November 23, 2012

Sir Samuel Britain, here is what Lord Keynes would shout from his grave, if only he could.

Sir, Sir Samuel Britain writes “I have no idea what Keynes would say but I can hear him turning in his grave” “British economic policy echoes Habsburg decline”, November 23.

May I suggest the possibility that Lord Keynes would desperately shout out the following from his grave, if only he could: 

“You fools you have to make banks allocate resources to the most profitable projects which create the most growth which create the most jobs, instead of having these allocating resources to what requires them to hold the least in capital, in order to produce the highest returns on their equity.”

When a nation starts giving more importance to guarding what it has, and to assure their banks lend to “The Infallible”, than about what it can get by allowing their banks to lend to “The Risky”, like small businesses and entrepreneurs, it stalls and falls. The scarcity that currently most threaten our nations is that of pure un-distorted risk-taking.