{"id":17946,"date":"2016-02-18T11:54:17","date_gmt":"2016-02-18T16:54:17","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17946"},"modified":"2016-02-18T11:54:51","modified_gmt":"2016-02-18T16:54:51","slug":"why-the-keynesian-market-wreckers-are-now-coming-for-even-your-ben-franklins","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17946","title":{"rendered":"Why The Keynesian Market Wreckers Are Now Coming For Even Your Ben Franklins"},"content":{"rendered":"
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Why The Keynesian Market Wreckers Are Now Coming For Even Your Ben Franklins<\/a><\/h3>\n

Larry Summers is a pretentious Keynesian fool, but I\u00a0refer to\u00a0him as\u00a0the Great Thinker\u2019s\u00a0Vicar on Earth for a reason. To wit,\u00a0every time the latest\u00a0experiment in Keynesian intervention fails\u2014\u2014as 84 months of ZIRP and massive\u00a0QE clearly have\u2014\u2013he can be counted on to trot out a new angle on why still another\u00a0interventionist experiment or\u00a0state sponsored financial fraud is just the ticket.<\/p>\n<\/header>\n

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Right now he is leading the charge for the greatest stroke of foolishness yet conceived. Namely, negative interest rates based on the\u00a0rubbish theory that the \u201cnatural\u201d money market rate of interest is at an extraordinarily low point.\u00a0Accordingly,\u00a0the central bank should drive the \u201cpolicy rate\u201d\u00a0to sub-zero levels in order to achieve the appropriate level of \u201caccommodation\u201d in an economy that refuses to attain \u201cescape velocity\u201d.<\/p>\n

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\"\"ENLARGE\u00a0<\/span><\/div>\n
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As can\u2019t\u00a0be pointed out often enough, however, there is no such economic ether as \u201caccommodation\u201d. It\u2019s just a\u00a0blanket cover story for what Keynesian central bankers believe they are accomplishing by pegging interest rates below market clearing levels and by\u00a0bending and mangling the yield curve to cause more investment.<\/div>\n<\/div>\n<\/div>\n

But after 86 months it is evident that all of this putative monetary \u201caccommodation\u201d has failed. Falsifying the cost of money and capital can only work if it\u00a0causes households and businesses to borrow more than they would otherwise; and to then\u00a0lay credit based\u00a0spending for consumption and investment goods on top of what can be funded out of current production and income. Another name for that is leveraging private balance sheets and thereby stealing production and income from the future.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Why The Keynesian Market Wreckers Are Now Coming For Even Your Ben Franklins Larry Summers is a pretentious Keynesian fool, but I\u00a0refer to\u00a0him as\u00a0the Great Thinker\u2019s\u00a0Vicar on Earth for a reason. To wit,\u00a0every time the latest\u00a0experiment in Keynesian intervention fails\u2014\u2014as 84 months of ZIRP and massive\u00a0QE clearly have\u2014\u2013he can be counted on to trot out […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,6],"tags":[1035,5979,951,2120,431,467,3284,534,558,1389,661,662,4927,1939],"class_list":["post-17946","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","tag-cash","tag-contracorner","tag-currency","tag-david-stockman","tag-interest-rates","tag-keynesian-economics","tag-larry-summers","tag-monetary-policy","tag-negative-interest-rates","tag-nirp","tag-qe","tag-quantitative-easing","tag-war-on-cash","tag-zirp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17946"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17946\/revisions"}],"predecessor-version":[{"id":17948,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17946\/revisions\/17948"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}