Keynsianism Fallen Upon Hard Times by Bob Chapman

An excerpt from Bob Chapman's weekly publication.
November 10 2010:

Hard times for Keynesianism, no recovery through quantitative easing, Fed not finding the path to sustainable economic growth, policy made in stealth, purging the system a better idea, Bernanke on a suicide mission, when the Fed buys, Treasury debt debases the currency, World Bank wants Gold back into the monetary system.
The cult of Keynesianism is about to come upon very hard times. The quantitative easing plan, known as QE1, did not produce a recovery in the American economy. Now one of its staunchest advocated, Fed Chairman Ben Bernanke, has embarked officially on QE2. It is our belief that QE2 will be no more successful than QE1 and it may well be followed by QE3. You might ask why are not other policies being used the answer is the followers of Lord Keynes don’t know what else to do, and they know what they are doing does not work. They certainly must be waiting for their elitist friends to start another war, as they did in 1939 and 1941. The followers of Keynes control today’s central banks and thus have complete control over money.
Several years from now many will see through the fallacies of Keynes and the nostrums that caused its demise. In the case of the Fed its goal is sustainable economic growth and price stability and that long term inflation expectations remain contained. As we have seen stability has been relative and inflation has been with us for many years, particularly since August 15, 1971, when the US dollar, the world reserve currency, abandoned gold backing. The simple conclusion is you cannot have both no matter what Keynes postulated. Central banks, and particularly the Fed, have allowed inflation to always be present, because deflation strikes absolute terror into their hearts. That is why the privately owned Fed demands total control over the US money supply. The Fed contends that they can control the economy via the money supply and manipulation of interest rates. The result is that stable prices are impossible. Growth has to be accompanied by inflation under Keynesianism; there can be no other outcome.
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