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Our economic system (Keynesianism) is totally broken and invalid for solving our global economic problems going forward…[because it] is a one-way street where debt grows and grows to unsustainable levels. The end game is default and bankruptcy.
The comments above and below are excerpts from an article by Donald Swenson (KingdomEcon.wordpress.com) which has been edited ([ ]) and abridged (…) to provide a fast & easy read.
Keynesianism started with the administration of Franklin D. Roosevelt and it became entrenched with the 1944-46 Bretton Woods Agreement – and later the Petro-dollar gimmickry.
The global nature of Keynesianism arrived when President Nixon closed the gold window in 1971-73. Our dollar became a mere ‘number’ and ‘name’ with no tie to anything physical. Mental abstractions became our global currencies. The gold exchange standard was abandoned by Nixon on August 15, 1971 and this set in motion the final death throes for this model of economics. Nixon recognized that his flawed decision allowed Keynesianism to infest the entire global monetary system. His response to our markets was “we are all Keynesians now”.
The end game of Keynesianism is now being played out on the planet with our currencies now being mere ‘imaginary’ cyber numbers and names. Our central banks have now assumed control of the entire global monetary system and their computer trading activities are all that holds this house of cards together. Central banks now trade our markets with their HFT computers and sourced algorithms to manipulate and stabilize the index markets so collapse does not happen immediately.
The end game, however, is obvious to me. Collapse via excessive debt is built into the model of Keynesianism and anyone with some discernment can recognize that this model is in its final ‘death throes’.
My evidence is revealed clearly when I witness the numbers at: http://www.usdebtclock.org. The debt and deficits are clearly revealed and anyone with some sense of realism can discern that this is unsustainable and a ‘house of cards’ about to crumble. The game of using debt as money/credit and expecting that this model is sustainable long-term is pure nonsense.
Conclusion
The end game is here and the final collapse of our Keynesian debt system is right in front of our nose. The breaking point for this model could arrive at any moment. My sense is that it will start in earnest this year (2017). The election of Donald Trump will also speed-up this end game. The Trump Doctrine will further expose the flaws within this Keynesian model and traders will soon lose confidence in the elites who are attempting to deceive the markets with their cyber gimmicks and manipulations. The numbers at: http://www.usdebtclock.org reveal the obvious unsustainability of this model going forward. Get ready for the final end game of Keynesianism starting now and ending completely in a few years.
Our system is totally broken and there is no solution for patching up the…[current] system. We now need to start a discussion on a new system for our global economic markets. Take the time to do your own research and study on the history of Keynesianism and the nature of this model of destruction. Even John Maynard Keynes, the originator of the model, recognized that “in the long run we are all dead” (this revealed his recognition that the model was a one-way street with an eventual END). Prepare now for a desperate attempt by our elites to save the system for a few more months.
Watch the index markets in China, Japan, Europe, and the USA for indicators of when this ‘house of cards’ starts coming down. Watch the scramble for something real (like gold/silver) as the coming global DEFLATION hits our markets. Real estate could be the key indicator which sets this deflation/collapse/bankruptcy in motion. China, Europe, Canada, and the USA, are all showing that real estate has peaked. All our markets are in a bubble (to various degrees) so any economic sector could set off the coming dominoes.
Watch and prepare!
I’m waiting. I’m 62 and I’m prepared, hope I live long enough.