It is true that we cannot depend on government alone to create jobs or long-term growth, but at this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe. Only government can break the vicious cycles that are crippling our economy—where a lack of spending leads to lost jobs which leads to even less spending; where an inability to lend and borrow stops growth and leads to even less credit.

“Only government” – this is the socialists’ mantra that we hear all too often these days. This time it is the American president-elect Obama speaking just a few days ago.

Good luck to all my Americans friends – you’re going to need it!

Bad things are happening on the markets, as everybody knows. One can read (and view talks) about all kinds or problems in the US economy, including imminent predicted collapse of the US dollar and some grim political theories behind it.

Putting the political dimension aside those predictions seem to be based on solid economical theories. In fact, opponents of the Keynesian economy have predicted exactly this kind of thing to happen for years. Just no one believed it will really happen, because said opponents (Hayek, Friedman, von Mises) have been saying that for such a long time people got used to it. But maybe the mechanisms involved required a long time to produce results we are about to see.

And here comes the startling analogy that occurred to me today: same thing happened with “real communism” in the Soviet Union – no one really believed it can fall apart within our lifetime, especially leading sovietologists. May it be so that Western-style socialism will collapse like communism – just a few decades later, because it is – after all – more efficient then communism?