Niall Ferguson Explains Why Keynesian Policies Are Dooming The World Economy To Round After Round Of Asset Bubbles
by Tyler Durden
If there is one thing that everyone should watch to understand just why every policy attempt to fix the ongoing depression is doomed, it is the following short clip from Niall Ferguson in which he deconstructs the primary fatal flaw of Keynesianism. Ferguson explains why those who push for Keynesian policies in a globalized world are doing nothing to stimulate the economy, but merely inflate ever more bubbles. Quote Ferguson: “I wonder if it’s worth revisiting the now familiar debate about whether or not Keynes can save us. Because I have some doubts about this. Deep doubts.” Zero Hedge has no doubts about this – we are confident that the confines of a theoretical Keynesian system have been the recipe for the disaster unfolding now before our eyes (which is not to say that Austrian economics is necessarily better, although intuitively they certainly make a far more compelling case, and would certainly not have led to the current pre-apocalyptic economic situation, which only the most addicted to Kool Aid pig lipstickers refuse to acknowledge). However, that is not news – we have always made our position on the false voodoo religion of economics well known. We are, however, happy that more and more of the “mainstream fold” are finally starting to question the key flawed premise of this fundamentalist doctrine.