Friday, November 8, 2013

Keynesian Thinking Explained

Paul Krugman has this posted over at his site, as ECB Thinking Explained and writes:
A correspondent sends me this picture, snapped from the river in Frankfurt, right near the ECB’s headquarters.
But isn't this really Keynesian thinking and the belief that the economy is driven by confidence or lack thereof?


  1. Krugman nails it, unwittingly: of course the Confidence Ferry would be found at the ECB, since there's no greater collection of Confidence Men to be found in all of Europe.

  2. Is that a Confidence Ferry or Confidence Fairy?

  3. The very nature of credit, currencies, money, and economic systems changed the week ending November 8, 2013, as the Eurozone emerged as a regional bloc having common credit foundation in the monetary policy and banking seigniorage of ECB Chairman Mario Draghi.

    Through the word, will, and way of Mario Draghi, all those living in the EU now have a common credit experience. His assurance of Eurozone credit liquidity mandated an EU debt union.

    Through Mario Draghi’s assurance of credit liqudity, he monetized all debt within the EU, and single handedly crafted a region, having not only a common currency experience, but also a common credit experience. Through the assurance of credit liquidity, he effected regioncraft and laid the foundation of trust for More Europe, that is the foundation for unified economic governance which will consist of nannycrats overseeing the factors of production, commerce and trade via statist public private partnerships.

    All those living in the EU now have economic identity, experience and monetary life, in the seigniorage, that is the moneyness, of Mario Draghi. He is rightly titled the confidence man, running the ship of confidence in the Eurozone.

    Seigniorage no longer comes through the traditional credit marketplace. Now, through mandate, that is through diktat, Mario Draghi has become the EU’s Seignoir, that is the top dog banker who mints money, and takes a cut. He single handedly created diktat money replacing traditional fiat money, terminating the age of liberalism and introducing the age of authoritarianism in Europe.

    Under liberalism, Mario Draghi, provided ECB monetary policies supporting investment choice via schemes of credit liquidity, specifically LTRO 1, LTRO 2, and OMT. Now under authoritarianism, the ECB Chairman provides monetary policies of diktat supporting a banking supervision union as well as a debt union.

    Just as Milton Friedman was the father of the Free To Choose fiat money system in 1971; Mario Draghi is the father of the diktat money system in 2013.

    Alasdair Macleod writes in Gold Money. There’s A Liquidity Crunch Developing. I agree and relate that a Financial Apocalypse, that is a global credit bust and financial system breakdown, is imminent; it’s origin is in the credit excess of the world central banks monetary policies of credit easing and Global ZIRP. There is waiting in Europe’s wings, the Sovereign, who will rise to political power to complement the Seignior’s monetary power, through his adept knowledge of regional framework agreements, which will be created by national leaders who meet in summits and workgroups to renounce national sovereignty and announce regional pooled sovereignty for regional security, stability and sustainability.