Keynesian economics debunked in one graph

John Maynard Keynes believed that when the private sector economy was struggling, it could be spurred into growth by public sector deficit spending. In other words, by incurring a temporary deficit, private sector growth could be revitalized to the point where the additional tax revenue generated would eliminate the newly created public debt.

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How Low Will the Yen Go: Depression-Era Policies?

When we asked last November whether the yen is doomed, it was before current Prime Minister Shinzo Abe was elected. We have since answered the question in the affirmative. But to understand why we believe the yen might be worthless one day, we look at Japan’s challenges from different angles. Today, we focus on Japan’s stated goal to pursue Depression-Era policies.

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Recommended Reading: Don’t they get it?

In this article, Dr Tim Morgan explores the disconnect between government policy and economic reality. He discusses the assumption in Britain that “growth will [magically] arrive” sooner or later, “despite evidence to the contrary”, and his charts demonstrate the dangerous trajectory of US Federal debt.

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Hidden Treasury Risks? Part I

While Treasuries are said to have no default risk as the Fed can always print money to pay off the debt, hidden risks might be lurking. As oxymoronic as it may sound, the biggest risk to the economy and the U.S. dollar might be, well, economic growth! Let us explain.

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Stagflation nation: Why Britain is heading for a quadruple-dip recession & a lost decade

Britain is mired in stagflation and unless we see a radical shift in economic policy the nation is heading for a quadruple-dip recession and a Japanese-style lost decade. This article explores what stagflation is, why Britain is in it, and what it will take to get us out of it.

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