Keynesianism's Last Stand

This is the Keynesian version of what used to be ridiculed by liberals as trickle-down economics. It is hailed today as the solution to the credit crisis. The $700 billion bailout of the banks in the United States and the weekend bailout of European banks by European governments constitute the largest Keynesian stimulus package in history. But it was a stimulus of a unique kind: to bail out banks.

The media cheered. Wall Street cheered. Bankers who were managing solvent banks cheered.

The public did not cheer in the United States and did not have time to register any opinion in Europe. The public will pay for all of this, either through taxes to pay off buyers of government bonds or through the inflation tax.

Gary North explains what they are doing (to you).