This will be short and to the point: Ambrose Evans-Pritchard
sees Keynesian
stimulus in the bubbling fight over a few rocks in dispute between China
and Japan:
Asia is on the cusp of a full-blown
arms race. The escalating clash between China and almost all its neighbours in
the Pacific has reached a threshold.
War as a diversion? One
that would be valuable to China, Japan, and the US given the economic problems
faced by these governments?
All other economic issues at this
point are becoming secondary.
Yes, perhaps. Ambrose
certainly sees it this way:
Even if the immediate crisis can be
defused, we are clearly sliding into a new Cold War. While it is dangerous, it
could have paradoxical and powerful side effects. Rearmament lifted the world
economy out of slump in the late 1930s, working as a form of concerted
Keynesian fiscal stimulus. It could do so again.
This would be an answer of sorts to
the West's "secular stagnation" – to use the term of former US
treasury secretary Larry Summers – or the liquidity trap as others call it. But
be careful what you wish for.
Ambrose, perhaps you
should be careful. Why do you so easily
accept the connection of death and destruction as being the cure for economic
stagnation? Is it possible that good can
ever come from such total evil?
Even if your moral center is a mess, don’t you at least
understand the fallacy of the broken window?
If you are so gung-ho to intervene, why not put two new cars
in every driveway? At least millions don’t
then have to be murdered for your catastrophic theory – they will merely die
quietly due to your continued advocacy of interventions.
"War Is the Health of the State"
ReplyDeletehttp://www.bopsecrets.org/CF/bourne.htm
Nuff said
Abu