blissfulsats on Nostr: John Maynard Keynes admits he was wrong: In the annals of monetary history, we now ...

John Maynard Keynes admits he was wrong:


In the annals of monetary history, we now witness the emergence of Bitcoin - a testament to the failures of Keynesian economics and the folly of government control over the economy. This digital currency, born from the ashes of the 2008 financial crisis, stands as a stark repudiation of the very principles I once championed.

As an economist who long advocated for active government intervention in the economy, I must now confront the profound shortcomings of my theories. Bitcoin represents not just an innovation, but a direct challenge to the Keynesian model that has dominated economic policy for nearly a century.

The blockchain technology underpinning Bitcoin achieves what government-controlled monetary systems have consistently failed to do: it creates a transparent, immutable, and decentralized ledger of transactions. This breakthrough exposes the inherent flaws in our belief that central authorities can effectively manage an economy.

Bitcoin's fixed supply schedule, with its predetermined rate of issuance and ultimate cap of 21 million coins, serves as a damning indictment of the inflationary monetary policies I once promoted. It reveals the destructive nature of manipulating the money supply, highlighting how such interventions lead to economic distortions and the erosion of wealth.

The global nature of Bitcoin, transcending national borders and traditional banking systems, demonstrates the inefficiency and obsolescence of our current financial institutions. It shows how these entrenched systems, propped up by government intervention, have stifled innovation and economic freedom.

My advocacy for government management of the money supply now stands exposed as a grave error. Bitcoin represents not just an alternative currency, but a repudiation of the entire framework of central economic planning. It is a triumph of spontaneous order over top-down control, of individual economic sovereignty over government diktat.

As we witness this new monetary paradigm, I am forced to confront the hubris inherent in my economic theories. The belief that a central authority can possess the knowledge and capability to effectively manage an economy is revealed as a dangerous fallacy. Bitcoin and its underlying technology have laid bare the inefficiencies, corruptions, and failures that are inevitable in a system of centralized economic control.

In Bitcoin, we see not just a new form of money, but a fundamental challenge to the Keynesian model. It represents a return to sound money principles, free from the manipulations of central banks and governments. This digital currency embodies the very antithesis of the economic interventionism I championed, offering instead a vision of economic freedom and individual empowerment.

The rise of Bitcoin serves as a powerful reminder of the limitations of economic theories that place undue faith in government intervention. It heralds a new era of monetary systems based on mathematical certainty rather than the whims of policymakers. As economists and citizens alike, we must now reckon with the failures of Keynesian economics and embrace the possibilities of a truly free market in money.

In conclusion, Bitcoin stands as both a rebuke to my life's work and a beacon for a more prosperous economic future. It is a monetary revolution that decisively refutes the principles of government economic control, paving the way for a new paradigm of economic freedom and individual sovereignty.