Economics

Welcome To The Rabbit Hole

The purpose of this section is to reveal the current economic system. This is a deep rabbit hole. We are going to look at how the system really works. It is not as complicated as people think. Economic equations and math are used in connection with advanced terminology by universities to purposely make this subject seem complicated. This is really a case of making economics more complicated than it needs to be

Now add to the mix Keynesian Economics and you will see things get a bit more complicated. John Maynard Keynes developed this economic theory during the 1930’s in an attempt to understand the Great Depression. He was a British economist and his theory was not the popular school of thought at the time.

The central theme of this theory is that government intervention can stabilize the economy. Mr. Keynes started a revolution in economic thinking that overturned the prevailing belief that the free markets would automatically provide full employment for everyone who wanted a job.

There are three main principles in the Keynesian description of how the economy works:

Aggregate demand is influenced by many economic decisions—public and private.
Changes in aggregate demand, whether anticipated or unanticipated, have their greatest short-run effect on real output and employment, not on prices.
Prices, and especially wages, respond slowly to changes in supply and demand

Keynes believed that inadequate overall demand could lead to prolonged periods of high unemployment. An economy’s output of goods and services is the sum of four components: consumption, investment, government purchases, and net exports. Therefore, Any increase in demand has to come from one of these four components.

http://en.wikipedia.org/wiki/Keynesian_economics

http://www.maynardkeynes.org/maynard-keynes-economics.html

You can see how this can get more complicated! So to simplify this think of it like this. When people don’t spend enough money and they save then the economy gets bad because there is less of a demand for goods and services. At that point the government needs to increase its spending to make up the difference.

It is important to note that Keynesian Economics was developed while the dollar was still on the gold standard. Today our economic system is based on a system of debt and that changes everything! Today our government and governments around the world have embraced Keynesian Economics and that is why they encourage spending. That is one reason why the government spends so much. The problem is the debt based system we all find ourselves in will one day imploded as it is ever-increasing, and the can is getting kicked down the road by our politicians.

All of the information you are about to learn can be found in greater detail from my book “The Truth About The Coming Global Currency Reset.” This book also goes into great detail about a number of other economic related topics. You will learn how the global economic system really works.