Japan Isn’t The Only Country Facing Disaster…An Economic “Tsunami” Looms Before Us…


The entire article is well worth reading, so I will keep comments to a minimum.

We have taken the easy road for decades now and face hard economic choices. The idea that we can inflate our way out of this mess caused by various government agencies was risky to begin with and now appears positively dangerous.

One minor quibble: The author attacks John Maynard Keynes and “Keynesianism.” I think many if not most such attacks are somewhat unfair. Keynes did advocate deficit spending at specific points during a downturn. However, he strongly urged governments to run surpluses during good times and use the money to offset the bad times. It is not his fault that faux Keynesians decided that every day was a good day for deficit spending and spent but did not save surplus monies. Keynes understood economics well, he didn’t understand the way his views would be perverted. His economic theories can, and should, be criticized. They can justly be criticized for a “statist” approach to economics and a “big government” answer to economic questions.  It is important, however, to recognize that his name has been attached to a monster he probably would disavow.

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