printAustrians like myself have long been calling this “recession” a depression. My WND colleague Vox Day wrote a book explaining why this economic downturn is a depression—the worst we’ve seen so far because of unprecedented levels of household and government debt. Now Paul Krugman, whose Keynesian voodoo I discussed in “Obama To G-20: Print More Money, Don’t Make It,” has, finally, diagnosed a depression.
This dangerous moron, however, believes depressions are caused by lack of spending—dips in demand must be compensated for by massive state spending, or else. That’s Keynesianism in a nut shell. Of course, be it on the macro or micro level, debt = decline + decay
HERE crazy Krug condemns the “resurgence of hard-money and balanced-budget orthodoxy”:
“…this third depression will be primarily a failure of policy. Around the world — most recently at last weekend’s deeply discouraging G-20 meeting — governments are obsessing about inflation when the real threat is deflation, preaching the need for belt-tightening when the real problem is inadequate spending.”
[SNIP]
Fans of Vox Day: write to our friend and urge him to write-up answers to the interview I sent him weeks back pursuant to reading the copy of “The Return of The Great Depression” he mailed me. Change the questions if you don’t like them, VD, respond to the Krug news; do what you like with my text, just get to it.
Hey, poor Krugman had to compete with “conservative” Russ Douthat’s column on Afghanistan today for the “Stupid Op-Ed Du Jour” Prize!
How can the government be borrowing at 2 Terabucks per year and this is called DEFLATIONARY? How can the money supply be increased and bailouts given to every politically connected deadbeat entity and be called DEFLATIONARY? I surely do not get it.
Debt may be a good idea if you are Henry Ford borrowing to install an assembly line or Hugh Hefner publishing a girlie mag or Tom Edison playing with light bulbs and phonographs. What is the government stimulus being spent on – teacher pensions, agribusiness subsidies, bombs for Afghanistan, jails for dope smokers, manned missions to Mars, Viagra for seniors, college for low-IQ “students”, ACORN-type advocacy groups, art museums…. – so HOW does such “investment” ever get recovered? What sort of economics is that????
Why not solve both deflation AND the energy crisis by printing up money and burning it as fuel?? Hey – paper money is from trees so it is RENEWABLE.
Heck, paper money is even GREEN. Give Krugman a Nobel Prize (ooops, too late!).
If ever he (Krugman) had smarts he’s taken leave of them now. I’ll bet he’s a lot like those mathematicians, brilliant in their twenties, a bore in their thirties, and flirting with lunacy in their forties.