There has never been a single Keynesian success in any place at any time. David Stockman does a review of Japan as it goes into its third recession since the 1990s. But what is notable is that the Japanese seem incapable of learning from their mistakes.
In short, these Keynesian apparatchiks have created a straw man that suits the purposes of their political masters on the fiscal front by rationalizing the monetization of endless amounts of public debt; and it empowers the state’s central banking branch to engage in plenary manipulation of the entire financial system on the misbegotten theory that fiat credit and bubble wealth can cause real production, incomes and wealth to rise.
Stated differently, Keynesian fiscal policies and central banking regimes have buried the public sectors of most of the world’s major economies in unsustainable debt. Now they propose to double down on more of the same because an entire generation of politicians have been house-trained in permanent fiscal profligacy and endless kicking of the fiscal can down the road.
To be sure, in putting off Japan’s day of fiscal reckoning once again, this time until 2017, Prime Minister Abe is proving himself to be a certifiable madman. In short order, however, he will have plenty of company all around the planet.
That was the conclusion; now go read the rest.