RE:RE:Johnny: Shorting IVNAllen,
Interesting article from The Guardian on Keyne's currency trading. He never suggested governments should turn deficit spending into a permanent feature like we have today with overall US federal debt rising by about $1 trillion a year. By 1942, Keynes had concluded tax cuts were the most efficient way to boost consumption. I don't have the reference on hand, but I read it in a Forbes article.The Depression was a desperate time that required desperate measures. Recently, US federal debt levels have been going up over 5% GDP every year for the last 15 years, even while GDP growth remains stuck at 1 or 2%.This is a lot more dangerous than people realize. Although governments have run persistent deficits in the past, GDP growth was able to keep pace with public debt. In recent years the velocity of public debt has been up to five times greater than GDP growth. If you consider federal debt as a liability, instead of investment, the economy is contracting, not expanding. The only thing supporting job growth is $3 billion each and every day of additional federal debt for the US. If for any reason debt growth were to stop or even sharply decelerate, the economy would grind to a halt. This is happening throughout the West, not just in the US. Trouble is politicians are not looking beyond reelection. You get elected by spending money.