The Man Who Destroyed the Entire Economic System

His name was John Maynard Keynes.

He was an economist who never understood how the economy works.

That was said by his long-time colleague and one of the most brilliant economists of all time, Frederick Hayek.

But he was a smart, intelligent guy; he was among the British elite. In his late 20s, he raised money from Wall Street on behalf of England to fight against Germany in World War I.

He was educated at Cambridge, so he had exclusive access to high society. He joined the British Treasury, and he was the mastermind behind the first Quantitative Easing in history.

The Bank of England printed new money to buy British War Bonds, which weren't sold in the market. Keynes called that Masterful manipulation.

Slowly, he became the most politically influential economist of all time. He developed several economic theories, and governments absolutely loved those because governments needed them in the first place.

This is how he gained his political influence.

After the Second World War, his economic ideas took over the West. All universities in the economics department teach only his thoughts. The Keynesian school of economics is the only economics you will be taught at the university.

But the economy John Maynard Keynes proposed is neither Economics nor Science; rather, it's totally absurd and utterly nonsensical.

Here are 7 reasons you will find why?

[1] Economic Stimulus

Keynes argued that capitalist economies are prone to booms and busts, known as business cycles. So, during an economic downturn, the government needs to stimulate the economy by simply printing money.

Okay, let's assume you are correct for a moment.

Now give me answers to several questions…

What is needed for an economy which is in a downturn?

Is it paper money or real jobs, goods, or services?

If you are a rational person, you must say we need jobs, real products & services.

Printing money doesn't give any of that.

Money is a claim of existing goods in the market.

If the government prints more, it's only increasing the claims.

The market needs goods, but claims are pushing consumption.

The fact is the market doesn't have the goods to consume, so prices will inflate.

In reality, Production must come before consumption.

Because what isn't present you can't simply consume that.

But Keynesian morons say, nope we can consume before production.

You need only the brain of a monkey & the logic of a donkey to dismiss that utter nonsense bogus argument.

None can prove Keynes' statement as correct even if he/she has 3 Phds

[2] Credit-Based Money

From top to bottom of Keynesian economics is Debt.

Keynes didn't understand anything except debt, which is the same as printing new money.

Why do They need consistent new debt?

Because Keynesian requires growth to keep their model going.

So, Debt forces growth, and without Growth, debt fails.

So, they have to always show a higher number.

Higher number, more number is what they require.

But you need just 5 sec & sense like a cattle to prove that wrong.

Which one will you take?

5 Dollars or 500 Japanese Yen?

If you are rational, you must choose 5 Dollars over 500 Yen.

My question is, isn't more better?

We don't need more numbers, we need more efficiency.

We need more quality, more purchasing power.

The economy doesn't need more debt, they need it.

Because they need to pay the interest on existing debt, Debt is forcing growth to happen.

Then that growth is going to service the vast amount of already existing debt.

No real development, you will find development only in imagination.

[3] The Cost of Capital

Before making any Investment, before making any Economic Calculation you must know your cost of Capital.

The fact is, interest rates in the economy are the primary input to know the Cost of Capital.

Now my question is to you where does the interest rate come from?

The interest comes from the central bank, for the USA a group of 15 people, known as FOMC.

What's wrong with this?

How can a group of 15 people decide the borrowing cost for a nation?

The socialist makes plans & controls the price / supply of steel, iron, car, machinery.

The Keynesian is one step away, they control the cost of borrowing.

Yep, both are the same thing; the Keynesian system is the same as the communist system but subtle.

Nope, a group of 15 people can't sit in a room & can set the rate; nope, the cost of borrowing will arise from the market.

What are the savers asking for their savings & what are the borrowers willing to pay for those savings?

That will arise from the market.

The market wouldn't have never set the interest rate zero for decades.

Nope that wouldn't have ever happened in the free market.

Artificially, the rate being controlled, then rich people borrowed at zero percent & bought all assets.

Then asset prices went over the roof which made it unaffordable to buy for middle & lower-class people in the economy.

Artificially set rates create boom-bust cycles; the market has no fault.

A 10-year-old boy will simply understand that.

But not sheep, goats & Cattle

[4] Capital Accumulation

Keynesian argued & undermined savings.

They emphasize we don't need savings at all.

We only consume; all will go toward consumption.

Because if we start to save by reducing consumption then the economy will slow down entering into recession.

So, Keynesian argue we don't need savings at all, even they promote consumption by borrowing.

But, that’s the dumbest argument, the brainless one.

You must need savings for a healthy economy.

But how can they think about a healthy economy when their mind is filled with intellectual sickness.

Investing by debt, Investing by printing new money drives growth.

Yep, indeed, that drives growth.

But the irony is you can't see the growth in the real economy because all their growth is in numbers.

You simply can't touch, eat. Feel the number.

When investment is driven by debt instead of savings, the economy experiences asset bubbles, bubbles everywhere.

People feel artificially wealthy.

But when the time comes to pay off debt, the bubble starts bursting which leads to Economic Crisis. That's Keynesian economic history in one sentence.

To grow an economy sustainably, people must save, save a lot.

Savings will go towards investment which will create more jobs, lead innovation & keep the economy growing.

[5] Inflation

Keynesian has a dogmatic view which is, we need an expansionary monetary system.

In simpler words, we need an economic system where the money supply will continue to increase because the growing economy needs a growing money supply.

Let's check whether it is true or not?

What did the free market choose as money for 5000 years?

It was Gold.

What's special about Gold?

The inflation of Gold is tiny; it's the 2nd hardest money, meaning extremely hard to produce an extra unit.

Now my question is if inflation is required, if inflation is a prerequisite for a growing economy then are the previous 5000 years a lie? Is the market was stupid?

Inflation isn't simply lost in purchasing power.

If that were the only case, then I wouldn't have said anything. Inflation is extremely dangerous.

Inflation is robbery; inflation robs the masses, give that to the top 5%.

Inflation is the system on which the Govt gains God-like power.

Inflation destroys the property rights of people, which is the base of human civilization.

Inflation is a machine that produces wealth inequality.

Inflation is a machine that generates Corruption.

Inflation embeds racism in it.

Inflation is a religion & Keynes is the prophet.

Inflation diminishes the quality of products & services in the society.

Inflation is a tool of mass impoverishment.

Inflation is a tool of mass enslavement.

Inflation is the greatest form of oppression; it takes away your labor by force.

The whole Keynesian economics can be summarized in one sentence: “Justifying Inflation”

I know very little about economics, but if 12 Keynesians come with 36 PHDs from IVY Leagues with them, they will not be able to justify inflation in front of me.

When I use my words, I choose with great care.

[6] Government Intervention

Ask a Keynesian how to improve or solve any economic problem?

You will get only one answer across the globe; we need government intervention.

They absolutely love the words.

Does the government improve anything?

Does the government ever make anything cheaper/better than the private sector?

The government is a factory that only produces inefficiency & unproductivity.

Take a govt employee & compare with a private sector employee, you will find the answer by yourself.

All technological development, invention & Economic growth come from the private sector not from governments.

Govt raises minimum wage to reduce poverty; if that would become possible then why don't we make everyone rich by just raising minimum wages to a million dollars?

If the Govt could bring prosperity & full employment then why Socialist system failed?

In a socialist economy 100% of economic output comes from the Government, what would you call if 35% of economic output of an economy comes from the Government..

Isn’t that economy 35% socialist?

I am talking about the current USA.

The Government can't do anything smooth.

They only can introduce friction by making new & new regulations.

Price control, capital control, wage fixation, setting growth rate, targeting inflation, setting interest rate is the same as insulting the people, it’s a dishonor to the free market.

The Free market is capitalism; every other thing is nonsense.

The Free market can allocate resources in the best possible way; we don't need the government to allocate resources in the economy.

The great depression was caused by excessive credit creation by banks in the 1920s, 2008 great financial crisis happened because the government kept interest rates artificially low & broke the housing market by making the Community Reinvestment Act.

In both cases, the government was the main culprit; it was not a failure of the free market.

It was the result of government stupid action.

[7] Physics Envy

Keynesians see humans as purely numerical forms, treating them like robots devoid of will.

How?

Let's say I have an apple and you have an orange, and you want my apple.

So, you offer me 2 oranges in exchange for an apple.

From there, Keynesians deduce that you love apples twice as much as oranges.

Later, if you find a banana and offer 2 apples for it, they deduce that you love bananas 4 times more than oranges.

But my question is, how did you quantify those?

You've missed the most important point of all.

When a person chooses an apple over an orange, it's in a separate timeframe.

Similarly, when they choose a banana over an apple, it's in another time frame.

They have different moods, needs, and desires at those particular times. So, you can't extend that and forecast that every time a person will do the same.

Even a 10-year-old boy will simply understand that.

Physics has Constant Measures...

The value of pi will always be the same until the end of the world.

The value of gravity will remain the same until the world comes to an end.

That's why you can use those constants to derive formulas.

The same goes for Chemistry; those are fields of natural science.

But the fact is, humans have a very special thing - the will.

Yes, humans have desires; they can either accept or reject.

That's why every human is different from others.

Not only that, but a person acts differently at different times, so a person themselves isn't constant.

So, you can't simply derive a model by observing some human behavior. If you do so, it will be filled with flaws and will definitely mislead you.

Human behavior, the study of humans, is a part of Social Science, not natural science.

Social science is a rationalistic science.

You can't simply quantify social science.

Keynes thought in that way, and his followers aren't an exception.

The models, statistics in economics came from Physics.

The famous physicist Richard Feynman, indeed a genius, was sainted in the USA because of his excellent teaching and proving style.

Finally, he was decorated with the Nobel prize.

When an idiot who was a socialist at heart named Paul Samuelson saw this, he also wanted a place in society like Feynman.

But Samuelson was an economist.

He was the first person who mathematized economics, which is a dishonor to humanity as a whole.

Because Samuelson technically reduced humans to numerical format, removing the soul from the person.

That’s utterly disgusting.

Finally, Samuelson won the Nobel Prize in the 70s, and his mission was accomplished.

Samuelson is a giant figure in American Economics.

None in the last 50 years became an economist without reading him. But the foundation of all of his models and methods was shaky and flawed.

Do you know who Keynes was?

John Maynard Keynes was an antisemite.

He was an arrogant person.

He was a pedophile.

He was gay.

He was an atheist.

He identified Christianity and Judaism as his enemies.

Do you want to learn from him how to live an economic way of life?

If so, Thank you.

I am not one of you; I am parting from falsehood.

The cost of living crisis, the wealth inequality crisis, the immigrant crisis, the rise in crime, the constant warfare, the economic blunders, everything came from the Keynesian economic model.

Because they are in charge, their method is at work.

To solve those problems, to make the world a better place to live, simply throw away that nonsensical system into the garbage bin.

Come towards classical Economics, learn about true economics.

Come towards freedom and prosperity.

You will be able to make more money from the market by studying classical economics than all that nonsense.

The choice is yours; I just invite you to think.