posted on Sep, 2 2009 @ 05:28 AM
I am very very suprised it has not slipped yet as such, thinking strongly it would be spring this year.
Keynes has been ressucected, however it was shown in the 70's and 80,s his unique approach did not work in the modern world of the markets and
only really had a place in the very differant world of the 30's and 40's 50's. (not saying the opposite as touted to keynes then and the rampant
march of capitalism under Mein Thatcher and Regan et al proved this, or was the alternative though!)
I heard last night and checked Britain is using abbout 90% of its Quantitatvive Easing (or monopoly money, devaluing the currencing Keynes style)
to purchase its own Gilts and Bonds....
This was never never done in the original post depression Keynesian bailout, instead the printed money was used to fund public works etc, this
amount of self purchase is an experiment in the mildest terms and is as we speak devaluaing the entire GB Plc every second, and further endebting it
for probably a hundred years or more, unless of Bankruptcy is the aim.
I still see people who seem to have lost all of their rational approach to the realities of what and is going on now, with the low interest rates
making those able to get credit thinking and saying "It is cheap" " or it only costs (x amount) a month to borrow more), the same motivating factor
that brought on the original sub prme situation, and it baffles me. Though to be fair I understand it as if a Nuclear Phycisist started trying to
explain to me the very deep levels of Star Formation I would be lost very quickly.
With experience in the field of economics both Macro and Micro it seems so plain to me and for a long time many many on ATS to have seen this, and
really is only a situation of Timing rather than when and if.
The real fear for me, is not the terrible effects of housing, education health etc for the average joe in the west, as bad as that is, but what this
as historically has always led to will unfold into. World War is a real possibility in a resource grab, My God look at 9/11 Iraq Afghanistan etc hen
everything was prospeous etc...
The true worldwide implications of this trigger event are a very real, apparent and looming danger.
Hopefully I am wrong, Keynes hiumself stated somewhere though I forget when or where that you cannot use historical data and such like to predict or
react to current financial situations, which I disagree with, you can use them for a "Flavor" or the upcoming events and trends if only from a
Sociological and political point of view. Considering he said this, and all of the world western leaders are clutching at his solutions for a previous
unrelated depression leaves a sign of the panic, or lack of unique and new ideas of how to proceed in this situation in the echelons of world
Hopefully though Keynes was right, and my fears of the coflicts to ensue in the years following the last part and end, of the rollercoaster ride of
the Free Market Show are in fact, not to be worried about as even though every such precedent in history has previously, created global or maJor
conflicts beyond what any in our generations can even imagine, this according to the Giant of the 20thC Keynes has no basis of playing out in the real
world, if his economic views can be extrapolted to geo political situations.