John Maynard Keynes
From 7 Men Who Rule the World From the Grave
The sixth man is John Maynard Keynes, an economist. He wrote an analysis of world economy after World War II, and he immediately gained great fame. He had an economic point of view that was quite amazing. After the Hoover administration and the Great Depression, we began to wonder about our economic situation. Franklin Roosevelt heard of this young English economist, and consulted with him. Keynes said, “Look, it is the responsibility of government to have full employment. It is not the responsibility of government to have a balanced budget at the expense of the unemployed. Why should the government so penalize the unemployed? The government prints money. In fact, its duty is to go into debt in order to produce prosperity.” He came up with concepts such as “dynamic debt.” Government debt produces prosperity. You may not think that is too devastating an idea, but the essence of Keynes' idea was introduced into the minds of government leaders. He originated the expression, ”We only owe it to ourselves.”
Subsequently, beginning with the Roosevelt administration, we begin to spend money like drunken sailors on a weekend in Honolulu, and we have never recovered. As a consequence of Keynes' ideas, the government of the United States is now trillions of dollars in the red. The effect is inflation.
Compare the cost of products today to ten or twenty years ago. Think of the possibility of ten dollars for a loaf of bread, and twelve dollars for a quart of milk. Things could get so far out of hand that it would be impossible to save money.
Many people in United States aren't worried about inflation like they should be. Remember the Weimar Republic, before Nazi Germany came to power? You had to take a wheelbarrow full of money down to the bakery shop to get a loaf of bread—the next day two wheelbarrows full, and finally things became impossible. The people were disillusioned and heartsick. Children were starving. They said, “We need a human savior. We need a ruler that can bring order out of this chaos.” That human ruler was furnished—his name was Adolf Hitler. He cost the world one and one-half trillion dollars and millions of lives. Worldwide inflation today is excused because of Keynesian economics, the worst form of economic insanity ever to have been invented by the mind of man. The world today is going to experience a similar kind of devastating inflation.
You may have read the book How You Can Profit from the Coming Devaluation by Harold Brown. He says the best investments are: gold stocks, Swiss francs, silver coins, and a couple of other things. But you must also have a little house out in the country where you can live autonomously for at least 90 days, because when the revolution comes, there will be revolution in our streets. Hundreds of thousands will die in pools of their own blood. Inflation will incite the uncontrollable indignation of people already inflamed against the establishment and, as a result, Western civilization could well cry for another human savior. The Bible says that human savior will be Antichrist.
Keynesian economics is responsible for all the economic problems we face today. We may say to ourselves, “I am prosperous. I've got money in the bank. I'm living well.” But we are now living on the unearned incomes of our great-grandchildren. They will pay the bill for the way we are living today. No one is living off his own money. We are living on the staggering debt that our government built up. The unwritten law of the universe is that sooner or later, every penny must be paid.
This book is an early version of what 10 years later became the full-length book, Seven Men Who Rule the World from the Grave, published by Moody Press.
7 Men Who Rule the World From the Grave