Greetings,
Thankyou for making this excellent contribution. We all would equally be in trouble and as rightly pointed out in the video, we can only educate eachother. Financial sustainability remains largely a group effort rather than planned in isolation.
Here's a part from an article on the same. Hope you would like it.
"Japan is currently preoccupied with overcoming the consequences of the tsunami and earthquake, but it also will soon have to face the reality that, due to decades of budget deficits, it has the largest government debt as a percentage of GDP of any country – twice that of the US.
In contrast China in 2008 launched the world's largest state stimulus package to counter the international financial crisis. But it is not running any substantial budget deficit - this year it will only be around two per cent of GDP. But China has enjoyed rapid economic growth.
It has been claimed that China is applying ‘Keynesianism’, but if budget deficits were the key issue defining such policies then China is clearly not pursuing ‘Keynesianism’ at all.
Actually, the core of Keynes’ analysis did not lie in advocating budget deficits, and in some ways China has a policy which more corresponds to his views than that pursued in the US and Europe. This is is briefly outlined below. But before dealing with this it is illuminating to contrast the nature of the economic policies pursued by the US and Europe in the last three years on the one hand, and by China on the other, and to analyse why the latter was able to launch such a large stimulus package without a significant budget deficit."
source:
Key Trends in the World Economy
Read a cover story by BBC
Keynes v Hayek: Two economic giants go head to head. Here's a must watch video on
"Fear the Boom and Bust" a Hayek vs. Keynes Rap Anthem
I loved both of them !