Re: Central Banks and Deflation

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

"The power that be" is running scared.  Not because they have suddenly
conceded with falsity of theories that have lead them to this sad state
of affair, but because the sad state of affair is no longer deniable.
No one I know is any more arguing that unemployment is desirable, not
even George W. Bush. And the supplyside argument has been steadily
losing both steam and converts.

There is much going on in the policy world around the world beneath the
surface.  Pk theory may seem wishy-washy to some in control of
academies, but it is precisely its wishiness that will wash. The time
fro experiment is fast approaching and the vigorous logic will come
later from data arising from the new approaches.  No economic theory can
solve all problems, but PK can and will solve the unemployment problem,
which is a lot more than monetarists were able to do for more than a
decade.  Believe me, much is happening within the seats of power.  The
establishment changes policy advisors the way mothers change diapers of
their babies, when the smell becomes noticeable.

Truth is not the issue.  Applicability is.

Henry C.K. Liu

John Vertegaal wrote:
> 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