The Keynesian Race to Bankruptcy

Gary North reports:

Keynesianism is in the saddle, all over the world. The politicians favor deficits. These deficits are accelerating everywhere. Lenders still lend. They trust Keynesianism. They trust IOU's issued by governments. They see government IOU's as productive. Until this trust wanes, national debt will increase like a plague.

It is clear where this will end: default. The investors who trust government bonds will be ruined. Also, voters who rely on government deficits to maintain their above-market incomes will be ruined. Both groups trust Keynesianism, and they are going to get it, good and hard.