by Gerard Jackson
An important thing to note -- apart from Obama's utter economic illiteracy -- is that his economic advisors are Keynesians and that it is Keynesianism that got the world, particularly the US, into the current economic mess, that and the fallacious the price rule. The reckless monetary policies of the world's central banks have created enormous imbalance that must be liquidated. These imbalances -- malinvestments in Austrian parlance -- were generated by an irresponsible expansion of bank credit that distorted international prices and domestic patterns of production. As the US economy is about 30 per cent of the global economy the fed's must be held accountable for most of the damage.