Skip to comments.Paul Krugman Answers Paul Ryan on Debt Crisis: We Can Print Money
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--cant 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-SPANs Newsmakers.
Krugman was asked whether he thought the U.S. was in danger of a collapse, a stall, a crisis.
No, theres a whole bunch of reasons why thats not true. First of all ... that trillion dollar deficit is overwhelmingly the result of a depressed economy, and when the economys depressed, its good to run a deficit. You dont 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 ...
Proving that yet another Nobel Committee has no idea whatsoever.
I don’t blame you. This is exasperating.
I thought this was satire, but no, it is real....
“You dont want the government to try and balance its budget right now, Krugman said”
Just. Frigging. Amazing.
Collectivism tends not to attract the most insightful among us.
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.
And we also don’t want to stop Iran from getting a nuke.
That would be crazy.
Every nation in the world wants to increase its exports.
This will not end well.
Krugman needs a “Degree-ectomy” as whomever educated him is guilty as sin for teaching him wrong...
Krugman is Wimp Lo, I think his teachers trained him completely wrong as a joke....
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.
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.
You have to be impressed. I am. Amazed, really.
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?
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.
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?
Worked great for Zimbabwe didn't it?
That'll get you a loaf of bread and a cup of coffee.
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.
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.
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
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)
If it’s that simple, can I print out a few $20s, too?
And it would increase the cost of our imports, including oil. We are running a trade deficit now.
This is who Danny Glover wanted for Sec. of Treasury. A real brain trust liberals are.
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”
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.
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.
So my bill is 10,000,000,000,000 times better than yours.
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.
When the lenders catch on (and I'm surpised they haven't already) the spigot of real money is going to run dry.
Very cogent synopsis. Thanks.
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?
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.
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.
In other words, we can tax people by making their money worth less. Or worthless.
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.
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
So, which Paul Krugman idea does everyone like better:
A. Minting one trillion dollar platinum coins.
B. Printing trillions of dollars of paper currency with no intrinsic value.
In my humble opinion they are equally brilliant. The choice is difficult.
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.
And the wages of every working-person in the country.
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.
When it comes to economics, I didn’t think it possible to find someone dumber than Larry Summers. Paul Krugman has proved me wrong.
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.
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.
Yipee! Free money, what could possibly go wrong? /s
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.
The USSR could print its own money too.
How did that work out for the former superpower?