Economy Going Back into Recession

Here is a outstanding blog by John P Hussman for those who would like a more detailed explanation of the coming recession and how to predict one using accurate, textbook analysis.

Keynesian economic policies are so predictable for a Austrian economist. Spend a lot of money, print a lot of money, enjoy some fake economic growth for a year or two, and then the money runs out. Not much different than some low life getting laid off and running up his credit cards. That is pretty much the economic policy of Keynesians like new Obama Counsel of Economics Advisers Alan Krueger from Princeton.

Alan B. Krueger, Princeton elitist Keynesian. Predictable shrill for the elites and government

At least Alan Krueger did his homework. He knows that with a personal tax, no matter what the tax rate is, collections will never exceed much more than 20% of the GDP. To get around this and fleece the peasants more to benefit his elites at Harvard, Princeton, Wall Street, and Washington he has proposed a Value Added Tax (VAT). This “5%” tax would soon become 30% or even 50% and tax collections would follow the path of Europe, killing economic growth. Also very predicable and guaranteeing that the elites stay the elites for generations, which of course is the game plan.

Why do the elites support economic policies that intentionally hurt the rest of America? Selfish bastards, ethnocentric assholes, and the usual reasons one group of people place their needs above the rest. There is no justification for economic policies that intentionally enslave and create unemployment other than the evilness of mankind. People like Alan Krueger should be placed in the evil bastard category.

Below is the M2 money velocity. As you can see when the “Great Recession” hit in 2007 the velocity went down. The Federal Reserve printed a lot of money, the money was spent, and velocity went up during the Obama “growth” years. Now the banks are full of “liquidity” and the money is spent, or sitting idle, and the velocity is going back down. Similar to the low life maxing out his credit cards.

The irresponsibility of our politicians for the last 76 years, starting with Social Security, will cause this generation to relive the Great Depression, unless we as a nation decide to go bankrupt and reorganize.

The Federal Reserve can print more money, and we can have inflation along side our unemployment, but they realize that being leveraged 56-1 puts the Federal Reserve in unforeseen crisis mode. Of course they could print themselves out of any financial hole they dig, but the political fall out would be cacophonous.

Keynesian economic policies are so predicable