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Paul Krugman Answers Paul Ryan on Debt Crisis: We Can Print Money
CNSNews ^

Posted on 01/31/2013 12:54:24 PM PST by Sub-Driver

Paul Krugman Answers Paul Ryan on Debt Crisis: We Can Print Money January 31, 2013 By Melanie Hunter

(CNSNews.com) – Responding to House Budget Chairman Paul Ryan's warning that if the federal government continues to run annual $1 trillion deficits we will eventually face a debt crisis, liberal economist and New York Times columnist Paul Krugman said Wednesday that that is not a legitimate worry because the U.S. government can always print money and weaken the buying power of the dollar.

Weakening the dollar, Krugman said, would be a good thing.

“The United States is a country that has its own currency--can’t run out of cash because we print the money. If you even try to think what would happen--suppose that investors get down on the United States. Even so, that would weaken the dollar, not send interest rates soaring, and that would be good. That would help our exports,” Krugman said on C-SPAN’s “Newsmakers.”

Krugman was asked whether he thought the U.S. was “in danger of a collapse, a stall, a crisis.”

“No, there’s a whole bunch of reasons why that’s not true. First of all ... that trillion dollar deficit is overwhelmingly the result of a depressed economy, and when the economy’s depressed, it’s good to run a deficit. You don’t want the government to try and balance its budget right now,” Krugman said.

C-SPAN showed a video of former GOP vice presidential candidate Rep. Paul Ryan (R-Wis.), speaking at the National Review Institute in Washington, D.C., on dangers of debt.

(Excerpt) Read more at cnsnews.com ...


TOPICS: Business/Economy; Government; News/Current Events
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I give up.......
1 posted on 01/31/2013 12:54:28 PM PST by Sub-Driver
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To: Sub-Driver

Proving that yet another Nobel Committee has no idea whatsoever.


2 posted on 01/31/2013 12:58:34 PM PST by Uncle Miltie (Of the government, by the government, and for the government.)
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To: Sub-Driver

I don’t blame you. This is exasperating.


3 posted on 01/31/2013 12:58:40 PM PST by andyk (I have sworn...eternal hostility against every form of tyranny over the mind of man.)
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To: Sub-Driver

I thought this was satire, but no, it is real....


4 posted on 01/31/2013 12:58:47 PM PST by central_va ( I won't be reconstructed and I do not give a damn.)
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To: Sub-Driver

“You don’t want the government to try and balance its budget right now,” Krugman said”

Just. Frigging. Amazing.


5 posted on 01/31/2013 12:59:20 PM PST by carriage_hill (AR-10s & AR-15s are the 21st Century's Muskets. The 2nd Amendment is the First Human Right.)
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To: Sub-Driver

Collectivism tends not to attract the most insightful among us.


6 posted on 01/31/2013 1:02:07 PM PST by lurk
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To: Sub-Driver

And there it is.

The middle class shall pay off the taxes taht cant be collected from the rich and that aren’t paid by the poor.

This is why I oppose budgets based on increasing taxes on the wealthy.

They can avoid them which leaves but one class to pay the uncollected expected revenues: the middle class.


7 posted on 01/31/2013 1:02:32 PM PST by NoLibZone (It's time folks. It's time. Posting aint gonna cut it.)
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To: carriage_hill

And we also don’t want to stop Iran from getting a nuke.

That would be crazy.


8 posted on 01/31/2013 1:02:46 PM PST by TurboZamboni (Looting the future to bribe the present)
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To: carriage_hill

Every nation in the world wants to increase its exports.

This will not end well.


9 posted on 01/31/2013 1:03:03 PM PST by cgbg (HLM--"Democracy is the theory that people know what they want, and deserve to get it good and hard.")
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To: Uncle Miltie

Krugman needs a “Degree-ectomy” as whomever educated him is guilty as sin for teaching him wrong...

http://www.youtube.com/watch?v=d696t3yALAY

Krugman is Wimp Lo, I think his teachers trained him completely wrong as a joke....


10 posted on 01/31/2013 1:05:40 PM PST by GraceG
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To: Sub-Driver
Weakening the dollar, Krugman said, would be a good thing.

We can spend more money and increase the deficit and increase the money supply to finance the deficit by building pyramids. If that doesn't work, we can start blowing up buildings and then rebuilding them. We can flood whole cities.It all makes perfect sense to libtards.

11 posted on 01/31/2013 1:05:47 PM PST by mjp ((pro-{God, reality, reason, egoism, individualism, natural rights, limited government, capitalism}))
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To: Sub-Driver

Yes - you CAN print money.

Which will first be fed through bond-buying of the FED and their Wall Street and money-center banks, increasing their profits and bonuses (ie. making the politically-connected rich even richer)

Meanwhile you will increase the costs of all items, particularly every-day commodities for the middle class and poor. Wages will not rise with inflation, thus making the middle-class and poor, poorer.

You will also destroy the savings of workers and the elderly with artificially low interest rates. Again, making the poor even poorer.

You will also promote the welfare of Gov’t, its employees, and those who can successfuly lobby government - those who will be next in line for this money being spent, again to the detriment of everyone else.

This is WHY leaders like Thomas Jefferson and Andrew Jackson insisted on “hard money.” Fiat money can be printed at will by politicians, to benefit the governing and crony-capitalist class.

This is why Conservatives must insist on serious constraints on the Federal Reserve, or eliminating it altogether.


12 posted on 01/31/2013 1:06:44 PM PST by PGR88
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To: Sub-Driver

You have to be impressed. I am. Amazed, really.


13 posted on 01/31/2013 1:07:19 PM PST by St_Thomas_Aquinas
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To: Sub-Driver

Wow, we can just spend 1.3 trillion dollars in imaginary money every year, presto chango, with no repercussions. Whoever said there’s no free lunch?


14 posted on 01/31/2013 1:07:26 PM PST by circlecity
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To: NoLibZone
The middle class shall pay off the taxes taht cant be collected from the rich and that aren’t paid by the poor.

I wish they'd just get on with it. I've been banking on inflation paying my mortgage for 15 years, now.

And I guess I don't have to remind you not to follow my investment advice.

15 posted on 01/31/2013 1:09:07 PM PST by St_Thomas_Aquinas
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To: Uncle Miltie

And an Ivy League “education” is as worthless as a Nobel too.

Can you imagine spending $60k/year to have your child taught by this idiot?


16 posted on 01/31/2013 1:09:26 PM PST by Tea Party Terrorist (Those who work for a living are now outnumbered by those who vote for a living.)
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To: Sub-Driver
Sure you can print all the money you want.

Worked great for Zimbabwe didn't it?

That'll get you a loaf of bread and a cup of coffee.

17 posted on 01/31/2013 1:10:41 PM PST by Dead Corpse (I will not comply.)
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To: cgbg

Since Paul Krugman is the intellectual inspiration of Obama’s economic policy, he ought to release his medical records. His psychiatric history and current medications are matters of national importance.


18 posted on 01/31/2013 1:11:11 PM PST by allendale
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To: Sub-Driver

Paul Krugman is a freaking moron. It continues to amaze me that people still listen to anything that falls out of his mouth. He has gone beyond ludicrous.


19 posted on 01/31/2013 1:11:17 PM PST by ronnyquest (I spent 20 years in the Army fighting the enemies of freedom only to see marxism elected at home.)
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To: Sub-Driver

so they ADMIT they’re weakening the dollar...
that it’s a good thing...
and will continue into the foreseeable future.

that tells me one thing... buy anything that cannot be diluted

gold.

it’ll just be worth more in the future.

it also tells me to get long, fixed loans... as the value will diminish as time goes on (meaning it’ll take less time to make the same amount to pay the loan)


20 posted on 01/31/2013 1:11:29 PM PST by sten (fighting tyranny never goes out of style)
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To: Sub-Driver

If it’s that simple, can I print out a few $20s, too?


21 posted on 01/31/2013 1:12:29 PM PST by bgill (We've passed the point of no return. Welcome to Al Amerika.)
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To: Sub-Driver
Even so, that would weaken the dollar, not send interest rates soaring, and that would be good. That would help our exports,”

And it would increase the cost of our imports, including oil. We are running a trade deficit now.

22 posted on 01/31/2013 1:13:39 PM PST by kabar
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To: Sub-Driver

Bye-bye America; the lunatics are running the asylum now.........


23 posted on 01/31/2013 1:16:04 PM PST by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: Sub-Driver

This is who Danny Glover wanted for Sec. of Treasury. A real brain trust liberals are.


24 posted on 01/31/2013 1:16:33 PM PST by machogirl (First they came for my tagline)
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To: Sub-Driver

Krugman is a skank!

Back during Bush’s years Krugman said that Bush’s billion dollar deficits were going to collapse the USA. The guy is a freakin’ skank.

“Krugman calls on Bush to reign in the red”
Broadcast: 11/03/2004
http://www.abc.net.au/lateline/content/2004/s1064193.htm

PROFESSOR PAUL KRUGMAN, PRINCETON ECONOMIST: Well, basically we have a world-class budget deficit not just as in absolute terms of course - it’s the biggest budget deficit in the history of the world - but it’s a budget deficit that as a share of GDP is right up there.

It’s comparable to the worst we’ve ever seen in this country.

It’s biggest than Argentina in 2001.

Which is not cyclical, there’s only a little bit that’s because the economy is depressed.

Mostly it’s because, fundamentally, the Government isn’t taking in enough money to pay for the programs and we have no strategy of dealing with it.

So, if you take a look, the only thing that sustains the US right now is the fact that people say, “Well America’s a mature, advanced country and mature, advanced countries always, you know, get their financial house in order,” but there’s not a hint that that’s on the political horizon, so I think we’re looking for a collapse of confidence some time in the not-too-distant future.


25 posted on 01/31/2013 1:17:42 PM PST by avacado (he)
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To: sten

A future weakening of the dollar means you should buy and store now as many non-perishable items as you can afford and know you will use for many years.

That would include clothes, furniture, hobby items, etc.

This also protects you against future increases in sales taxes and any future value added taxes.


26 posted on 01/31/2013 1:19:31 PM PST by cgbg (HLM--"Democracy is the theory that people know what they want, and deserve to get it good and hard.")
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To: Dead Corpse
That bill is from the second series so it was only worth 10 third series Zimbabwe dollar, which was famous for the 100 trillion dollar bill.

So my bill is 10,000,000,000,000 times better than yours.

27 posted on 01/31/2013 1:23:27 PM PST by KarlInOhio (Choose one: the yellow and black flag of the Tea Party or the white flag of the Republican Party.)
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To: Sub-Driver
Printing money worked real well for Weimar and Zimbabwe.
It's a proven technique to stoke inflation thus destroying the value of citizens' personal savings.
Moreover a Cloward-Piven national collapse is more easily achievable by the unfettered printing of fiat money.
28 posted on 01/31/2013 1:30:05 PM PST by Amagi (Obama is never so animated as when he is assaulting the Constitution.)
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To: Sub-Driver

I am afraid I am stupid.

If Krugman is right why are we paying taxes?

The Government can just print what they need and leave us alone.


29 posted on 01/31/2013 1:30:37 PM PST by Venturer
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To: bgill
As I predicted years ago. THe idiots in charge plan to pay off national obligations with worthless dollars.

When the lenders catch on (and I'm surpised they haven't already) the spigot of real money is going to run dry.

30 posted on 01/31/2013 1:31:01 PM PST by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both)
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To: PGR88

Very cogent synopsis. Thanks.


31 posted on 01/31/2013 1:33:54 PM PST by ColoCdn (Neco eos omnes, Deus suos agnoset)
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To: TurboZamboni

Just a wild-assed guess, but I think they already have one. Thinking that they’re just working on a home-grown delivery system. But then I wonder why the Chi-Comms or NORKS haven’t supplied one of theirs. Who knows for sure?


32 posted on 01/31/2013 1:36:33 PM PST by carriage_hill (AR-10s & AR-15s are the 21st Century's Muskets. The 2nd Amendment is the First Human Right.)
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To: cgbg

Sure thing; we can buy all they can ship in to us. Crank-up the $-presses. That Krugman creep makes my skin crawl; all of the delusional, marxist lib-dem trash do.


33 posted on 01/31/2013 1:40:32 PM PST by carriage_hill (AR-10s & AR-15s are the 21st Century's Muskets. The 2nd Amendment is the First Human Right.)
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To: cgbg

Afterthought: if you or I ran a business like those morons run the corrupt, criminal US Govt, we’d have crashed and burned, long ago.


34 posted on 01/31/2013 1:43:13 PM PST by carriage_hill (AR-10s & AR-15s are the 21st Century's Muskets. The 2nd Amendment is the First Human Right.)
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To: Sub-Driver

In other words, we can tax people by making their money worth less. Or worthless.


35 posted on 01/31/2013 1:46:10 PM PST by Little Ray (Waiting for the return of the Gods of the Copybook Headings.)
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To: PGR88

Wow... so why didn’t the interviewer call this guy what he is - a damned thief.

“Printing money” is simply stealing from the savings of the elderly.


36 posted on 01/31/2013 1:48:24 PM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: cgbg

pricing on such items can deflate due to reduced demand... which is why I’d consider gold and when the time comes, exchange gold for dollars at that time, and buy the item... negating the inflation


37 posted on 01/31/2013 1:50:35 PM PST by sten (fighting tyranny never goes out of style)
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To: Sub-Driver

So, which Paul Krugman idea does everyone like better:

A. Minting one trillion dollar platinum coins.

OR

B. Printing trillions of dollars of paper currency with no intrinsic value.

In my humble opinion they are equally brilliant. The choice is difficult.


38 posted on 01/31/2013 1:54:13 PM PST by Belteshazzar (We are not justified by our works but by faith - De Jacob et vita beata 2 +Ambrose of Milan)
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To: Belteshazzar

Oh, I also think the Zimbabwean alternative of issuing currency with an expiration date is another brilliant idea. I hope Krugman will give this alternative the same careful thought as the other two.


39 posted on 01/31/2013 1:57:13 PM PST by Belteshazzar (We are not justified by our works but by faith - De Jacob et vita beata 2 +Ambrose of Milan)
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To: MrB
“Printing money” is simply stealing from the savings of the elderly.

And the wages of every working-person in the country.

40 posted on 01/31/2013 1:59:45 PM PST by PGR88
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To: PGR88

Part of a quote from Keynes:
“Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose. “

There’s no indication within the whole quote as to whether he thought this was a “good thing” or a “bad thing” though.


41 posted on 01/31/2013 2:06:05 PM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: central_va

When it comes to economics, I didn’t think it possible to find someone dumber than Larry Summers. Paul Krugman has proved me wrong.


42 posted on 01/31/2013 2:06:25 PM PST by Hoodat ("As for God, His way is perfect" - Psalm 18:30)
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To: NoLibZone

You can pay me now or pay me later, so sayeth Big Government. I’m so glad the young that voted for our current catastrophe will be the ones paying for this. I am making other arrangements, bags packed behind the door, and passport in hand. It may not be greener pastures on the other side but I simply cannot bear to watch this deterioration first hand.


43 posted on 01/31/2013 2:13:34 PM PST by griswold3 (Big Government does not tolerate rivals.)
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To: Sub-Driver; cripplecreek
How about Coolidge advice instead, Krugman you asshat.

http://www.youtube.com/watch?v=5puwTrLRhmw

44 posted on 01/31/2013 2:26:41 PM PST by KC_Lion (Build the America you want to live in at your address, and keep looking up.-Sarah Palin)
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To: Sub-Driver

Paul Krugman is a highly regarded “economist”. The same people who admire Krugman are the same people that helped reelect the radical, collectivist president for a second term. For them the best economy is centrally planned by an all-powerful, imperial federal government.


45 posted on 01/31/2013 2:30:32 PM PST by windsorknot
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To: Sub-Driver
"can’t run out of cash because we print the money

Yipee! Free money, what could possibly go wrong? /s

46 posted on 01/31/2013 2:35:13 PM PST by jpsb
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To: Sub-Driver
...not a legitimate worry because the U.S. government can always print money and weaken the buying power of the dollar

Krugman may be onto something here.

If the government can print all the money it wishes or needs, then, logically, it can print all the money necessary to pay off the national debt, and the country can start from scratch. Then, all of the deficits and national debts, won't ever be a worry again.

Where are those trillion dollar coins? We need them now, and as many as necessary.
47 posted on 01/31/2013 2:38:44 PM PST by adorno (Y)
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To: Venturer
If Krugman is right why are we paying taxes?

Exactly. If they are willing to do this, and they clearly are, then there is no reason to levy taxes. Print the money you need to operate government. The cost will be defused across the entire dollar-using world.

48 posted on 01/31/2013 3:06:07 PM PST by marron
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To: Venturer
If Krugman is right why are we paying taxes?

I keep thinking and saying the same thing.

If what the government spends is not tied to the performance of the economy, then, the economy of government can be completely divorced and separated from the private sector. Which then means that, collecting taxes won't matter at all, and the free economic system can work without having to worry about the government sector, and no taxes or fees whatsoever.


49 posted on 01/31/2013 3:14:16 PM PST by adorno (Y)
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To: Sub-Driver

The USSR could print its own money too.

How did that work out for the former superpower?


50 posted on 01/31/2013 3:33:38 PM PST by Travis McGee (www.EnemiesForeignAndDomestic.com)
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