Keynes Economic Theory

If your idea of You Tube rabbit holes involves animated histories of economists, then this should scratch that itch. An animated history of John Maynard Keynes from Alain de Botton.

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The School of Life, POLITICAL THEORY – John Maynard Keynes

Just FYI, Keynes never said what he is famously credited as saying. At least, as far as we can tell he never said it.

I have been rolling a blog post around in my head discussing just how clueless most people are when it comes to the subject of money. I spent my entire life collecting coins and the last decade championing hard currency, only to be taken strange by my fellow hard-currency promoters when they all decided they wanted eSilver and eGold (don’t get me started on bitcoin) because it was easier to deal with than carrying hard money around with you.

I had a mini-history of the metallic monetary standards play out right before my eyes at that point. How do you know the gold and silver is there if you aren’t holding it in your hands? That exact instant, when the gold wasn’t in the owner’s hand when he spent it, was the birth of fractional reserve banking way back when, when people accepted that paper saying the gold existed was the same as having gold in their hands. Every bank run in history was caused by the gold not being where the paper said it was. I wasn’t going to sign up for that. I wasn’t going to give it all away, then, there for electronic promissory notes anymore than I had believed that a greenback was the same as a silver dollar when it comes to value. They are two completely different things.

There is a lot of writing that I’ve been squirreling away over the years on this subject. Here’s hoping I get the chance to put it all in order and publish it.

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The Bankers Who Broke the World in 1929

Lords of Finance (2009) by Liaquat Ahamed

I titled my review of this book on Audible “Now I Think I Understand” What do I understand? I understand that spitting the phrase “Keynesian Economics” with contempt simply shows your lack of understanding.

John Maynard Keynes was the only figure of authority who understood how the gold standard strangled economics post world war one. This is the most crucial fact that this book adequately lays out the case for. More than that it shows how the knowledge of the old system hamstrung the men of authority between the wars, keeping them from solving the financial crisis of the Great Depression.

The book also touches on how FDR’s complete lack of understanding of the gold standard actually lead to a reinvention of economics through the second world war and beyond. This book presents an excellent view into financial history. Another piece of work which should be required reading for anyone attempting to understand the subject of economics.

audible & goodreads