No argument that spending would help, he constantly fails to show where the money would come from though. 30+ years of loose fiscal policy has bled the coffers dry, particularly the past 10 years, the Chinese cannot be expected to finance it, the Yanks don’t have savings, and Europe is beyond unbalanced, the piper has run out of tunes.
Krugmans fallacy is that he believes that credit expansion is the same thing as creating wealth. He has a religious devotion to Keynesianism that borrowing and printing money and policies of spending for the sake of spending will pull the country out of a recession. Well duh, how did we get to this stage in the first place?
Right. Let’s borrow money from our kids to buy things we don’t need. Krugman is right up there with Greenspan when it comes to economic ineptitude.
I wouldn’t be surprised if Krugman is correct about a depression coming down the tracks. He may also be correct about the need for the governments to spend more but I believe that would have to happen through the printing of more money which would undermine the value of those who have saved. A real kick in the teeth if you have been rational with you money, but possibly the only way to undo the damage which has been done.
expanding credit prick…lets keep trying the same thing and see do we get a different result…
Stupidity beyond belief.
Should have, could have taken our medicine but we didnt and still refuse to.
bah wah wah Stooge…
Denial Denial we can still borrow our way out of this and we are on the path to recovery…
But printing more money will only delay it. We have to face up to it, allow the recession/depression to happen and clear the system out.
Printing money reduces the value of the debts held by the banks / pension funds etc so it moves the burden from one person to the next. There are some savers in this country who would be prime targets to be hit using a measure like this.
Its not credit expansion, its fiddling with the currency value in order to shift the burden from those who borrowed (and now can’t / won’t pay) to those with savings.
Just to clarify, I do not support or advocate this measure, I believe in the free market, i.e. the brutally free market, those who gambled and lost, should pay the price. If you can’t afford the repayments on your home, vacate and sell it.
+1 The problem is those who gambled and lost are running the country in our case so they decide who to for payment.
I don’t have a problem with the notion of spending on worthwhile things like upgrading infrastructure but if it’s spending to buy useless shit we don’t need, then yeah we have a problem.
Niall Ferguson: If The Obama Administration Listens To Paul Krugman It Would Lead To An Imminent Debt Crisis -> zerohedge.com/article/niall- … -debt-cris
This is a very nuanced debate but I find the wholsesale dismissal of Krugman here distrubing.
The point that Krugman has consistently made is that contrary to what Ferguson and other defecit hawks are saying the bond markets are not spooked by America’s defecit. They are quite happy to fund America’s stimulus spending.
And those of you who worry more about their savings being eroded by higher inflation then mass unemployment are frankly selfish short sighted bastards in my view.
Out of interest… did you have the same view of those who spent the excess credit available over the past number of years?
I don’t mind being called selfish - no one else is going to look out for my interests, are they?
When all those builders, electricians and carpenters were splashing the cash through-out the boom years, I’m sure they weren’t selfish. Charging as much as they could get away with, jacking up wage rates and promoting the general ripe off culture.
There will be more jobs, just not at the exhorbitant wages there used to.
Who, me or them?
its gonna happen. period. the MSM is not reporting it but on the ground things are fucked. Poland got a 20 billion bailout from the IMF the other day. The spanish cajas are fucked. State workers in Cali have been put on min wage. I could go on. The EU is failing to ‘sterilise’ its new debt issuance. The G20 talk was just that; talk. They have to put on a brave face to the sheeple, while sereptitiously doing it anyway. I wouldn’t be surprised if Prechter is being used as a tool to get people to get out of stocks and buy government debt (he did have enough sway to move markets in his prime). Otherwise I’d be very surprised on that story being reported in the MSM. So they will go after savers money directly first by ‘consuming’ it (i.e. through this stock market crash they’re staging) and then spit them out with QE 2.0 when it becomes more politically tolerable. Masters of their trade
You seem to either mis-understand or don’t want to understand what we are saying.
Loose fiscal policies over the last 40 years has caused this mess, the money cupboard is empty. The only way the present stimulus happened was by printing more money and/or borrowing more money, and it simply does’nt work.
To say that most of us don’t care about the unemployed is frankly bollocks, unemployment will start reducing when we get our house in order, and can create sustainable jobs, so that people can work and build lives for themselves and the ones they love. Personally, I as a parent, have a duty of care to my children,and their futures… or should I take out the money and spend it, leaving them without just so that someone else can have a job.
The old system simply does’nt work and is proven so, its time for a new more inclusive one.