Keynes Post War Public Credit To Be Mortgage Backed

INTERNATIONAL UNIVERSITY SOCIETY
Reading Course and Biographical Studies
- Section Two
Transcript of a speech on BBC radio 1942 – How Much
Finance Matters – by John Maynard Keynes, recognised as
one of histories leading authorities on the intricacies of
international finance.
Pg 185 – 86;
Let me begin by telling you how I tried to answer an eminent architect who pushed on one side all the grandiose plans to rebuild London with the phrase “Where’s the money to come from?” “The money?” I said. But surely, Sir John , you don’t build houses with money? Do you mean that there won’t be enough bricks and mortar and steel and cement?” “Oh no” he replied; “of course there will be plenty of that.” “Do you mean” I went on “that there won’t be enough labour? For what will the builders be doing if if they are not building houses?” “Oh no, that’s all right,” he agreed.
“Then there is only one conclusion. You must be meaning, Sir John, that there won’t be enough architects.”
But there I was trespassing on the boundaries of politeness. So I hurried to add: “Well, if there are bricks and mortar and steel and concrete and labour and architects, why not assemble all this good material into houses?” But he was, I fear, quite unconvinced. “What I want to know” he repeated ” is where the money is coming from.” To answer that would have got him and me into deeper water than I cared for, so I replied rather shabbily: “The same place it is coming from now.” He might of countered, but he didn’t: “Of course I know that money is not the slightest use whatever. But, all the same, my dear sir, you will find it a devil of a business not to have any.”
Pg 187 – 88
Now let me turn back to the other interpretation of what my friend may of had at the back of his head – the adequacy of our resources in general, even assuming good employment, to allow us to devote a large body of labour to capital works which would bring in no immediate return. Here is a real problem, fundamental yet essentially simple, which it is important for all of us to try to understand. The first task is to make sure that there is enough demand to provide employment for everyone. The second task is to prevent a demand in excess of the physical possibilities of supply, which is the proper meaning of inflation. For the physical possibilities of supply are very far from unlimited.
END ————————-

Did the Monetarists adopt only the parts of Keynes thesis that suited their plan of economic dominance and then set out to make him a scapegoat?:

“Poor old Lord Keynes. The world’s press has spent the past week blackening his name. Not intentionally: most of the dunderheads reporting the G20 summit which took place over the weekend really do believe that he proposed and founded the International Monetary Fund. It’s one of those stories that passes unchecked from one journalist to another.

The truth is more interesting. At the Bretton Woods conference in 1944, John Maynard Keynes put forward a much better idea. After it was thrown out, Geoffrey Crowther – then the editor of the Economist magazine – warned that “Lord Keynes was right … the world will bitterly regret the fact that his arguments were rejected.”(1) But the world does not regret it, for almost everyone – the Economist included – has forgotten what he proposed.”        http://www.monbiot.com/archives/2008/11/18/clearing-up-this-mess/

More indepth research:   Keynes argued from very early on that the gold standard was an inappropriate mechanism for economies based on bank credit; as he later put it: “The confusion lay in the futile attempt to ignore the existence of bank money and consequently the interrelationships of money and bank credit, and to make representative money behave exactly as though it were commodity money”

http://sticerd.lse.ac.uk/textonly/events/special/lionelrobbins/papers/Tily.pdf