Dodgy to follow Keynes which the Western Fabian Word has done- ignoring the Mises economic standard…..
I don’t like making ad hominem attacks, but what I’ve read about the Fabians and Keynes over the last few days makes it necessary to assassinate Keynes (- in the figurative sense!) – so that he, along with Marx and other corrupted evil geniuses, do not ever arise again.
Why this focus on Keynes all of a sudden?
I’m still learning. Learning is a lifelong endeavour and one can’t simply use the pretext of one’s degrees to claim expertise and wisdom. Being a science graduate, I barely knew anything about economics till I decided, after joining the IAS, to study it seriously. I realised that I needed to learn economics if to be an effective policy maker. But the MA in economics that I then obtained from Panjab university was more a technical degree than a fundamental study of the logic and debates of the discipline (I did well in mathematical economics because of mathematics background but I now realise that one needs to read widely, and iteratively, to even begin to understand economics).
I further studied economics in Australia (Curtin university) and then in USA. Only then did I started reading seriously about Keynes. However, Keynes had largely been discredited in the acedemia by then. (As Krugman notes, Keynes has not been taught in most graduate courses at least since the mid-1970s). I was therefore taught Lucasian mathematical macro-economics and some dynamic theory by Richard Day. I developed some idea of Keynesianism in this process (including a bit of IS-LM stuff), but not much.
Modern macro-economics based on micro-economic foundations didn’t make much sense, either. No doubt, it is better attempt to understand the real world than Keynesianism is, but it remains divorced from the fundamental principles of freedom and the social contract.
I therefore find the classicals, including FA Hayek, far more satisfying and consistent. Supplementing this knowledge with my experience in public administration, I came to a coherent understanding of the economy that involves understanding the incentives at work within a society’s institutions, and assessing its level of freedom. That is a classical liberal approach, quite different from Keyensian or Marxist approaches. Without firm roots in classical economics, I believe that modern economists tend to rapidly move into statist solutions.
Keynes still has a significant presence in the academia through New Keynesianism (e.g. Stiglitz, Kruman), and receives prominence each time the US government agencies and Federal Reserve Bank – that have diligently followed his ideas – mess up things.
Indeed, that’s the other point – that Keynes is still very prominent inside government agencies. Keynes is the cause of serious government failure across the world and significant devaluation of currencies. The (Fabian) London School of Economics, the League of Nations, the New Deal, the welfare state, various international central bank concepts that led to the International Monetary Fund, the World Bank, the Brettonwoods system which led to the collapse of the gold standard, and even the United Nations – all have been strongly influenced by the Fabians, but more particularly Keynes.
Hence his ideas MUST BE OPPOSED. Till today I only opposed his ideas. From today, I now oppose his person, as well. Keynes at Harvard has opened my eyes. [Download the Word version which I find is easier to read and search]
To ensure that I wasn’t jumping to rash conclusions, I did some quick research. this research confirmed that Keynes was indeed a deeply corrupt, devious person, who plotted to shift the world towards his own brand of socialism – by stealth. It is therefore my mission (apart from my main mission – to reform India) to destroy Keynesianism across the world. And one of things I must do is to destroy his character. Sometimes ad hominem attacks are warranted.
The character assassination of Keynes
Keynes theories and policies make sense only in relation to his character. His main policy goal in life was the destruction of capitalism and his chosen method was to destroy the value of money, to destroy private savings, and to orchestrate the takeover of all investment by the state. To achieve that goal he deployed the Fabian method of deception and subterfuge.
Keynes the pervert
That he was a homosexual – and a particularly promiscuous one at that (many Fabian socialists were part of his network) – was news to me (such things aren’t mentioned in textbooks on macro-economics). Thus, ”In 1967 the world was startled by the publication of the letters between Lytton Strachey and Maynard Keynes. Undisputed evidence in their private correspondence shows that Keynes was a life-long sexual deviate. What was more shocking was that these practices extended to a large group. Homosexuality, sado-masochism, lesbianism, and the deliberate policy of corrupting the young was the established practice of this large and influential group which eventually set the political and cultural tone for the British Empire.” [Zygmund Dobb's Keynes at Harvard]
“Keynes always ready to guide others freely advised his fellow debauchees to go to Tunis, “where ‘bed and boy’ were also not expensive.” Keynes at Harvard]. Thus Keynes probably molested children.
He married Lydia Lopokova (in 1925 at age 42), so that in public he would appear to have a normal life, but “Keynes marriage was obviously ‘an arrangement’ since he continued his association with his male amours until his death. In fact, his male sweetheart, Duncan Grant, served as best ‘man’ at his wedding.” [Keynes at Harvard]
Keynes was a chronic liar and a fraud
Keyenes was a serial liar and deceiver.
Weak knowledge of economics but falsely putting down von Mises:
“The young Keynes displayed no interest whatsoever in economics; his dominant interest was philosophy. In fact, he completed an undergraduate degree at Cambridge without taking a single economics course. Not only did he never take a degree in the subject, but the only economics course Keynes ever took was a single-term graduate course under Alfred Marshall.” [Source:Murry Rothbard's Keynes, the Man, p.14]
Because of his father’s influence with him and his own passion for socialism (Marshall was the economic advisor of the Fabians and railed against ‘inequality’- see Joseph Schumpeter’s History of Economic Analysis, p. 765 – cited in Keynes at Harvard), therefore Marshall was taken in by Keynes and gave him a job. A case of nepotism at its worst.
“Keynes began his systematic campaign of destruction against Pigou when Pigou rejected his previous approach in the Treatise on Money, at which point Keynes also broke with his former student and close friend, Dennis H. Robertson, for refusing to join the lineup against Pigou. The most glaring misstatement in The General Theory, and one which his disciples accepted without question, is the outrageous presentation of Pigou’s views on money and unemployment in Keynes’s identification of Pigou as the major contemporary “classical” economist who allegedly believed that there is always full employment and that money is merely a veil causing no disruptions in the economy—this about a man who wrote Industrial Fluctuations in 1927 and Theory of Unemployment in 1933, which discuss at length the problem of unemployment! Moreover, in the latter book, Pigou explicitly repudiates the money-veil theory and stresses the crucial centrality of money in economic activity. Thus, Keynes lambasted Pigou for allegedly holding the “conviction . . . that money makes no real difference except frictionally and that the theory of unemployment can be worked out . . . as being based on ‘real’ exchanges.” An entire appendix to chapter 19 of The General Theory is devoted to an assault on Pigou, including the claim that he wrote only in terms of real exchanges and real wages, not money wages, and that he assumed only flexible wage rates (Keynes 1936: 19–20, 272–79).
Keynes, even at 55, advocated immorality as a philosophy of life
The following statement of Keynes summarises his immoral character:
“In our opinion, one of the greatest advantages of his [Moore’s] religion was that it made morals unnecessary….We entirely repudiated a personal liability on us to obey general rules. We claimed the right to judge every individual case on its merits, and the wisdom to do so successfully. This was a very important part of our faith, violently and aggressively held, and for the outer world it was our most obvious and dangerous characteristic. We repudiated entirely customary morals, conventions and traditional wisdom. We were, that is to say, in the strict sense of the term, immoralists. (Essays in Biography. The Collected Writings of John Maynard Keynes. Vol. X. London: Macmillan,  : 142–43) [Murry Rothbard's Keynes, the Man, p.7]
Moore (- an active Fabian and , whose philosophy Keynes claimed to follow) was more than a mere philosopher: ”Lytton Strechey and J.M. Keynes … sought Moore’s advice in arbitrating sexual disputes relating to their claims for this, or that, male sweetheart. Moore was installed as unofficial mediator on these jurisdictional claims. Various accounts of Moore, Keynes and Lytton Strachey lying on a rug together, in different rural retreats, attest to Moore’s physical association among that homosexual coterie.” [Keynes at Harvard]
Keynes the megalomaniac
Keynes was unbelievably arrogant. E.g.: ”Keynes “had a clear idea of his role in the world; he was . . . the chief economic adviser to the world, to the Chancellor of the Exchequer of the day, to the French minister of finance, . . . to the president of the United States.” Pursuit of power for himself and a ruling class meant, of course, increasing adherence to the ideas and institutions of a centrally managed economy.” [Murry Rothbard's Keynes, the Man, p.11]
“Johnson notes that Keynes’s “instinctive attitude to any new situation was to assume, first, that nobody was doing anything about it, and, secondly, that if they were, they were doing it wrong. It was a lifetime habit of mind based on the conviction that he was armed with superior brains . . . and, Cambridge Apostle that he was, gilled with superior sensibilities” (ibid.: 33).” [ibid]
Keynes engaged in insider-trading
”Whether Keynes used inside Treasury information to make such investment decisions is still unproven, although suspicions certainly remain (Skidelsky 1983: 286–88).” [Murry Rothbard's Keynes, the Man, p.14]
In my view, given what we know of Keynes’s character, he almost certainly must have used insider information to make money. It is virtually impossible, given his character, that he did anything honestly.
Keynes’s close association with communist Russians and Russian spies in the West
His Russian wife, Lydia Lopokova, was deeply linked with the Russian communists: ”In the midst of such repressive conditions, Lydia and Maynard were allowed unrestricted privileges to visit relatives and to travel freely. Even foreign heads of Communist Parties and representatives of the Communist International could not secure such a broad Soviet indulgence” [Keynes at Harvard]
- ”[Harry] White served as a Soviet agent while doubling with Keynes as the architect of the World Bank and the International Monetary Fund” [Keynes at Harvard] (White remained close to Keynes, even at his deathbed. Keynes surely knew a of communists very closely).
Keynes was a closet socialist
Keynes’s version of socialism was different to Marx’s but it had many elements in common. Not only was central bank not based on the gold standard a crucial part of his model – so that currencies could be debased – but he had this idea (along with Marx) that a smart set of people existed who could rule the rest of us. Keynes always tried to massage his language to pretend he was not preaching socialism, but that was consistent with the Fabian socialist strategy.
Keynes’s fascination with inequality and ‘classes’ in society
That Keynes was in favour of equality is obvious even in The General Theory (p.372) where he writes: “The outstanding faults of the economic society in which we live are its … arbitrary and inequitable distribution of wealth and incomes.” [Note how he calls the results of the market system - of voluntarily choice - as "arbitrary"]. Jealousy against the rich drives Keynes, as it drove Marx.
In The Economic Consequences of the Peace he wrote: “Europe was so organized socially and economically as to secure maximum accumulation of capital. While there was some continuous improvement in the daily conditions of life in the mass of the population, Society was so framed as to throw a great part of the increased income into the control of the class least likely to consume it. The new rich of the nineteenth century were not brought up to large expenditures, and preferred the power which investment gave them to the pleasures of immediate consumption. In fact, it was precisely the inequality of the distribution of wealth which made possible those vast accumulations of fixed wealth and of capital improvement. . . Herein lay, in fact, the main justification of the Capitalist System. .If the rich had spent their new wealth on their own enjoyments, the world would long ago have found such a regime intolerable.”
Further: “. this remarkable system depended for its growth on a double bluff or deception. On the one hand the laboring classes accepted from ignorance or powerlessness, or were compelled, persuaded, or cajoled by custom, convention, authority and the well-established order of Society into accepting, a situation in which they could call their own very little of the cake, that they and Nature and the capitalists were co-operating to produce. And on the other hand the capitalist classes were allowed to call the best part of the cake theirs and were theoretically free to consume it, on the tacit underlying condition that they consumed very little of it in practice. The duty of “saving” became nine-tenths of virtue and the growth of the cake the object of true religion. There grew round the non-consumption of the cake all those instincts of Puritanism which in other ages has withdrawn itself from the world and has neglected the arts of production as well as those of enjoyment. . . Saving was for old age or your children; but this was only in theory—the virtue of the cake was that it was never to be consumed, neither by you nor by your children after you.”
I can’t distinguish between this Keynes’s opinions and Marx’s, in his Communist Manifesto. Keynes had a strong socialist mindset, focused on class analysis, and inaccurate in many ways. [See this for more details]
Letter to his mother:
In 1917 at age 30 he wrote to his mother about his passion for communism: ”My Christmas thoughts are that a further prolongation of the war, with the turn things have taken, probably means the disappearance of the social order we have known hitherto. With some regrets I think I am on the whole not sorry. The abolition of the rich will be rather a comfort and serve them right anyhow. …Well, the only course open to me is to be bouyantly bolshevik; and as I lie in bed in the morning I reflect with a good deal of satisfaction that, because our rulers are as incompetent as they are mad and wicked, one particular era of a particular kind of a civilization is very nearly over.” [Keynes at Harvard]
Socialism and “socialisation”
“Keynes’ book, End of Laissez-Faire, was his most pronounced and clearcut advocacy of socialism.” [Keynes at Harvard] In this book, “Keynes boldly declares: In fact, we already have in these cases many of the faults as well as the advantages of State Socialism. Nevertheless we see here, I think, a natural line of evolution. The battle of Socialism against unlimited private profit is being won in detail hour by hour.”[Keynes at Harvard]
Mrs. Joan Robinson (a well known economist and colleague of Keynes) herself noted that the differences between Marx and Keynes are only verbal (not real). She wrote; “The time, therefore, seems ripe to bridge the verbal gulf” between the two. [Keynes at Harvard]
Schumpeter, a socialist, was very pleased that Keynes’s work rivaled Marx’s in undermining capitalism. [Keynes at Harvard]
“Margaret Cole, English Fabian revolutionary, has stated: “We Socialists used Keynes and the U.S.S.R. as touchstones” (Circa 1923).” [Keynes at Harvard] Keynes and Marx were naturally seen as of the same piece by those who knew what socialism was all about.
Even the General Theory: “The State will have to exercise a guiding influence on the propensity to consume, partly through its scheme of taxation, partly by fixing the rate of interest, and partly, perhaps, in other ways. Furthermore, it seems unlikely that the influence of banking policy on the rate of interest will be sufficient by itself to determine an optimum rate of investment. I conceive, therefore, that a somewhat comprehensive socialization of investment will prove the only means of securing an approximation to full employment. . .It is not the ownership of the instruments of production which it is important for the State to assume. If the State is able to determine the aggregate amount of resources devoted to augmenting the instruments and the basic rate of reward to those who own them, it will have accomplished all that is necessary. Moreover, the necessary measures of socialization can be introduced gradually and without a break in the general traditions of society. (p.378)
Also: “The central controls necessary to ensure full employment will, of course, involve a large extension of the traditional functions of government.” (General Theory, p.379)
Keynes’s deep relations with the Fabian society
Few people knew during his lifetime that Keynes was an active member of Fabian society. This was typical, being the standard approach of infiltration adopted by the Fabians. But his association with the society was very deep.
Through his father:
His father was an active member right through. Indeed, “The elder Keynes book was required reading among Fabian socialists and was listed for sale in the official organ of the American Fabian Society under the listing, “Recommended books on Socialism and Social Reform.”” [Keynes at Harvard]
Through George Bernard Shaw
“[George Bernard] Shaw was a chief patron and sponsor of Keynes in Fabian socialist circles in England and the United States. Keynes gave Shaw a full report of the progress he made in writing books over a period of seventeen years.” [Keynes at Harvard]
“In 1925 in an article entitled “The Future” Keynes declared rapturously, “What a debt every intelligent being owes to Bernard Shaw!” This statement was repeated by Keynes in 1932″ [Keynes at Harvard]
“In 1926 Keynes emphasized his pro-bolshevik position by writing that he was on the “extreme left” as compared to Sidney Webb the head of the Fabian socialists in Britain.” [Keynes at Harvard]
Fabian society events:
“For many years editions of the Fabian News bore announcements of Keynes’ lectures at Fabian socialist functions.” [Keynes at Harvard]
Fabian society also re-published most of his works under its banner. That it also helped use its contacts to sell his books is outlined in Keynes at Harvard.
Keynes’s influence on Hitler’s economic policies
Fabian socialists and Keynesians actively supported communist USSR and the two main fascist dictators – Hitler and Mussolini. Note also that Keynes designed Russia’s currency – in his official capacity in the UK Treasury. “Soviet officials were effusive in their thanks to Keynes for designing the first Soviet currency for them” [Keynes at Harvard]
“In 1928 on his way back from the Soviet Union Keynes had a long conference with the German economist Hjalmar Schacht. Keynes reported that he and Schacht agreed on Keynesian policies. Thirty-four months later Schacht joined hands with Hitler and utilized Keynesian methods to socialize the German nation for a war economy. When World War II began Keynes declared, “that Britain would have to employ all of the weapons of Dr. Schacht.” Later Keynes reiterated that, “the various recipies devised by Dr. Schacht for Germany would have to be applied by Britain. . . .”” [Keynes at Harvard]
“Keynes once remarked that “in offering a theory of employment and output as a whole, which departs in important respects from the orthodox tradition,” he might expect “less resistance from German, than from English, readers.”For, his theory of output as a whole, he said, was “much more easily adapted to the conditions of a totalitarian state” than was the then reigning economics of laissezfaire. This disarming sentiment appears towards the end of the preface to the German edition of The General Theory.” [Keynes and Hitler, Narindar Singh, Economic and Political Weekly, Vol. 29, No. 42 (Oct. 15, 1994), pp. 2755-2757+2759-2766].
Mussolini was (at least indirectly) influenced by Keynes:
“Mussolini personally set his approval and signature over a book which proclaims: Fascism entirely agrees with Mr. Maynard Keynes, despite the latter’s prominent position as a Liberal. In fact, Mr. Keynes’ excellent little book, The End of Laissez-Faire (l926) might, so far as it goes, serve as a useful introduction to fascist economics. There is scarcely anything to object to in it and there is much to applaud.” [Keynes at Harvard]
Lenin was a fan of Keynes: “In 1919 Nicolai Lenin issued a wildly enthusiastic panegyric on Keynes book, The Economic Consequences of the Peace. He declared, “Nowhere has the Versailles Treaty been described so well as in the book by Keynes.””
(The fact that Keynes got unrestricted access to travel in USSR is also related to a long-standing and close relationship between the Fabians and Lenin – and Keynes’s direct relationship with Russian spies.]
Keynes the anti-Semitic racist
As a 17-year old Etonian Keynes wrote the following in an essay entitled, ‘The Differences between East and West: Will They Ever Disappear?’
“[W]hether these two branches of the human race [European and Oriental] will continue to live side by side, or whether the one will succeed in absorbing the other. We can best discuss this question by taking into consideration the characteristics of two oriental races…viz, the Chinese and the Jews [who]…have done their utmost to make themselves indistinguishable from Europeans and they have signally failed.
“It is not that the Jews are traditionally the accursed race that makes anti-semites, it is because they have in them deep-rooted instincts that are antagonistic and therefore repulsive to the European, and their presence amongst us is a living example of the insurmountable difficulties that exist in merging race characteristics in, making cats love dogs” [Keynes 1900:2]. ["Was Keynes Anti-Semitic?" by Anand Chandavarkar, Economic and Political Weekly, Vol. 35, No. 19 (May 6-12, 2000), pp. 1619.]
Now, this was when he was only 17. Did he change his mind at 42? No!
“Keynes, it can be noted, tended to explain away mass murder in large part on the “Russian and Jewish nature” rather than a logical development of socialism itself. The goal of socialism is clearly Keynes’ objective. It is interesting to note the undercurrent of anti-semitism in Keynes’ reference to “some beastliness” in “Jewish nature.” In the same article Keynes also observed that he had doubts “Russian Communism” would “make Jews less avaricious.” (John Maynard Keynes, A Short View of Russia, Hogarth Press, London, 1925.) [Keynes at Harvard].
This was only the highlight of the material I’ve read in the last couple of days. There’s lot more in the references I’ve provided.
In brief, I’d suggest that Keynes’s work should be given the same stern look we use to analyse Hitler’s writings: a sociopath with deadly goals for society. We can’t forget the person where such extreme deviousness is involved. Indeed, we can’t forget the devious nature of the Fabian society itself while examining the work of any Fabian.
Keynes has undoubtedly managed to take the West well down the slippery slope that Hayek had warned against. Hayek has always been right (so have the classical liberals), but his message got lost in the glitter, showmanship, and shenanigans of Keynes. Sociopaths have a way with people – and unless the people are very alert, they’ll be taken for a big ride.
It is time we take the world towards genuine freedom that was interrupted by the Marx and Keyenes (and so many of their confused followers), and push back the intrusive state till it is finally compatible with the level that ensures the optimal level of freedom for everyone.
In the end, I must note that while Keynes was a devious character, not all Keynesians deserve to be considered in this manner (though the Fabians should be watched very carefully). Many academic and government Keynesians might genuinely believe that Keynes was “saving capitalism”. They’ve got fooled big time, but they are to be considered as stupid, not evil. It is the intelligent socialists like Keynes that we must be wary of.
My next blog post, from Murray Rothbard, should help remove the delusion of the Keynesians that he was in any way right.
Read also this anonymous but thoughtful piece: The Disaster of Keyenes.
- Keynes the incompetent economist
- More about Keynes’s incompetence
- The Mont Pelerin Society: Hayek’s heroic attempt to establish freedom
- Sex, Science and Profits by Terence Kealey
- You can either choose a moral position, or be a thief
- New Deal: an example of massive government failure
- The deceptive, murderous Fabian socialists
- Socialist USA: lessons for the world
- India’s lucky escape from the extremes of Fabian socialism: The truth about George Bernard Shaw
- Can India catch up?
comment column more on Keynes!