivermectin & Molnupiravir – A Tale of Two Pills

It just so happens that Merck, the former manufacturer of ivermectin has been working on a “new” anti-viral pill which will, when approved, would provide an at-home remedy for mild to moderate cases of Covid-19. This new pill will ironically work in much the same way as ivermectin.

The Research Is Clear: Ivermectin Is a Safe, Effective Treatment for COVID, so Why Isn’t It Being Used?

Bear in mind that the safety profile for ivermectin is excellent and the drug is spectacularly less expensive than the vast majority of hospital interventions.

—->Me: because no one makes any money off of it anymore.

Hidden camera: Pfizer scientists admit natural immunity better than vaccines

“When somebody is naturally immune, like, they got COVID, they probably have better, like, not better, but more antibodies against the virus,” he said.

“So when you actually get the virus, you’re going to start producing antibodies against multiple pieces of the virus,” Karl continued. “So, your antibodies are probably better at that point than the vaccination.”

“When somebody is naturally immune, like, they got COVID, they probably have better, like, not better, but more antibodies against the virus,” he said.

“So when you actually get the virus, you’re going to start producing antibodies against multiple pieces of the virus,” Karl continued. “So, your antibodies are probably better at that point than the vaccination.”

More than 500,000 adverse affects reported from Covid Vaccine

The title speaks for itself….it’s getting repetitive by now

Pfizer COVID-19 Vaccine’s Effectiveness Falls Below 50 Percent After 5 Months: Study

The effectiveness of the Pfizer-BioNTech COVID-19 vaccine falls below 50 percent after five months, according to a new study published in The Lancet medical journal on Oct. 4.

The origin of COVID: Did people or nature open Pandora’s box at Wuhan?

In what follows I will sort through the available scientific facts, which hold many clues as to what happened, and provide readers with the evidence to make their own judgments. I will then try to assess the complex issue of blame, which starts with, but extends far beyond, the government of China.

The Real Nature Of Freedom, Economic and Political and the Interrelationship Between The Two

In these days of divisiveness, there are some facts based on economics that are hard to refute, even if you don’t want to admit it.  I enjoy discussion by people of high IQ and of great wisdom, something the world of Political Correctness is sadly overlooking.

Fiscal Cliff Put Into Perspective of a Household Income

Lesson #1:
U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000
Let’s now remove 8 zeros and pretend it’s a household budget using the
Same numbers:
* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts so far: $385.00
Easier to understand ??…….OK now,
Lesson #2:
Here’s another way to look at the Debt Ceiling:
Let’s say, You come home from work and find
There has been a sewer backup in your neighborhood….
And your home has sewage all the way up to your ceilings.
What do you think you should do ……
Raise the ceilings, or remove the sewage?

Keynesian Policies Keep Failing

It’s not that the Keynesians aren’t smart, nor poorly educated, nor bad economists (at least they studied it to make their economic position), rather it is that they are not students of history.  I may have to argue that they are bad economists later though as it has yet to work and is failing again.

Here are 2 articles:

Moving beyond contorted Keynesian Logic.

From Doug French whom I neither endorse nor hold up as an economist, but there are lessons here to observe.

So what kind of Keynesian world are Bernanke and the other wise ones in Washington shaping for us?

Keynesians see a depression as a lack of aggregate demand — as opposed to Austrians who know a depression is the required cleansing of the malinvestments created by the preceding boom of the government’s making. Policy makers, following the Keynesian playbook, enact policies to stimulate aggregate demand and offset the fall in private investment. On the fiscal-policy side, Keynesians advocate higher government spending. On the monetary side, they insist on lowering interest rates to zero if necessary.

The world has recent experience with attempts at resuscitating a bubble economy. The Bank of Japan cut interest rates six times between 1986 and early 1987 and all that new money caused the Japanese economy to bubble over. As Bill Bonner and Addison Wiggin write in Financial Reckoning Day Fallout,

the problem with all money is that it is as fickle and unreliable as a bad girlfriend. One minute she goes along with the flow. The next minute she turns silly and bubbly. And then, she gives you the cold shoulder.

The prolonged period of low interest rates created one of the largest domestic bubbles in the world. For a brief moment in 1990, the Japanese stock market was bigger than the US market. The Nikkei-225 reached a peak of 38,916 in December of 1989 with a price-earnings ratio of around 80 times. At the bubble’s height, the capitalized value of the Tokyo Stock Exchange stood at 42 percent of the entire world’s stock-market value and Japanese real estate accounted for half the value of all land on earth, while only representing less than 3 percent of the total area. In 1989 all of Japan’s real estate was valued at US$24 trillion which was four times the value of all real estate in the United States, despite Japan having just half the population and 60 percent of US GDP.

“The Japanese asset bubbles were identical to other asset bubbles in the sense that they were essentially inflated by credit,” writes Asian bank regulator Andrew Sheng in his book From Asian to Global Financial Crisis.

Banks lent to highly leveraged developers to buy real estate against inflated collateral values, which then fueled the bubble further. Asset prices bore no realistic relationship to their return on capital, particularly since cost of funding was exceptionally low. The minute the credit stopped, the bubble began to deflate, and the main victims were the banks themselves.

After the bubble popped in Japan, that government pursued a relentless Keynesian course of fiscal pump priming and loose fiscal policy with the result being a Japan that went from having the healthiest fiscal position of any OECD country in 1990 to annual deficits of 6 to 7 percent of GDP and a gross public debt that is now 227 percent of GDP. “The Japanese tried to cure an alcoholic with heroin,” writes Bonner. “Now, they’re addicted to it.”

Japan’s monetary policy was to aggressively lower rates to .5 percent between 1991 and 1995 and has operated a zero-interest policy virtually ever since.

Between 1992 and 1995, the Japanese government tried six stimulus plans totaling 65.5 trillion yen and they even cut tax rates in 1994. They tried cutting taxes again in 1998, but government spending was never cut. Also in 1998, another stimulus package of 16.7 trillion yen was rolled out nearly half of which was for public-works projects. Later in the same year, another stimulus package was announced, totaling 23.9 trillion yen. The very next year an ¥18 trillion stimulus was tried, and, in October of 2000, another stimulus for 11 trillion was announced. As economist Ben Powell points out, “Overall during the 1990s, Japan tried 10 fiscal stimulus packages totaling more than 100 trillion yen, and each failed to cure the recession,” with Japan’s nominal GDP growth rate below zero for most of the five years after 1997.

After five years in an economic wilderness, the Bank of Japan switched, during the spring of 2001, to a policy of quantitative easing — targeting the growth of the money supply instead of nominal interest rates — in order to engineer a rebound in demand growth.

The move by the Bank of Japan to quantitative easing and the large increase in liquidity that followed stopped the fall in land prices by 2003. The Bank of Japan held interest rates at zero until early 2007, when it boosted its discount rate back to 0.5 percent in two steps by mid year. But the BoJ quickly reverted back to its zero interest rate policy.

In August of 2008, the Japanese government unveiled an ¥11.5 trillion stimulus. The package, which included ¥1.8 trillion in new spending and nearly ¥10 trillion in government loans and credit guarantees, was in response to news that the Japanese economy in July suffered its biggest contraction in seven years and inflation had topped 2 percent for the first time in a decade.

Newswire reports said the new measures would include assistance to the agriculture sector, support for part-time workers to find better employment, and rebates on toll roads. Additional spending was also to flow to healthcare, housing, education, and environmental technology.

Just this past April, the Japanese government announced another ¥10 trillion stimulus program. This was after Japan’s economy shrank by a record 15.2 percent annual rate in the first quarter of 2009. This drop was on the heels of a 14.4 percent drop in the fourth quarter of 2008.

Last month, Reuters reported that the Bank of Japan reinforced its commitment to maintaining very low interest rates and may provide even further easing. “The bank said that it would not tolerate zero inflation or falling prices.” The bank left its policy rate at .1 percent and analysts see the rate staying low possibly until 2012.

According to Reuters, the Japanese government “is fretting over the risk of the economy flipping back into recession and is pushing the bank for action.” Economy flipping back into recession? Are they kidding? Japan’s GDP at the end of this year will be no higher than it was in 1992–17 lost years.

“After 17 years of bailouts and stimulus programs, the Japanese should be getting good at them,” write Bonner and Wiggin. “But it’s a little like a guy who’s getting good at suicide — if he’s so good at it, you’d think he’d be dead already.”

But Keynesians are wont to grade on a curve. Nobel laureate and New York Times columnist Paul Krugman, for one, points to Japan’s fiscal stimulus packages as having “probably prevented a weak economy from plunging into an actual depression.”

And finally, here is a video on Keynesian Economics.

Milton Friedman Would have been 100, Still One Of The Best Economists Ever

Economists have either followed Friedman or Keynes for Economic Theory over the last century.  Keynes is being used currently and you can judge the results for yourself.  For me, it does not seem to work, nor has history shown it to have worked  for any of the presidents who have based their administration on Keynesian theory anywhere in the world.

I quote one of the best authors of our generation on economics for this article.

From Dr. Thomas Sowell

If Milton Friedman were alive today — and there was never a time when he was more needed — he would be one hundred years old. He was born on July 31, 1912. But Professor Friedman’s death at age 94 deprived the nation of one of those rare thinkers who had both genius and common sense.

Most people would not be able to understand the complex economic analysis that won him a Nobel Prize, but people with no knowledge of economics had no trouble understanding his popular books like “Free to Choose” or the TV series of the same name.

In being able to express himself at both the highest level of his profession and also at a level that the average person could readily understand, Milton Friedman was like the economist whose theories and persona were most different from his own — John Maynard Keynes.

Like many, if not most, people who became prominent as opponents of the left, Professor Friedman began on the left. Decades later, looking back at a statement of his own from his early years, he said: “The most striking feature of this statement is how thoroughly Keynesian it is.” No one converted Milton Friedman, either in economics or in his views on social policy. His own research, analysis and experience converted him.

As a professor, he did not attempt to convert students to his political views. I made no secret of the fact that I was a Marxist when I was a student in Professor Friedman’s course, but he made no effort to change my views. He once said that anybody who was easily converted was not worth converting.

I was still a Marxist after taking Professor Friedman’s class. Working as an economist in the government converted me.

What Milton Friedman is best known for as an economist was his opposition to Keynesian economics, which had largely swept the economics profession on both sides of the Atlantic, with the notable exception of the University of Chicago, where Friedman was both trained as a student and later taught.

In the heyday of Keynesian economics, many economists believed that inflationary government policies could reduce unemployment, and early empirical data seemed to support that view. The inference was that the government could make careful trade-offs between inflation and unemployment, and thus “fine tune” the economy.

Milton Friedman challenged this view with both facts and analysis. He showed that the relationship between inflation and unemployment held only in the short run, when the inflation was unexpected. But, after everyone got used to inflation, unemployment could be just as high with high inflation as it had been with low inflation.

When both unemployment and inflation rose at the same time in the 1970s — “stagflation,” as it was called — the idea of the government “fine tuning” the economy faded away. There are still some die-hard Keynesians today who keep insisting that the government’s “stimulus” spending would have worked, if only it was bigger and lasted longer.

This is one of those heads-I-win-and-tails-you-lose arguments. Even if the government spends itself into bankruptcy and the economy still does not recover, Keynesians can always say that it would have worked if only the government had spent more.

Although Milton Friedman became someone regarded as a conservative icon, he considered himself a liberal in the original sense of the word — someone who believes in the liberty of the individual, free of government intrusions. Far from trying to conserve things as they are, he wrote a book titled “Tyranny of the Status Quo.”

Milton Friedman proposed radical changes in policies and institution ranging from the public schools to the Federal Reserve. It is liberals who want to conserve and expand the welfare state.

As a student of Professor Friedman back in 1960, I was struck by two things — his tough grading standards and the fact that he had a black secretary. This was years before affirmative action. People on the left exhibit blacks as mascots. But I never heard Milton Friedman say that he had a black secretary, though she was with him for decades. Both his grading standards and his refusal to try to be politically correct increased my respect for him.

Thomas Sowell is a senior fellow at the Hoover Institution, Stanford University, Stanford, CA 94305. His website is www.tsowell.com.

He also wrote this:

When both unemployment and inflation rose at the same time in the 1970s —”stagflation,” as it was called — the idea of the government “fine tuning” the economy faded away. There are still some die-hard Keynesians today who keep insisting that the government’s “stimulus” spending would have worked, if only it was bigger and lasted longer.

This is one of those heads-I-win-and-tails-you-lose arguments. Even if the government spends itself into bankruptcy and the economy still does not recover, Keynesians can always say that it would have worked if only the government had spent more.

Although Milton Friedman became someone regarded as a conservative icon, he considered himself a liberal in the original sense of the word — someone who believes in the liberty of the individual, free of government intrusions. Far from trying to conserve things as they are, he wrote a book titled “Tyranny of the Status Quo.”

Milton Friedman proposed radical changes in policies and institutions ranging from the public schools to the Federal Reserve. It is liberals who want to conserve and expand the welfare state.

As a student of Professor Friedman back in 1960, I was struck by two things — his tough grading standards and the fact that he had a black secretary. This was years before affirmative action. People on the left exhibit blacks as mascots. But I never heard Milton Friedman say that he had a black secretary, though she was with him for decades. Both his grading standards and his refusal to try to be politically correct increased my respect for him.