Re: Central Banks and Deflation

[John Vertegaal <vertegaa@xxxxxxxxx>]

Henry C.K. Liu wrote:

>Central banks must change their theology of protector of the value of
>money and start promoting full employment and rising wages worldwide and
>alter an economic system that rewards corporate policies of layoffs and
>cost cutting, to one that rewards job creation and expansion.

Henry,
     Those words are as true and sincere as any articulated before, and
I suspect that few if any on this forum would disagree with you.
Yet they have about a snowball's chance in hell of ever being accepted
by the powers that be, unless they are backed up by a rigorous and
logical theory that underpins them; and their veracity is undeniable,
however disdained by the same crowd.
I'm afraid that wishy-washy pk theories hopelessly riddled with internal
contradictions, (which the mainstream, in spite of their own irrelevance,
seems to have had no difficulties with to detect in the past) are not
going to cut it.
  More than just words, preached to the choir, are needed to affect
change in a nonviolent way; as none of us can be looking forward to a
calamitous collapse of the status quo.

John V