This analysis is makes no sense whatsoever. There is no such thing as a “liquidity trap” or a “demand deficiency”. Those are Keynesian figments of the imagination. We personally know people in Europe who want to buy a big yacht, their own jet plane and their own island. They are evidently anything but “demand deficient”.
Their problem is only that they have not enough to offer in exchange. This is however not a question of there being “too little money”. As the chart below shows, there is now more money in the euro area than ever before and the money supply in fact continues to grow by leaps and bounds current y/y growth rate: 6.5% and rising.
And to be pedantic about it, Peter Kassig was not, in law, Abdul-Rahman Kassig. He would not have been recognized by any government agency anywhere in the Republic of Paperwork under that name – not by the DMV, not by the Social Security Administration, not by the TSA, not by the Obamacare website. So why is the head of the US government recognizing Mr Kassig by a name none of his minions would? Obama’s court eunuchs at The New York Times explained it this way:
“We are changing these outrageous and archaic laws to give people the freedom to make the most of their assets.
The “father of Obamacare,” as he was known in his salad days, inadvertently acquitted nearly half of us with his reference to “the stupidity of the American voter.” The professor’s condescending comments can only apply to those people who actually believed the empty promises our President made on behalf of his health care “reform” law. A large plurality of the voters always knew that Obama, his congressional accomplices, and creepy little hirelings like Jonathan Gruber were lying to us.