Keynes' Most Interesting Statement

Sunday, August 29, 2010

This does not sound very earthly. From John Maynard Keynes "The General Theory of Employment, Interest and Money (London: Macmillan, 1936), p. 129."
"If the Treasury were to fill old bottles with bank-notes, bury them at suitable depths in disused coal-mines which are then filled up to the surface with town rubbish, and leave it to private enterprise on well-tried principles of laissez-faire to dig the notes up again (the right to do so being obtained, of course, by tendering for leases of the note-bearing territory), there need be no more unemployment and, with the help of repercussions, the real income of the community, and its capital wealth, would probably become a good deal greater than it actually is."
This is Ponzi economics at its best.

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