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Paul Krugman: The President Surrenders
The New York Times ^ | July 31, 2011 | Paul Krugman

Posted on 07/31/2011 9:25:53 PM PDT by 2ndDivisionVet

A deal to raise the federal debt ceiling is in the works. If it goes through, many commentators will declare that disaster was avoided. But they will be wrong.

For the deal itself, given the available information, is a disaster, and not just for President Obama and his party. It will damage an already depressed economy; it will probably make America’s long-run deficit problem worse, not better; and most important, by demonstrating that raw extortion works and carries no political cost, it will take America a long way down the road to banana-republic status.

Start with the economics. We currently have a deeply depressed economy. We will almost certainly continue to have a depressed economy all through next year. And we will probably have a depressed economy through 2013 as well, if not beyond.

The worst thing you can do in these circumstances is slash government spending, since that will depress the economy even further. Pay no attention to those who invoke the confidence fairy, claiming that tough action on the budget will reassure businesses and consumers, leading them to spend more. It doesn’t work that way, a fact confirmed by many studies of the historical record.

Indeed, slashing spending while the economy is depressed won’t even help the budget situation much, and might well make it worse.....

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


TOPICS: Business/Economy; Editorial; Government; Politics/Elections
KEYWORDS: congress; debtceiling; deficits; democrats; krugman; obama; teaparty
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Is he obtuse or insane?
1 posted on 07/31/2011 9:25:58 PM PDT by 2ndDivisionVet
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To: 2ndDivisionVet

I couldn’t do enough drugs to believe what the Enron Shill says.


2 posted on 07/31/2011 9:28:52 PM PDT by Absolutely Nobama (What do you get when you add Obama to an economic depression ? O-ppression.)
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To: 2ndDivisionVet

it’s a sham designed to get the u.s. congress to vote for the deal.


3 posted on 07/31/2011 9:28:53 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
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To: 2ndDivisionVet

Both.


4 posted on 07/31/2011 9:29:16 PM PDT by nopardons
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To: 2ndDivisionVet
You can do a word search through all the paranoid-lib columns today and not find the word compromise. Wasn't that the buzzword last week?
5 posted on 07/31/2011 9:31:05 PM PDT by Huskrrrr
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To: ken21

I was thinking just the opposite. I wonder if a lot of dems won’t not vote against it. If they do and we go past Aug 2 the press will cover for them.


6 posted on 07/31/2011 9:31:47 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: 2ndDivisionVet

“The worst thing you can do in these circumstances is slash government spending, since that will depress the economy even further”

Where has it worked, Douche?


7 posted on 07/31/2011 9:32:19 PM PDT by Huskrrrr
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To: 2ndDivisionVet

who cares what this morally corrupted vile little man says or thinks ? Send him to Afghanistan and have him help find IED’s on village pathways Helmand . Smug lil POS


8 posted on 07/31/2011 9:34:11 PM PDT by LeoWindhorse
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To: 2ndDivisionVet
Quit whining Krugman.

The most interesting part of the article is what Krugman did not assert. He never stated, as far as I can tell, that there should have been a tax increase. Also, boy genius stated that now is not the time to cut spending because we are in a poor economy, AND he stated that this bill does not solve our debt problem.

He should crack open a book on economics, not open an economic crack book.

9 posted on 07/31/2011 9:34:59 PM PDT by mlocher (Is it time to cash in before I am taxed out?)
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To: 2ndDivisionVet

Well if Krugman doesn’t like it there might be some good stuff in it?


10 posted on 07/31/2011 9:35:03 PM PDT by GatorGirl (Herman Cain 2012)
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To: 2ndDivisionVet

insane


11 posted on 07/31/2011 9:35:23 PM PDT by clintonh8r (Happy to be represented by Lt. Col. Allen West (this tagline under review))
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To: 2ndDivisionVet
Okay, take a breath, this is who is really driving the bus on these debt negotiations it's forces of nature Howard Beale
12 posted on 07/31/2011 9:35:37 PM PDT by hatfieldmccoy (The Obama beat down of America continues)
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To: Huskrrrr

It’s worked in a drug - induced hallucination. That’s good enough for a liberal/s;)


13 posted on 07/31/2011 9:35:51 PM PDT by Frank_2001
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To: Huskrrrr
"balanced"

DRINK!!

14 posted on 07/31/2011 9:36:14 PM PDT by clintonh8r (Happy to be represented by Lt. Col. Allen West (this tagline under review))
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To: Absolutely Nobama

wow, this column is evidence that there is no amount of brain destructive drug abuse that is an absolute disqualification to receiving a Nobel Prize!


15 posted on 07/31/2011 9:36:23 PM PDT by Enchante (Are there any honest politicians in Washington, DC??)
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To: 2ndDivisionVet

tub o' goo

16 posted on 07/31/2011 9:36:23 PM PDT by BookmanTheJanitor
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To: 2ndDivisionVet

“We currently have a deeply depressed economy.”

Wait, what about all those unexpected greenshoots popping up everywhere during recovery Summer, Fall, Winter, Spring, Summer?


17 posted on 07/31/2011 9:37:36 PM PDT by Smokeyblue
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To: 2ndDivisionVet

“Is he obtuse or insane? “

Nope, standard operating procedure when they sucker the Republican leadership. See how the Dems actually VOTE on this agreement...then you’ll see what I mean.


18 posted on 07/31/2011 9:39:28 PM PDT by BobL (PLEASE READ: http://www.freerepublic.com/focus/f-news/2657811/posts)
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To: 2ndDivisionVet

Notice the last couple of sentences? Usually the last few sentences are the windup to the message and the last thing you carry with you about the point of the article.

However, Krugman chose to end it with an attack on our whole political system. Trying to point out an imperfection, it’s not working, it needs to be changed. Communism, anybody?

This is a pattern I’ve seen in several proggie articles lately. They rant and rail and then end up with the ‘we have a flawed government system’ KRAP. And the many will believe it. Even though it worked just fine while the proggie commies spent $6 TRILLION in the last four years.


19 posted on 07/31/2011 9:40:47 PM PDT by RowdyFFC
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To: 2ndDivisionVet
a fact confirmed by many studies of the historical record.

I'm pretty sure Krugman is talking about what happened when the fed stopped pumping dollars to Captain Hook.

20 posted on 07/31/2011 9:40:50 PM PDT by vbmoneyspender
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To: Huskrrrr

Exactly. Krugman is one of the few morons left on the planet who believes Keynesian economics works. He and lot of other morons knew that America was their last hope. If they couldn’t make Keynes work here, it will never work anywhere.


21 posted on 07/31/2011 9:41:37 PM PDT by FlingWingFlyer (Hey Barry! Compromise this!!!)
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To: BookmanTheJanitor

Socialists aren’t known for their looks, but Krugman has the appearance of a rabid squirrel.

If you look at his face, his eyes, he looks like a rodent or raccoon that’s been munching on industrial waste.

Does this mean I “hate” him? Well, I don’t hate rodents, and I don’t hate raccoons, so I guess I don’t hate their human version (Krugman) either.

But I don’t take economic advice from squirrels.


22 posted on 07/31/2011 9:43:01 PM PDT by LyinLibs (All moslems are somewhere on the killing-you spectrum)
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To: 2ndDivisionVet

he’s a nobel prize winning economist,
who sold his soul...

Just like Hansen of NASA.


23 posted on 07/31/2011 9:43:26 PM PDT by Elendur (It is incumbent on every generation to pay its own debts as it goes. - Thomas Jefferson)
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To: 2ndDivisionVet

I wonder if Mr. Krugman has ever Googled the search terms “Warren Harding” and “depression 1920-1921” at any time?


24 posted on 07/31/2011 9:45:03 PM PDT by SoCal Pubbie
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To: 2ndDivisionVet

He must not have listened to Wavy about the brown acid.


25 posted on 07/31/2011 9:45:07 PM PDT by John 3_19-21
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To: 2ndDivisionVet
The worst thing you can do in these circumstances is slash government spending,

And if we were actually 'slashing' anything, we might have something to talk about.

26 posted on 07/31/2011 9:45:16 PM PDT by TexasNative2000 (The Tea Party didn't start the fire - they sounded the alarm!)
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To: 2ndDivisionVet

No as we say in the South He’s ignernt.


27 posted on 07/31/2011 9:45:47 PM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: 2ndDivisionVet

“Congressman Emanuel Cleaver: If I were a Republican I would be having a party”

Glancing quickly at several dem boards they are crying just as loudly as some here. Mirror images.

We were sold out, traitor, DINO, weakling, blah blah blah

My favorite DU topic — “F-—K Progressives. Screw Liberals. The message is that we are officially irrelevant”

Obama and the rest of the Conservadems have officially enshrined the GOP Teabagger Agenda in stone. And they are doing it willingly and, I suspect happily. Liberalism is dead. At least within the template of the current Democratic Party.

Another board - “The Tea Party is kicking butt and Democrats are licking their boots. The Tea Party is running this country, and Obama has the worst negotiation skills in presidential history.”

“Something needs to happen to make the f-—ing Democrats understand that we’re more than the “lunatic left”. We’re tired of them selling us out every g-—amn time they make a “deal”.

And on and on. It’s a real meltdown.


28 posted on 07/31/2011 9:46:21 PM PDT by tlb
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To: 2ndDivisionVet

If Krugman hate it, I like it. Just by definition.


29 posted on 07/31/2011 9:47:37 PM PDT by Uncle Miltie (Gore Lauds Romney on Climate Position; 0bamaCare was based on RomneyCare.)
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To: 2ndDivisionVet
Krugman is the Last of the True Keynsians.

NOTHING cannot be solved with a sufficient infusion of freshly printed thin-air money.


30 posted on 07/31/2011 9:47:37 PM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: 2ndDivisionVet

I’ve been out of the news loop on the debt discussion because we’ve been camping, but if Krugman is unhappy, things must be developing in a positive direction at least a little.


31 posted on 07/31/2011 9:47:47 PM PDT by lurk
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To: 2ndDivisionVet

Thank God I hit the NY Times paywall.


32 posted on 07/31/2011 9:49:10 PM PDT by FormerACLUmember (When the past no longer illuminates the future, the spirit walks in darkness.)
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To: RowdyFFC

Krugman and Friedman agree: that pesky constitution just gets in the way.

CHINA is the model! Dissenters? Bullet in the neck! Onward to victory, comrades!


33 posted on 07/31/2011 9:49:24 PM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: 2ndDivisionVet

“The President Surrenders”

I’ll get back with ya Mr. Krugman....after the rubber meets the road.

Sorry I have become such a cynic.


34 posted on 07/31/2011 9:50:23 PM PDT by berdie
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To: Absolutely Nobama

LOL, and agree.


35 posted on 07/31/2011 9:50:40 PM PDT by Cheerio (Barry Hussein Soetoro-0bama=The Complete Destruction of American Capitalism)
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To: 2ndDivisionVet

It no longer matters. This country is over. It’s all going to crash.

A new president is too far off to do this nation a damn bit of good. We are going to be downgraded. We are going to fall into a full blown Depression.

THERE IS NO VICTORY TONIGHT. and theres not ever going to be one.

Obama with the democrats and the rest of those damn politicians have ruined our country.

I’ve had it folks. That bastard Obama has won. I don’t care how you cut it, the bastard has won. Sure, he may not win in 2012, but so what, the country is already lost.

Sorry, but my string has snapped... I have had it.


36 posted on 07/31/2011 9:52:58 PM PDT by Gator113 (Palin 2012, period.....)
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To: 2ndDivisionVet
Oh come on Paul. Drink some more!

You have to keep up with that washed up drunk, Maureen Dowd.


37 posted on 07/31/2011 9:53:54 PM PDT by FormerACLUmember (When the past no longer illuminates the future, the spirit walks in darkness.)
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To: Terry Mross

I wonder if a lot of dems won’t not vote against it.


This is a triple negative. Congratulations. lol


38 posted on 07/31/2011 9:54:43 PM PDT by TwoSwords (The Lord is a man of war, Exodus 15:3)
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To: 2ndDivisionVet

If the compromise consists of ‘cuts’ of $100-$300 billion a year then Krugman’s second sentence is correct. Everything else he says is crap. The nation is presently running deficits of $1,600 billion a year. With the proposed ‘cuts’ of the compromise that still leaves $1,300 to $1,500 billion added to the debt every year. Exponential math tells me we are fast approaching the event horizon.....


39 posted on 07/31/2011 9:55:20 PM PDT by yadent
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To: 2ndDivisionVet
Paul Krugman, the Self-Contradicting Economist
40 posted on 07/31/2011 9:55:47 PM PDT by JimWayne
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To: Gator113

Here’s where I’d be if I had the funds to move:

http://www.LivingInThePhilippines.com


41 posted on 07/31/2011 9:57:41 PM PDT by 2ndDivisionVet (I'll raise $2million for Gov. Sarah Palin. What'll you do?)
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To: 2ndDivisionVet

It amazes me how obtuse you have to be to write for that rag..


42 posted on 07/31/2011 9:59:05 PM PDT by lawnguy (The function of wisdom is to discriminate between good and evil-Cicero)
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To: 2ndDivisionVet

He’s pretty lucky

Not too many jobs out there for professional shitheads.


43 posted on 07/31/2011 10:03:11 PM PDT by Rome2000 (OBAMA IS A COMMUNIST CRYPTO-MUSLIM)
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To: 2ndDivisionVet

Does it have to be either or?

How about both.


44 posted on 07/31/2011 10:09:44 PM PDT by DoughtyOne ($1.8 tril yearly deficits = $18 tril in ten years. So now we're proposing $4 tril in cuts? Really?)
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To: 2ndDivisionVet

My FRiend, so would I.............. so would I.


45 posted on 07/31/2011 10:10:02 PM PDT by Gator113 (Palin 2012, period.....)
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To: 2ndDivisionVet

The man is effin nuts.screw him and his friends, the whole lot of em.


46 posted on 07/31/2011 10:12:29 PM PDT by going hot (Happiness is a momma deuce)
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To: 2ndDivisionVet
Have you been to the Philippines? My neighbor goes there on business and I can't remember what he said about it but it wasn't very good. You can't drink the water or it is not safe for you to travel around, it was something very negative. I'll ask him.
47 posted on 07/31/2011 10:13:11 PM PDT by Ditter
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To: Ditter

There are 7,107 islands there, so I would think it’d be hard to generalize.


48 posted on 07/31/2011 10:15:23 PM PDT by 2ndDivisionVet (I'll raise $2million for Gov. Sarah Palin. What'll you do?)
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To: BookmanTheJanitor

The cat, at least, looks intelligent. It would probably do a better job writing columns, too.


49 posted on 07/31/2011 10:17:21 PM PDT by exDemMom (Now that I've finally accepted that I'm living a bad hair life, I'm more at peace with the world.)
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To: Cheerio; Enchante

I think I made more sense after my stroke. Paul Krugman has sunk to another, illogical low.


50 posted on 07/31/2011 10:21:44 PM PDT by Absolutely Nobama (What do you get when you add Obama to an economic depression ? O-ppression.)
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