Friday, 8 July 2016

The Failure of Keynesian Economics

Whenever the economy tanks, people in Washington argue that the government should inject money into the economy to stimulate growth. If you think government is enormous now, Obama is agitating for even greater stimulus spending for trillions more in entitlements and make-work projects. After the “Big Bang stimulus” totaling $4.7 trillion, unemployment remains at 9.1% and the economy has grown an anemic 1.3% (summer 2011 data). But the stimulus hasn’t failed, they say, the government just needs to spend a lot more and keep doing it until it works—the beatings will continue until morale improves.
What Is It and Where Did It Come From?
The idea of big government spending as national savior got started in the 1930s when the country was in the throws of the Great Depression. English economist John Maynard Keynes argued that the government could boost the economy if it borrowed money then spent it. According to this theory, now known as Keynesian Economics, money would find its way into people’s wallets and then they would spend the money. This was supposed to “prime the pump” as money began circulating through the economy. One dollar spent is another dollar earned by someone else. (This is called the multiplier effect).

John Maynard Keynes,was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. He built on and greatly refined earlier work on the causes of business cycles, and is widely considered to be one of the most influential economists of the 20th century and the founder of modern macroeconomics. His ideas are the basis for the school of thought known as Keynesian economics and its various offshoots.

A chart for John Maynard Keynes is provided by Astro-Databank with an AA rating [1]. His radix Sun and Moon are conjunct Rigel, beta Orion, and this is part of sidereal Taurus, which is about commerce and business affairs [2]. Also here are dim stars in the right leg and foot of Perseus, the Rescuer. Opposite the luminaries is Sabik, eta Ophiuchi which was part of China’s Celestial Market so that financial concerns are prominent here [3]. To this if we add the asteroids, TNPs and planets a clearer picture will emerge. The luminaries form the apex of a T-square with Uranus opposite TNP Admetus and asteroid Industria as the base. Admetus is about “blockages” or “stagnation” while Industria is literally concerning industries. With the stars influencing Keynes’ luminaries we begin to see why he was an economist and with Uranus opposite Admetus-Industria, why he was the author of radical ideas that became the standard method employed by governments to break industrial recessions.

It was in the midst of the Great Depression, that Keynes published his "The General Theory of Employment," 1936. At that time a Saturn-Neptune opposition formed a T-square to his luminaries so that his theory that governments should open the coffers and pour money generously and  perhaps even indiscriminately, (Neptune)  into a depressed and suffering (Saturn) economy was borne out by the symbolism potentially contained in the Saturn-Neptune combination.

Keynes's influence waned in the 1970s, partly as a result of the severe stagflation that stalled the Anglo-American economies throughout that decade, and partly because of criticism of "naive Keynesian" theory by Milton Friedman, who had predicted that condition. He and other economists had disputed the ability of government to regulate the business cycle favorably with fiscal policy. In astrological terms around the early 70s, not only were Saturn and Neptune once again opposite each other in the heavens but by mid 70s took turns in  falling on (Saturn)  and opposite (Neptune) his luminaries triggering his radix T-square into manifestation. But this time proving the failure of his theories.

The Federal Reserve's response to the global financial crisis of 2007–08  is seen as a resurgence in Keynesian thought. Keynesian theory would be the magic spell for flagging economies everywhere if it didn’t have this one glaring logical fallacy. It overlooks the fact that the government can’t inject money into the economy without first taking it out. The theory only looks at half of the equation. As the government puts money in the right hand, it borrows money from the left hand. Government spending clearly benefits those people who receive the money, but there is no net increase in productivity and no increase in the national income (GDP).

Between 2008 to 2016, Keynes’ solar arc progressed MC  [12 to 19 Virgo] has been triggering his T-square and is currently just past a conjunction to his radix Uranus [19vi]. The current Saturn-Neptune square once again aspect his radix luminaries. Moreover, the September 2015 solar eclipse [20vi] fell on Keynes’ Uranus and the US Sibly Neptune both of which are conjunct the star  Denbola in the hind of the Lion. About this area Nick Fiorenza writes:

This area of late Leo is of foul breezes and smoke screens. It is also of those behind the scenes, of political-religious figureheads manipulating the affairs of the world for personal motive while offering salvation from the human struggle.  It is also of global-level grand spectacle, often time of a diversionary nature created by world powers with hidden agenda .

It is now increasingly clear that the Federal Reserve has used its Quantitative Easing  (QE) Program to benefit the top 1% through permitting the indiscriminate use of zero interest money for speculation on Wall Street. Whether Keynes (the Rescuer: natal Sun conjunct stars of Perseus) was himself innocent or complicit in the manipulation and use of his theories for not so noble ends we will never know.

[3] Secrets of the Ancient Skies; Diana Rosenberg (v.2,p.357)

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