At about that time there was a Fabian socialist economist from England named John Maynard Keynes, one of the most important people in history, even though many are not taught about him and many haven’t even heard of him.
Keynes’s father was also a Fabian Socialist and the Fabians promoted Keynes for all his life. And he came up with a new idea for running an economy. And economics students in school are taught this Maynard economy, and that Maynard came up with this economical system to save free enterprise. And this was another outright lie.
This was just another Fabian Socialist idea. Keynes had written a letter to a friend in which he said, ‘My new system will be the mercy killing of free enterprise.’ If he bragged that his system would kill the free enterprise, why are students taught that this guy came along to save free enterprise?
Keynes was partially responsible for the creation of the Federal Reserve System in America. He was at the founding of the International Monetary Fund and after World War II, his theory is taught at every economics class in the United States. Keynes was a Fabian Socialist and always remember that a Fabian Socialist, by definition, is a Marxist communist, but instead of bringing the changes about through a revolution, changes are brought about through gradualism, through electoral processes.
Richard Nixon had said ‘In economics, I am now a Keynesian.’ This is another way of saying, ‘In economy, I am now a socialist or I am now a Marxist Communist.’
What was John Maynard Keynes theory? If we had to simplify it, it means that if business is bad, then the government in its budget should run a deficit. In other words, it should spend more money than it takes in, in taxes. Then, that deficit, would stimulate the economy and will get it going again. Then in good years, when the business is good, and the government is running a surplus, then it should cut government spending. In this way, it stimulates the economy in bad times and it puts the brakes on in good times. Doesn’t it sound reasonable?
Of course, if this worked, the economy would be so fantastic that we would all be billionaires. Even if this theory was sound, as a theory, in reality it is not, for the simple reason that politicians like to spend money and they do not like to tax, because spending money makes voters happy and taxing makes voters unhappy. So this theory of spending money in bad times and you cut spending in good times, has turned out to be spending money all the time. This causes inflation.
What is inflation? This will be discussed in the next piece.
