Keynesian economics is valid

I. The Infinite growth fallacy. The market system is self is fundamentally flawed for operation in a 21st century climate, How ever the Keynesian model which centers around Aggregate demand as its core measurement of economic health is tied to the economies ability to continuously grow. Keynesian economics, as a product of the 20th century's is based on 20th century understandings of global resources. Despite the Global Economic depression of the 1930's ( which was not caused by any one single factor alone) the last two-centuries have been marked by nearly unhindered economic growth. Keynesian Economic theory is such that any point a Market short fall arrives the Government will step in, spend a lot of money and velocity of money ( the circular flow) will, stimulate the economy. Stimulus for the purpose of stimulus in the economy is a simulation of economic growth but creating artificial forces in the market either by artificial demand ( government buying ^%$# up) or artificial production by subsidizing production under specific terms-or-even the subsidizing against a product (http://www.bloomberg.com... ). I want to remind you that at this moment we are talking Government intervening in the market for the specific purpose of creating an economic stimulus. We aren't talking about something logistical in a vacuum. Of course the governments can build Roads and of course they can fund Research and development. But we are talking about the concept of building a road for the sake of building the road in order to stimulate the industries related to road building. This practice can only simulate market forces otherwise at work. The end product is a simulation of growth while we wait for the market system to find a new resources to exploit, a new industry to form or any new economic force to generate more wealth. At the end of the day the vast majority of economic doctrines which find their roots in the 20th century can function only with in the constraints of a specific set of parameters met in a specific configuration of a market system. Keynesian economics is rooted in an age of progress fueled by resource consumption, a set of market parameters that are no longer met in the economic reality. In order for Keynesian model to be successful the economy MUST grow continuously. But that is no longer a viable option.II. Modern Economic Realities Our modern economic reality is one where Global resources are continuously being exploited to fuel an ever more difficult to achieve rate of growth. In China, there are entire ghost cities... built with no residents. http://www.zerohedge.com... Which is being done in an effort to Stimulate economic consumption...but it is widely known that China is hitting the end of its ability to create artificial demand. Entire cities sit empty in a country that cannot produce enough food domestically to feed its population. http://www.globaltimes.cn.... Global resources simply cannot meet the current life style demands of our Global population while operating under current Global market practices for current global market goal. China is proving that there is no economic messiah coming, no new economic sector is going to open up, no new growth will occur in the developed world and the developing world is hitting a wall that we all knew would occur at some point. The Demand for resources from an Indian middle class is now conflicting with American and European resource demands There isn't enough production capacity on this planet to have 7 billion Americans( reference to life style choices). The government cannot wave a magic want and create jobs... nor can it create new consumable resources by stimulus. it won't work this time, it isn't working this time. The system faces threats from Automation http://www.economist.com... ... Climate change : http://climate.nasa.gov... and More. III. World War II So this is the most over used Keynesian talking point in existence. Even though there is truth that the total mobilization of resources for war ended the Depression in the Victorious United States ( we where the only ones who really came out on top.) The set of circumstances which allowed for that event CANNOT BE DUPLICATED. We all know the reasons why : Too few resources are used to create too much damage. Our weapons are too efficient to be useful anymore. In truth this argument about World War II highlights the darkest side of Keynesian theory. It simply doesn't care. Keynesian Economics does not concern it self with the human totals, in this respect it is a simply dangerous system with a dark view on the world, expressed openly with the saying 'we are dead anyways'... I grant you this statement is not false but to tout it openly as a driving philosophy is very.........dark.IV. Monetary policyIt is not really practical to separate Keynesian economics from the frame work of Modern Money mechanics, The modern money mechanics which are built with an out look of continuous growth, as is obvious in the design of a currency issued at interest by a private entity, a system designed in the 20th century no less and here is perhaps the greatest of instabilities in Keynesian monetary policy. ( yes I am going to say it.) Its the currency of faith. Its Unicorn money, Leborchaun gold or Half Life 3... what ever you want to call it, its based on nothing but the trust that its its worth something. It doesn't represent any resources... or it doesn't represent ( directly) economic productivity... it represents nothing tangible. For that reason, the currency of today is unmoored from reality. Fundamentals are virtually none existent in dealing with the currency. This is a flaw that makes the system unstable and we see it in our daily lives... real world, real time when the currency becomes unstable due to factors both predictable such as the end of peak oil, the wave of Automation taking jobs ( resulting in) the dismantling of capital structure. Than less predictable elements like Human action and motivation ( which Keynesian economics readily dismisses). Because the currency does not represent the amount of resources available, or the amount of resources consumed or even the amount of productivity in the labor force, it cannot be used as an effective ability to measure economic activity in the system to any reasonable effect. In today's world, such a currency can be nothing but abusive of its host nation and corrupt for its own institutional stability. The 21st century world needs a system which is an effective way of accounting for-and managing of global resource availability,consumption,effectiveness and efficiency of resource use and so on. None of which is offered by the Keynesian economic system designed in a Century of growth. V. GDP.Here is a scenario for you.Say you have $500.00 in the bank. Tomorrow, you need to replace a tire, -120. Than your daughter gets sick-you have a co-pay -80... you pay your power bill, -180, you're total remaining balance is $120. This is basic, how ever GDP does not subtract, it ads these numbers together. If you attempted to do this in your basic accounting you'd be broke in no time. G.D.P views expense as a positive, thus the Broken glass fallacy arises. ' so long as money is spent who care who spends it' But this is a once more dark approach but importantly it is a flawed approach for over all economic well being. G.D.P is a good measurement if you want a paper economy... if you want a economy that favors its financial sector over other industries, for this the GDP. is an all important indicator of financial services. A paper economy doesn't last...If you want an economy that serves its people, a good first step might be to consider a economic barometer such as the Genuine Progress Indicator (GPI) http://en.wikipedia.org..., to summarize simply : The expense you encour at a doctors office is a net positive to the economy. Its a neutral transaction that creates no additional wealth. This too strikes at the heart of the Circular flow theory of Keynesian Economics.