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FROM THE READER: Keynes's Approach is Not a Panacea to the Solution of the Present-Day Crisis
By Leeliang
2008-11-16 02:47:12
 

A note from Leeliang about Keynes:


Keynes's approach is not a panacea to the solution of the present-day crisis.
In short:


1. Keynes had failed to predict what would have come to town during the years prior to 1929. Rather, he had advocated aggressive investments into the then financial market, making him one of the complacent that led to the Great Depression. His later help to Roosevelt for New Deal was an after-fact and was sheer opportunistic in retrospect.


2. The mix of world economy and financial system as of now is orders of magnitude more complicate than that of the 20-30's. Keynes's theory and practice has not that much of use to the present-day financial system based upon derivatives and in the boiling sea of climate change, peak oil, resources shortage of all kind including foods, population growth, and a whole web of geo-politics. We need to go beyond Keynes, period; or else we will find our feet stepping into the abyss.


3. The ultimate solution shall not be limited to economy and finance, we need a philosophical change of mind set and a fresh look at what our future life-styles are going to be, as precursors to implementing any plausible policy.


The above are just my quick note to call to the attention of those who could have thought that Keynes might be the savor of this on-going predicament once again and would get us out of this ugly mess.

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