John Maynard Keynes is universally regarded as the most influential economist of the twentieth century. This assessment is correct.
His 1936 book, The General Theory of Employment, Interest, and Money, baptized the deficit spending programs that the Western governments had been following — without success — ever since 1930. His conclusion: more of the same. Lots more of the same.
Because the West’s intelligentsia and its politicians wanted to hear that, they adopted him as the patron saint of government spending. He therefore became untouchable. The cover-ups began. The Web has made the following more difficult to conceal.
Professors do not go out of their way to point out to their students that Keynes did not earn a degree in economics. He earned a B.A. in math. He never received a graduate degree.
They cover up the fact that he got his job in the economics department at Cambridge because of nepotism. His father, J. N. Keynes, was on the faculty. The head of the department, Alfred Marshall, put up the money to give him a lectureship. He was 27 years old. They made him a fellow in 1911, at the age of 29.
They immediately made him editor of The Economic Journal, the most prestigious academic economics journal in Great Britain. He held that position until 1944. So, if you wanted your article published in The Economic Journal, you did it Keynes’ way.
Nice work if you can get it, and if you get it, tell me how.
They all knew of his homosexuality. They covered it up. The fact did not become public knowledge until the publication of Michael Holroyd’s two-volume biography of Lytton Strachey in 1967, an obscure book that became an instant sensation when the facts on Keynes became public.
He lived a charmed life.
He was an economic crackpot. He was an anti-Semite. Only this year has the latter become public knowledge. The cover-up has lasted a long time.
ANTI-SEMITIC ECONOMIC CRACKPOTS
On the fringes of the Right wing in America there is a very special movement. It is crackpot to the core. It believes that the Jews are behind everything bad. Even worse, the Jews are making a potful of money doing it. This really annoys them.
Not all Jews, of course. Not the guy who runs the local deli, who makes the terrific corned beef sandwiches. He’s merely a circumcised dupe. It’s the other kind. The secret ones. The cartel. The Power behind the powers.
In the 1890’s, the anti-semitic crackpots in America gravitated toward the Left. The Greenback movement in the early 1880s had its share of them. The Greenback Party died in the late 1880s, and some of its members joined the Populist Party. This was a Left-wing movement. The anti-semitic elements in the Populist movement were discussed half a century ago in Richard Hofstadter’s book, Anti-Intellectualism in American Life.
Early in the twentieth century, the crackpots began spreading out. The creation of the Federal Reserve System in 1913 was a springboard for them. Not all were anti-Semites, but some of them were. The most famous example in American history was Father Coughlin in the 1930s. He was a Left-wing radio priest. He was a true crackpot in the Greenback tradition. He had a huge audience.
The heart of the Greenback movement is the economic equivalent of the perpetual motion machine. The Greenbackers believe that an economy can operate in terms of zero interest. This is the classic mark of the monetary crank.
The heart of their error is this: a belief that money is the same as capital. Money can be free and should be free. Fiat money guarantees free money when issued by the government. Therefore, the government can provide free capital.
But it doesn’t. Why not? Bankers. And we know which kind of bankers, don’t we? Yes, we do.
(For the rest of my article, click the link.)