Re: The Gathering Storm

["John Gelles" <johng@xxxxxxxxxx>]

It is True America has not Yet

Applied Keynesian Defenses

to Prevent the Storm that Wait-

ing for Profits Invites -- BUT

 

 

James Cumes offers fear that the 1930's

will happen all over again.

 

He offers promise that ordinary people,

unelected and unorganized, can introduce

unspecified reforms by using a process of

self-organization to rival the political power

of nations and multinational treaty organi-

zations.

 

Cumes assumes that nations who have

not yet applied Keynesian defenses, such

as those listed herein, will not be applied

if needed again:

 

     (a) cost-based contracting -- to win the

war on terror and rebuild societies devasta-

ted by years of war and tryranny,

     (b) controlled low interest environments,

     (c) similar contracting to accomplish the

environmental goals that cannot be financed

by loans or revenues ultimately constrained

by limited corporate profits and related taxes,

     (d) wartime savings on a scale we knew in

the 1940's - (a better decade than the 30's to

think of today) -- to help prevent inflation --

as contract spending replaces profits as the

starter motor for economic growth (but this

time inflation-protected savings are devoutly

to be hoped for), and

     (e) all the related defenses against infla-

tion that were applied in the 1940's, (ration-

ing, price control, etc., as contract spending

was then applied to prevent the storm of

world fascism from engulfing civilization),

 

BUT these defenses will be applied if and

when Cumes' forecasts for profit starved

economies come closer to real events in

the current period of war on global terror.

 

Meanwhile, economists, as familiar with

Keynesian remedies as others, counsel

a slower pace of change from commercial

credit and profits to programmed govern-

ment spending to fuel our journey through

stormy waters ahead.  

 

John Gelles 

 

----- In reply to Original Message -----

From: James Cumes

To: pkt@xxxxxxxxxxxxxxxx

Sent: Thursday, October 10, 2002 8:07 PM

Subject: The Gathering Storm

 

The Gathering Storm
 [See original message to PKT ]