Fixing debt with more debt

It doesn't make sense to anyone with the fiscal experience of running a household budget. But that's exactly what the world's leaders are proposing. Terence Corcoran writes in the Financial Post

The great muddle of Keynesian economics is crashing in on statists everywhere. The spending that was supposed to save Europe and the world economy is driving it to ruin. The Keynesian economists and forecasters who promised it would work and were plucking "green shoots" out of the economic desert failed to see the debt crisis rolling up behind them. As Peter Foster wrote on this page last week, the world is in the grip of Keynesian contagion, not the private or capitalist meltdown so many of the G20 leadership blamed when the crisis first struck.

This obsession with Keynesian economics will bring us nothing but economic disaster. Seriously. Are there any leaders willing to follow the Hayek school of thought?

Here's an amusing yet brilliant video comparing Hayek vs. Keynes plus analysis from mises.org:



On a more serious note, an interview with Freiderich Hayek: