Keynesianism & Multiculturalism Failing

After the United Sates got slapped with it credit rating downgrade, much of what has come out of the White House has been political bantering, and denial. Nothing will happen in the U.S. to address it's credit and debt problems until after the elections in 2012.

Meanwhile Europe is buzzing with accusations that multiculturalism has failed. In the wake of the riots in London after Britain implemented austerity measures to reign in it's spending, and the riots and demonstrations in Greece, Europeans are worried that this is just the beginning of a savage return to austerity. The concept of multiculturalism seems to be failing all around Europe.

The one who started the trend was German Chancellor Angela Merkel. “This approach has failed, utterly,” she said

Read more here

To make matters worse, on the heels of the riots and debates on multiculturalism along comes as short but accurate message from Urs Paul Engeler on the Failure of Keynesianism

It is a short message and the external ink is in German, if you read German you can find it here , if not, I've posted below ;

Die Weltwoche - Switzerland | Thursday, August 11, 2011
Urs Paul Engeler on the failure of Keynesianism

The current economic crisis shows that the state has failed to manage the economy and that politicians have too often adopted the Keynesian approach, writes journalist Urs Paul Engeler in the conservative weekly Die Weltwoche: "By following today's apologists of the British economist John Maynard Keynes (1883-1946), the so-called 'welfare' states pumped too much money (which they didn't have) into consumption: into pensions for all (Europe), exorbitant armament (US), endangered industries (both), and finally bailouts for ailing mortgage banks (also both). This intervention was celebrated by Keynes' disciples as the 'return of politics'. In reality the hopelessly over-indebted states only exacerbated the crisis. Today they are locations of insecurity.

Those who argue that the state should be active with funds, subsidies and interventions - in short that it should perpetuate the debt economy - turn the wheel in exactly the wrong direction."

Emphasis mine

So far the U.S. has not had the same experience among ethnic minority communities that has been seen in Europe, so far, but we haven't begun to implement austerity measures and spending cuts either.

If your feeling a little uneasy about the stability of the world, and have a sense that it may be in for some big changes soon, your probably right.

What to do ? who knows. It's old axiom in business when beginning a new project or a implementing a new strategy to make sure you have an exit strategy, just in case things don't work out. I don't think the Keynesians,or the Multiticulturalists thought about that. They just knew everything would be fine once we arrived at cloud-cuckoo-land, maybe not ?