Day: December 15, 2011

Thursday, 15 December 2011

07:56 – Over the last few years, I’ve mentioned several times that I thought China was in deep, deep trouble. People scoffed, but it’s becoming more and more obvious that I was right all along.

It’s not that I have a magic crystal ball. It’s that I understand something that appears to escape most politicians and journalists, including Ambrose Evans-Pritchard. The entire concept of Keynesian economics is fundamentally broken. Governments that make economic and financial decisions based on Keynes’ mistaken principles, which is to say nearly all governments, are doomed to suffer the consequences. Unfortunately, that also means the rest of us are also doomed to suffer those consequences. If only they’d listened to Hayek instead. We wouldn’t have $15 trillion in debt and there’d be no eurozone crisis. In fact, there’d be no eurozone.

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