Tuesday, June 8, 2010

Obstruction of Justice

You were under the impression
That when you were walking forward
You'd end up further onward
But things ain't quite that simple
--The Who

Tony Crescenzi suggests that the world is reaching a 'Keynesian endpoint' w.r.t. government spending. A novel label for the timeless concept that you can't borrow and spend your way out of debt and spending problems.

Imbalances have been building as politicians enacted Keynes' interventionist policies over the past century. Government balance sheets are now approaching 'exhaustion' (per Tony's term) and are struggling to squeeze out more deficit spending.

As governments run out of interventionary ammo, latent market energy turns kinetic to rebalance natural economic systems.

Natural law cannot be permanently obstructed.

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