More calls for Keynesian policies

Thursday, May 27, 2010
Creating fears about declining M3 in order to encourage another round of monetary expansion and government spending? Take a look at . Take a look at these paragraphs written by Ambrose Evans-Pritchard: "It’s frightening," said Professor Tim Congdon from International Monetary Research. "The plunge in M3 has no precedent since the Great Depression. The dominant reason for this is that regulators across the world are pressing banks to raise capital asset ratios and to shrink their risk assets. This is why the US is not recovering properly," he said. The US authorities have an entirely different explanation for the failure of stimulus measures to gain full traction. They are opting instead for yet further doses of Keynesian spending, despite warnings from the IMF that the gross public debt of the US will reach 97pc of GDP next year and 110pc by 2015. I witnessed how the manipulation of money and credit became an essential tool for the destruction of rule of law in my native country (Argentina). Hope to help in some way to prevent the same happening in the US. Sad that those who favor the gold-standard, free-banking, or strict rules on the Fed are regarded as crazy, while trusting paper money and the wisdom of bureaucrats is regarded as enlightened. Tons of work ahead