Posted on 01/29/2010 5:38:43 AM PST by blam
Krugman: America Is In Serious Trouble And Our Government Is Too Wimpy And Incompetent To Do Anything About It
Henry Blodget
Jan. 29, 2010, 6:09 AM
Paul Krugman trashes the "deficit peacocks" like President Obama who pretend to care about the mountain of debt we're building up without actually doing anything about it.
The LAST thing we want to do right now, Krugman says, is cut spending, because it's the only thing keeping us out of depression. But we do need a plan to increase spending now and cut it sharply later...and that's what our government is incapable of providing.
From the NYT:
The nature of America’s troubles is easy to state. We’re in the aftermath of a severe financial crisis, which has led to mass job destruction. The only thing that’s keeping us from sliding into a second Great Depression is deficit spending. And right now we need more of that deficit spending because millions of American lives are being blighted by high unemployment, and the government should be doing everything it can to bring unemployment down.
In the long run, however, even the U.S. government has to pay its way. And the long-run budget outlook was dire even before the recent surge in the deficit, mainly because of inexorably rising health care costs. Looking ahead, we’re going to have to find a way to run smaller, not larger, deficits.
[snip]
(Excerpt) Read more at businessinsider.com ...
that GDP growth is all govt stimulus. They are shoveling out hundreds of millions to every specious local and state govt project as fast as they can print it
So for a few minutes, the shallow end of the pool looks a little deeper as the feds bail water into it from the deep end of the pool
Meanwhile, I go to the malls and stores here and they are ghostly- just look at the parking lots of the car dealers
Keynesian Economics! (IDIOT!)
Spend, Spend, Spend! Consume, Consume, Consume! Tax, Tax, Tax! Spend, Spend, Spend, Consume, Consume,............................................
The problem now is, people are starting to save, which short circuits the Keynesian agenda where Consumption is absolutely a vital requirement. The other problem is, all these new Government agencies, bureaus and unaccountable Czars are “Consuming” tax dollars at the very top of the food chain. And the public stops “Consuming” when they become unemployed, underemployed, they become over taxed or they protect their wealth by leaving the country.
This is a GUARANTEED disaster folks.
If advisors like Harry Dent are right, the economic bow of our ship of state should start to slip below the waves by middle of this year, by end of year for sure
Krugman is like the rich passengers on the Titanic who demanded the Captain take the northern route, then began to panic and cast blame when the crew noticed a faint shadow of an iceberg on the horizon
Wow, is that statement “right on” or what?
I gotta re-read Ayn Rand
And they were also the first to demand a place in one of the few lifeboats that were available.
I am fairly certain the US Congress, Goldman Sachs and others, have their lifeboats packed and stacked, maybe no one invited Krugman
I always liked how the WSJ editorial page refers to him as ‘Former Enron Advisor, Paul Krugman’.
IF THIS IS WHAT PASSES FOR WISDOM, THEN THANK GOD ALMIGHTY I AM A FOOL................
KRUGMAN, you supported the current bunch of incompetent stooges. That makes you an incompetent idiot also!
Not any of us here were fooled. YOU WERE.
They have very little to lose. They stopped the bleeding in Europe first with their TARP money. Then they bought massive quantities of Oil at $33 dollars a barrel and unloaded it at over $80. They paid off the “Loan” and increased their value, courtesy of the American tax payer.
There should be criminal investigations over this in the real world. But then, we clearly now live in Bizzaro World where down is up, wrong is right, etc,,,.
Q4 moves up due to inventory restocking anticipating demand. Goldman Sachs - your most trusted source in all things cannibal.
These folks don't think the laws of economic reality apply to them. They've jumped out of a plane - no parachute - with us in tow - and they're saying gravity doesn't apply any more...
And you never know what they believe based on what they say. Do the elected liberals really believe you can have a recovery with the type of debts they want to run up? Or do they know the debt will kill the economy, but by borrowing more in an election year to create more government 'jobs' they want to look like Roosevelt, the Saviour handing out the day old bread at soup lines while paying farmers to destroy their crops and outlawing them growing more?
Too long. Better title: America Is In Serious Trouble because Our Government Is Incompetent
To justify the freeze, Mr. Obama used language that was almost identical to widely ridiculed remarks early last year by John Boehner, the House minority leader. Boehner then: “American families are tightening their belt, but they don’t see government tightening its belt.”
"widely ridiculed" among the people Krugman knows? I think it's a good summary of what is going on, although a little hypocritical coming from a Republican who also spent too much when his party was in power.
And economic officials in the Obama administration understand that logic: for the past year they have been very clear that their vision involves combining fiscal stimulus to help the economy now with health care reform to help the budget later.
"health care reform to help the budget later." Yeah, right.
Dude, instead of the same rant you should consider moving. Here in So Cal, i drove around 15 minutes looking for a parking spot at the outlet mall. The BMW dealer up the street has been trucking in new cars at least three times this week that I’ve seen.
Yo dude, glad to hear you are enjoying the good life in Colleyfornia. Guess you really don’t need any federal bailouts to keep the lights burning! Party on!
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