Fisher developed The Debt Deflation Theory of Great Depressions and Keynes wrote The General Theory after the 1929 crash. And, of course, the FDIC, the SEC, and Glass-Steagle came after the '29 crash, under FDR. In the last 30 years we have managed not only to repeal Glass-Steagle and neuter financial oversight through appointment of regulators who do not believe in regulating, but we have also successfully un-learned and actively repressed the insights of Keynes. Spend enough money promulgating self-serving nonsense and it becomes the new reality. Unfortunately that does not mean that it will work.
How deep will be our degradation? How many billions of people will have to die? To what extent will the carrying capacity of the planet have to be impaired? Will even any of this matter? Will astro-turfed "popular" movements even more inane and manevolent than the Tea Baggers arise, movements that will insist on actions that only worsen the situation? The super rich will find themselves the Oligarchy of Hell, and will consider that they have done well. If they bring about a climate apocalypse or a nuclear winter, it could not happen to a more deserving bunch of sociopathic assholes. But it is a pity for the remaining 99.99% of the world's population. Being struck by a 100km diameter asteroid impacting perpendicularly might be a mercy.
Norman O. Brown was right. Our situation really is Life Against Death and death seems everywhere triumphant. But not totally, not finally, not yet. So on we go further into the madness, trying to shine a small bit of sanity, as best we see it. As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
Anyhow, given the tenor of "advice" given in opinion pieces over the economic crisis, it seems evident that "economists" are writing poisoned letters, as old rivalries burble up to the surface.
Krugman comes off as a Eurozone hater, until you realize his distaste for neoliberal deficit hawks presiding over European economies. If one of Krugman's pals was in charge, the EU would be the greatest thing ever!
