Paul Krugman "Inflation Scare"

[Raz]

Re: Paul Krugman "Inflation Scare"

What Krugman basically is saying is that the economic equivalent of the perpetual motion machine can really exist. That we can spend more than we take in forever with no lasting consequences. You don't need to be an award winning Ivy league economist to sense something completely out of touch with common sense is going on here. :rolleyes:

I love it when people use historical examples out of context. Sure, we had debt exceeding 120% of GDP after WWII and paid it off. Of course what he fails to mention is the massive difference in the size of government between now and then. Or the much larger percentage of unproductive members of society we now have. All who must be cared for an nurtured by the nanny state. After WWII it was still possible to pay off the debt. Now the sheer size of our debt and other obligations like SS and medicare means its impossible without inflation. He has to know this.

Then he uses the Japan example. Like they have thrived since?:eek:

Anyone who knows politicians knows that once they turn on the money faucet, the handle always seems to break off in the on position. The US is going to eat itself with all this spending, and there aren't enough taxpayers to give us a chance in hell of taxing our way out of it. But just wait. They'll try anyway, and end up running the productive segment of our society offshore.

I had planned on posting a comment but after reading 90% of my thoughts in Flintlock's post there seems no need to do so.

Krugman is a full-time Leftist and a part-time demagogue.
My interest in his politico-economic opinions has been dropping for years.

[metalman]

Re: Paul Krugman "Inflation Scare"

after reading it, came away with one question... 'how much was paul krugman?' how much did the oligarchs pay him to spew this political garbage?

answer... $1.42 million
AFP: US economist Paul Krugman wins Nobel Economics Prize

Oct 13, 2008 ... US economist Paul Krugman wins Nobel Economics Prize ... million Swedish kronor (1.42 million dollars, 1.02 million euros) at a formal prize ...

[metalman]

Re: Paul Krugman "Inflation Scare"

Krugman is a full-time Leftist and a part-time demagogue.
My interest in his politico-economic opinions has been dropping for years.

the oligarchs own economists on 'both sides' of the non-argument... left & right.

the goal is to keep the issue framed as socialism vs capitalism and not the people and their half dead republic vs the oligarchs.

[Slimprofits]

Re: Paul Krugman "Inflation Scare"

Sure, we had debt exceeding 120% of GDP after WWII and paid it off.

For the last couple of days I've wondered why so many liberal J6P have been recently mentioning the post- WWII period.

It's a political talking point from high on up.

[BadJuju]

Re: Paul Krugman "Inflation Scare"

Oct 13, 2008 ... US economist Paul Krugman wins Nobel Economics Prize ... million Swedish kronor (1.42 million dollars, 1.02 million euros) at a formal prize ...

Amazing. :eek: I feel like I am viewing the world from the outside-in. And as an observer, I cannot help but be amazed by the rapidity of my discoveries of corruption and fraud within even the most mundane aspects of the world.

Krugman, for all intents and purposes, is a mouthpiece of the government. He serves only to spew propagandist tripe to induce people into accepting the tired dogma of government primacy. He may occasionally bark at the actions of this administration, but certainly never bites.

[BadJuju]

Re: Paul Krugman "Inflation Scare"

Any thoughts?

Nice post, coolhand!

[metalman]

Re: Paul Krugman "Inflation Scare"

Amazing. :eek: I feel like I am viewing the world from the outside-in. And as an observer, I cannot help but be amazed by the rapidity of my discoveries of corruption and fraud within even the most mundane aspects of the world.

Krugman, for all intents and purposes, is a mouthpiece of the government. He serves only to spew propagandist tripe to induce people into accepting the tired dogma of government primacy. He may occasionally bark at the actions of this administration, but certainly never bites.

compare his accomplishments to those of previous winners of the nobel in economics. the scent of payoff is overwhelming.

[BadJuju]

Re: Paul Krugman "Inflation Scare"

compare his accomplishments to those of previous winners of the nobel in economics. the scent of payoff is overwhelming.

I find myself musing over what goes on in Krugman's mind. What is he thinking about, aside from dollar signs, when he makes these flawed pronouncements? Is there not even a shred of dignity or compassion within that mind of his?

This could obviously be extended to most people at the heart and fringe of this crisis. I mean, at what point do you stop and say, "I am endangering the livelihoods of millions of people here for petty gains. And what little I gain will only be lost as the world is reduced to chaos."

[metalman]

Re: Paul Krugman "Inflation Scare"

I find myself musing over what goes on in Krugman's mind. What is he thinking about, aside from dollar signs, when he makes these flawed pronouncements? Is there not even a shred of dignity or compassion within that mind of his?

This could obviously be extended to most people at the heart and fringe of this crisis. I mean, at what point do you stop and say, "I am endangering the livelihoods of millions of people here for petty gains. And what little I gain will only be lost as the world is reduced to chaos."

obviously, there's the $1.43 mil and then the other ops that go with it... and maybe they also have something on him... he likes little boys or lied about his past. that's how these regimes operate.

[mcgurme]

Re: Paul Krugman "Inflation Scare"

One thing that seems to have escaped all the mainstream economists about debt and deflation versus inflation, is a simple hypothesis:

1. Net export nations seem to suffer deflation during a strong recession like this. Witness USA in the great depression and Japan in the 90's.

2. Net import nations seem to suffer inflation during a strong recession like this, due to the deflation being exported from the export nations

Hey, I'm not an expert in this stuff, but can anyone think of a counter example to the above?

It seems Krugman is ignoring these simple observations by referring to examples of USA near WWII and more recently Japan, since both of those examples refer to a net exporter of goods/commodities.

We are not anything close to being a net exporter now.

What Krugman basically is saying is that the economic equivalent of the perpetual motion machine can really exist. That we can spend more than we take in forever with no lasting consequences. You don't need to be an award winning Ivy league economist to sense something completely out of touch with common sense is going on here. :rolleyes:

I love it when people use historical examples out of context. Sure, we had debt exceeding 120% of GDP after WWII and paid it off. Of course what he fails to mention is the massive difference in the size of government between now and then. Or the much larger percentage of unproductive members of society we now have. All who must be cared for an nurtured by the nanny state. After WWII it was still possible to pay off the debt. Now the sheer size of our debt and other obligations like SS and medicare means its impossible without inflation. He has to know this.

Then he uses the Japan example. Like they have thrived since?:eek:

Anyone who knows politicians knows that once they turn on the money faucet, the handle always seems to break off in the on position. The US is going to eat itself with all this spending, and there aren't enough taxpayers to give us a chance in hell of taxing our way out of it. But just wait. They'll try anyway, and end up running the productive segment of our society offshore.

[Thailandnotes]

Re: Paul Krugman "Inflation Scare"

We are the world's greatest debtor; our consumers have high levels of debt. Gov't tax receipts are falling sharply; we have massive & growing (& politically untouchable) "off-balance sheet liabilities" (Medicare & Soc Security), & our biggest export markets' economies are in as bad of shape or worse than ours (esp Europe). Our biggest asset seems to be the reserve status of the USD, & there are various signs that reserve status seems to be under early stages of attack.

People seem to think that there will be some big flashing light warning everyone that hyperinflation is coming, & that everyone will have time to prepare. History shows that is just not true.

Any thoughts?

Being a "pop-historian" and trying to figure out how many people sensed the tidal wave coming makes for good reading. My favorite artist/cartoonist is Saul Steinberg who fled Europe to Santo Domingo, Republica Dominicana, and finally gained entry to the US after selling a few drawings to the New Yorker. I have the sense that for every person like Steinberg who knew and got out, there were 500 who also knew but couldn't muster the move.

I see plenty of flashing lights. Most everyone reading here sees them too. But even so, there's lots of confusion about what to do.

My parents are in the 80's. I've repeatedly joked that I might have to walk home from Asia.

[pianodoctor]

Re: Paul Krugman "Inflation Scare"

Your....prime....directive....is....must....dampen ....inflation....expectations.

[jtabeb]

Re: Paul Krugman "Inflation Scare"

obviously, there's the $1.43 mil and then the other ops that go with it... and maybe they also have something on him... he likes little boys or lied about his past. that's how these regimes operate.

I think that's called "Ad Hominum", is that correct?:mad:

[D-Mack]

Re: Paul Krugman "Inflation Scare"

I think that's called "Ad Hominum", is that correct?:mad:

I think it's "hominem" not "hominum"



Well, the peace price has to be joke with Kissinger and Gore getting it.

Economics with those LTCM guys can't be much better.

[metalman]

Re: Paul Krugman "Inflation Scare"

I've read a bit on the Weimar Republic, & what most people don't realize when I talk about it is how fast the rate of inflation accelerated in Germany. They went from sub-10% inflation to 1,000%+ inflation in less than a year. People seem to think that there will be some big flashing light warning everyone that hyperinflation is coming, & that everyone will have time to prepare. History shows that is just not true.

a theme here for years... gold as insurance. maybe no hyperinflation... but do you really want to risk your life on that bet?

the usa's moved step by step toward hyperinflation since 1971. almost went down in 1979.