Hayek Vs Keynes

Or

There is a reason that I put Hayek First.

Part 1


Part 2


Keynes plan for boosting "Aggregate Demand" revolves around the idea of boosting the GDP of the nation. (By Increasing Government spending)

GDP stands for Gross Domestic Product.

"Gross domestic product (GDP) refers to the market value of all final goods and services produced within a country in a given period."
-Wiki

This means, that the GDP of a nation, is the dollar value of all products sold, and services provided for money, in a given time frame (typically a year)

[atsimg]http://files.abovetopsecret.com/images/member/667bd25e1808.jpg[/atsimg]

Yes. that is a One Hundred Trillion Zimbabwe Dollar Note.

At the height of their economic collapse, Zimbabwe had the Highest GDP Growth in the history of the human species.

en.wikipedia.org...

Because every loaf of bread sold, was worth Hundreds of Billions of Zimbabwe Dollars.

Their GDP was measured in the Hundreds

of Thousands

of Millions

of Billions of dollars.


And they had NO FOOD.

John Maynard Keynes would have been proud.... and he also would have starved.


The Keynesian Economic Principles of the Federal Reserve Banking system is a Pyramid Scheme.


The illusion of the Prosperity of the American Economy (Caused by inflationary GDP growth) causes International investors to invest more.

The previous investors are payed back with the new investments.

And since the Principle and Interest is payed back in DEVALUED CURRENCY, the investors, while SEEING bigger numbers returned to them, have actually gathered a LOWER amount of value for their investment.

The American Federal Reserve System was the *KEYSTONE* of the NWO's plan to bankrupt the entire WORLD.

By clandestinely taking the Value of the world, delivering it to the FRB, and giving devalued capital back to the investors.

Sad that the only way we can reach out to the people of this generation regarding anything that is important is by rap videos...

But hey congrats to producer John Papola and economist Russ Roberts for putting this together to educate us about the theory of interest and production with the theory of money.

Quoting hyper inflation as an example of Keynesian economic theory is pure total absolute nonsense. Forum rules prevent me from using the word that should be applied!

I suspect you are trying to persuade people who don't know what Keynesian economics is that it should not be followed. Let's try 80's monetarism shall we

reply to post by malcr

Quoting hyper inflation as an example of Keynesian economic theory is pure total absolute nonsense.

So, you are saying that a government printing more money to introduce into a failing economy to boost spending is not an example of inflation?

Perhaps you should research the words that you are using, before you attempt to use them as if you have the slightest clue of what you are talking about.

Thank you for your cooperation.

P.S. "Mugabe's government was printing money to finance troops in the Democratic Republic of the Congo. In 2000 Mugabe authorized Zimbabwean troops to fight in the Second Congo War. The involvement in the Congolese war cost millions of dollars a month. One of the main costs of this war involvement was paying higher salaries to army and government officials. This required the printing of currency."
en.wikipedia.org...

reply to post by malcr


While hyper inflation is not specific to Keynesian Economics, and the situation in Zimbabwe has absolutely nothing to do with any Western governments fiscal policies..

It is however true that Keynesian Economics centers Inflation and Deflation as controlling methods of fiscal policy, that through the leverage of inflation or deflation on the economy as a whole, specifically through interest rates, the economy can be pushed into productivity where there would otherwise be stagnation. It's also a method implemented by Keynesians to fund government expenditures through artificial taxation, which the people never even know they pay. Right now our Federal Reserve is balance Inflation and Deflation as a method to control the rate of exchange for domestic corporations, as well as lowering the financial reliability of governments by altering the real value of issued debts.

Under our Keynesian policies we have to have a bubble of some form or another.. they tried the "Green Bubble" but failed to watch Spain 10 years ago as they fell on their face trying to do the same thing. They tried jump starting construction and that failed too. I believe the Keynesians last hope is a massive health care bubble. For the banks we have the Education Bubble. Every increased tuition is a few more dollars given to the banks for loans. At least we can have fun with the game trying to guess what moronic bubble they will think of next.