Why money printing is failing.

Lord Keynes sought a way to flatten out the business cycle. The crippling recessions that hit Gr Britain in the early 1900s and later after WWI were gut wrenching for the working class. Still, the universal failure of Keynesian economics in our days gives us pause. We must examine the concepts lest our economies are permanently damaged.

Keynes believed that during a deflationary Depression, when the economy contracted severely and businesses went bankrupt, the govt could engage in deficit spending (building the infrastructure, for example) to reduce the negative effect of the economic slowdown. The deficit would then be PAID BACK DURING RECOVERY.

So, where did the application of Keyns' ideas go off the rail?

First, Keynes' theory was designed to work in a Capitalist economy.It would not work in a soft Socialism environment such as the EU. It would also fail in the current environment in the US where a deceptive elite is trying to establish Socialism.

Second, Keynes' theory requires PAYING BACK the deficit created by the govt to dampen the Recession or Depression. In both the EU and the US, the deficit just grows and is never paid down.

Third, there is a particularly inane bunch in the US now that negates the stimulatory effect of deficit spending by "sequestering." In this scheme, the Central Bank (the FED) digitizes a bunch of money to recapitalize failed economic institutions (CITI, GM, etc), gives another gob of money to the banks and then has the banks "sequester" this money as excess reserve, the FED paying them interest on this deposit. The money printed is not stimulatory(except for stocks), the economy stumbles and the deficit grows. The ECB is trying to copy this failed economic ploy by injecting money to buy sovereign bonds and then make the banks hold this money for interest paid by the ECB.

Let me state this clearly. I am not a keynesian, nor are the FED's shenanigans Keynesian economics. The Obama regime is trying to downsize the US economy so people learn to live on government payments. Continued crisis forces people to accept Socialism. Roosevelt survived in spite of the horrible economy created by the Republican Progressive Hoover and enlarged by Roosevelt.