Didn't you read Roubini's warning of the consequences of a prolonged period of zero interest rates? Another massive asset bubble just waiting to burst...The Austrian economists would also argue vehemently against our current wildly expansionary monetary and fiscal policies. I agree with them on the monetary issue while disagreeing on the fiscal issue. Being fundamentalist libertarians, the Austrians do not want ANY government involvement in the economy...at all.

Sovereign: It "hit me" last night that all Keynesian economics boils down to is that money has to be printed up during slumps.

LeRoy: Keynes actually had a strong preference for activist FISCAL policy during economic slumps. He would have the government spending more on infrastructure projects....and perhaps on R&D, though Keynes did not really have a modern understanding of the importance of research and development. He would not have wanted the Fed to slam on the brakes during a massive slump like this, but I get little from reading his stuff that he would have wanted them to open the floodgates, either. But I agree with you that this slump "will not yield to mere printing". In fact, I think our current monetary policies are creating a massive carry trade in the US dollar that will ultimately result in a rapid fall in the value of the dollar, with potentially catastrophic consequences for not just the U.S. economy, but the world economy as a whole. That was the point of Roubini's warning.