Slide #4 - Pinocchio nose (One falsehood leads to another and another and another)
Keynesian and monetarist economics are based on a falsehood, namely that unpleasant adjustments in economics can be avoided if government will simply print enough money and/or spend enough money. The problem is that healthy albeit painful economic adjustments are never allowed to return markets to their natural equilibrium. Rather, one falsehood leads to another slightly bigger falsehood, which leads to still a bigger falsehood until, as with Pinocchio's nose, imbalances in the economy become so great that they can no longer be denied, at which point the system breaks down.