Genesis 47:13-26

Now there was no bread in all the land; for the famine was very severe, so that the land of Egypt and the land of Canaan languished because of the famine. And Joseph gathered up all the money that was found in the land of Egypt and in the land of Canaan, for the grain which they bought; and Joseph brought the money into Pharaoh’s house. (1)

So when the money failed in the land of Egypt and in the land of Canaan, all the Egyptians came to Joseph and said, “Give us bread, for why should we die in your presence? For the money has failed.”

Then Joseph said, “Give your livestock, and I will give you bread for your livestock, if the money is gone.” So they brought their livestock to Joseph, and Joseph gave them bread in exchange for the horses, the flocks, the cattle of the herds, and for the donkeys. Thus he fed them with bread in exchange for all their livestock that year. (2)

When that year had ended, they came to him the next year and said to him, “We will not hide from my lord that our money is gone; my lord also has our herds of livestock. There is nothing left in the sight of my lord but our bodies and our lands. Why should we die before your eyes, both we and our land? Buy us and our land for bread, and we and our land will be servants of Pharaoh; give us seed, that we may live and not die, that the land may not be desolate.” (3)

Then Joseph bought all the land of Egypt for Pharaoh; for every man of the Egyptians sold his field, because the famine was severe upon them. So the land became Pharaoh’s. And as for the people, he moved them into the cities, from one end of the borders of Egypt to the other end. (4) Only the land of the priests he did not buy; for the priests had rations allotted to them by Pharaoh, and they ate their rations which Pharaoh gave them; therefore they did not sell their lands.

Then Joseph said to the people, “Indeed I have bought you and your land this day for Pharaoh. (5) Look, here is seed for you, and you shall sow the land. And it shall come to pass in the harvest that you shall give one-fifth to Pharaoh. Four-fifths shall be your own, as seed for the field and for your food, for those of your households and as food for your little ones.” (6)

So they said, “You have saved our lives; let us find favor in the sight of my lord, and we will be Pharaoh’s servants.” (7) And Joseph made it a law over the land of Egypt to this day, that Pharaoh should have one-fifth, except for the land of the priests only, which did not become Pharaoh’s.


1)    Government will consolidate the money supply during bad times.
2)    Government will confiscate personal property during bad times.
3)    Government will confiscate real property during bad times.
4)    Government will order people where to live during bad times.
5)    Government will own you during bad times.
6)    Government will tell you what to do during bad times.
7)    People will become slaves to a dictator during bad times.

Currency Wars, pages 185-187.

In a famous study written just before the start of President Obama’s administration, two of Obama’s advisers, Christina Romer and Jared Bernstein, looked at the multiplier in connection with the stimulus program. Overall results were hampered by recent challenges in Venezuela, where Colgate generates about 5% of total sales. Colgate has recently dealt with a labor slowdown in the country. In addition, the company warned in February it would take a first-quarter charge of about $120 million because of the recent devaluation of Venezuela's currency.e proposed 2009 stimulus program. Romer and Berstein estimated the multiplier at about 1.54 once the new spending was up and running. This means that for every $100 billion in the Obama spending program, Romer and Berstein expected to increase by $154 billion. Since the entire Obama program ended up at $787 billion, the “extra” output just from doing the stimulus program would amount to $424 billion – the largest free lunch in history. The purpose of this stimulus was to offset the effects of the depression that had begun in late 2007 and to save jobs.

The Obama administration ran U.S. fiscal year deficits of over $1.4 trillion in 2009 and $1.2 trillion in 2010. The administration projected further deficits of $1.6 trillion in 2011 and $1.1 trillion in 2012 – an astounding total of over $5.4 trillion in just four years. In order to justify the $787 billion program of extra stimulus in 2009 with deficits of this magnitude, it was critical to show that America would be worse off without the spending. The evidence for the Keynesian multiplier had to be rock solid.

It did not take long for the evidence to arrive. One month after the Romer and Berstein study, another far more rigorous study of the same spending program was produced by John B. Taylor and John F. Cogan of Stanford University and their colleagues. Central to the results shown by Taylor and Cogan is that all of the multipliers are less than one, meaning that for every dollar of “stimulus” spending, the amount of goods and services produced by the private sector declines. Taylor and Cogan employed a more up-to-date multiplier model that has attracted wider support among economists and uses more realistic assumptions about the projected path of interest rates and expectations of consumers in the face of higher tax burdens in the future. The Taylor and Cogan study put the multiplier effect of the Obama stimulus program at 0.96 in the early stages but showed it falling rapidly to 0.67 by the end of 2009 and to .048 by the end of 2010. Their study showed that, by 2011, for each stimulus dollar spent, private sector output would fall by almost sixty cents. The Obama stimulus program was hurting the private sector and therefore handicapping the private sector’s ability to create jobs.

    The Taylor and Cogan study was not the only study to reach the conclusion that Keynesian multipliers are less than one and that stimulus programs destroy private sector output. John Taylor had reached similar conclusions in a separate 1993 study. Empirical support for Keynesian multipliers of less than one, in certain conditions, was reported in separate studies by Michael Woodford of Columbia University, Robert Barro of Harvard and Michael Kumhof of Stanford, among others. A review of the economic literature shows that the methods used by Romer and Berstein to support the Obama stimulus program were outside the mainstream of economic thought and difficult to support except for ideological reasons.

    Two years after the Romer and Bernstein study, the economic results were in, and they were devastating to their thesis. Romer and Bernstein had estimated total employment at over 137 million by the end of 2010. The actual number was only 130 million. They had estimated GDP would increase 3.7 percent by late 2010; however, it had barely increased at all. They had also estimated that recession unemployment would peak at 8 percent; unfortunately, it peaked at 10.1 percent in October 2009. By every measure the economy performed markedly worse than Romer and Berstein had anticipated using their version of the Keynesian multiplier. From the start, the Obama stimulus was little more than an ideological wish list of favored programs and constituencies dressed up in the academic robes of John Maynard Keynes.

Webmaster note: currency devaluations will lead to company losses, higher unemployment, and the elimination of credit.

Overall results were hampered by recent challenges in Venezuela, where Colgate generates about 5% of total sales. Colgate has recently dealt with a labor slowdown in the country. In addition, the company warned in February it would take a first-quarter charge of about $120 million because of the recent devaluation of Venezuela's currency. The Wall Street Journal, April 25, 2013.

The company said last month collections in Venezuela had improved and all revenue from first-quarter work would be recognized. The March 31 statement came two weeks after Schlumberger said it would temporarily cut activity in the country due to unpaid bills. Schlumberger reported a $92 million pretax charge for currency value loss in Venezuela. Bloomberg News, April 19, 2013.