The French government is targeting a 0% budget deficit, which is insane https://t.co/v1pXhGsfRh
— Matthew C. Klein (@M_C_Klein) May 7, 2018
Balanced budgets are not insane. Expecting socialism, Keynesianism, or MMT to work … That’s Insane.
Of course, France has no chance of balancing its budget.
Mike “Mish” Shedlock.
‘balanced budgets are insane’ is classic Newspeak. War is peace, freedom is slavery, ignorance is strength. Keynes is so 1984.
Excellent
Living within your means? Outrageous!
So long as there is a chance of fiscal integration with Germany, Holland etc it will continue a very long while for the French. The French push for integration is specifically for this reason & the ECB will do all it can too. The solvent will be expected to cover the rest in the name of “solidarity”.
The trouble with MMT and Keynesianism is that it fails to take into account the collapse in the velocity of money. You can stimulate and print all you like but if money velocity has collapse then it makes bugger all difference and just adds to government debts eg. Japan.
How long their delusions will will remain unchallenged
is anyone’s guess – but it won’t be forever.
Governments and their Central Banking enablers are currently operating a fiscal and monetary fantasy land.
The more history you read, the more you realize how history just repeats itself.
Being out of this ‘market’ while waiting for the next crash, I’ve taken to studying The Roman Empire. The similarities are amazing…and ominous. Coin clipping and/or metal debasement were the preferred ways of running budget deficits, or stealing from the treasury, in those pre-Keynesian times. My personal favorite episode, and I believe most apropos of our time, was late 3rd century a.d., during Aurelian’s reign. From 270 to 275, this amazing road warrior led legions in defeating numerous mutinies and invading enemies of Rome. While he was thus occupied, the Roman one-percenters of the time began debasing the denari by lowing it’s silver content. Inflation ran wild, (limited goods being chased by unlimited currency), impoverishing farmers in the countryside. It became such an entrenched practice, and vehemently defended by many Romans become dependent on the ‘take,’ that Aurelian had to engage an army they raised with his own legion to defeat the movement. Having the backing of most of the country, he promptly tried and executed the perps, thereby instantly taking the fun and profit out of late third century Roman budget deficits. We’re unlikely to see such a man as Aurelian in our time.