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Saturday, November 22, 2008

Week in Review: The Death of Keynes Mercantilism?

"It is not by augmenting the capital of the country, but by rendering a greater part of that capital active and productive than would otherwise be so, that the most judicious operations of banking can increase the industry of the country" - Adam Smith

For decades now, Keynes has been held as the pinnacle of "capitalist" thought, and the latest in the evolution of what started with Adam Smith.

There's only one tiny problem with that little concept.

Keynes was no capitalist. Keynes ideas are a direct descendant of everything that Adam Smith opposed. Keynes ideas are a descendant of Mercantilism. Capitalism isn't dying, because Capitalism hasn't been practised. Keynes Mercantilistic thoughts and theories are what are dying.

Keynes firmly supported concepts found in Mercantlism. Which is that government should work in partnership with private companies.

In a Capitalistic society, there can be no lobbyists.

In a Capitalistic society, governments do not work as partners with private industry.

In a Capitalistic society, private industries do not seek capital from the government when they are doing poorly.

How should we be stay prepared to trade our way out of this mess? Buy some physical silver today, since the gold / silver ratio is favoring silver. And we can take advantage of deflation by starting to buy a little physical silver since the prices are depressed. Where do you buy it from? What about my hyperinflation video? What about the disagreements that ensued? What did we discuss on the Blog TV show? We mention this on my vlog entry for this "Week in Review" ...

(Video Included. If you're seeing this from Email subscription? Click on the Title Link in the Email to View the Video ...)

Stay safe all ...

Here's the link to the site that Ohio1998 turned me on to: The Northwest Territorial Mint.

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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