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We just need to spend $2 trillion and send high school and college kids to rake leaves in our national parks, then we will turn this economy around. We can "busy work" our way into prosperity, I'm sure of it.
That's maybe an over-the-top title for a very interesting story. The German economist, Weber, is saying Germany doesnt want to follow the U.S.'s lead (as defined aggressively by Krugman).
(Also the Germans -- or at least Weber -- might feel that Krugman's opinion is influential enough to affect Weber's appointment to head the European Central Bank.)
I understood the WSJ editorial to be saying that Krugman doesnt think the Germans should be focusing so hard on inflation just now, while there are no signs of it. "I would rather see an ECB President who gives more weight to deflation risks and the risk of a protracted stagnation.†“German austerity will worsen the crisis in the euro area, making it that much harder for Spain and other troubled economies to recover.†(Krugman also thinks the European Central Bank should be buying the bonds of distressed countries; the Germans dont agree.)
But the Germans famously are gun shy about inflation and are proud that their deficit is shrinking.
"Krugman also told Handelsblatt he wouldn’t rule out sanctions against Germany if it continued to rely on its export-driven model. 'If the euro falls to parity with the dollar, the Europeans are going to be surprised by the demands that will come out of the U.S. Congress, and I would support that,' he said."
The angry reply was,
“Where did the financial crisis begin? Which central bank conducted monetary policy that was too loose? Which country went down the wrong path of social policy by encouraging low income households to take on mortgage loans that they can never pay back? Who in the year 2000 weakened regulations limiting investment bank leverage ratios, let Lehman Brothers collapse in 2008 and thereby tipped world financial markets into chaos?â€
We just need to spend $2 trillion and send high school and college kids to rake leaves in our national parks, then we will turn this economy around. We can "busy work" our way into prosperity, I'm sure of it.
I actually recall someone on another thread who claimed to know something about economics RE: the Montana tennis court stimulus project. He actually said he didn't care if they did the macarena as long as the project was funded. Krugman's toxic cancer has apparently spread far and wide.
I can't believe Liberals buy into the Keynesian system of SPEND more and you get more in return and its okay to go into debt doing it... What Krugman did was say to the Americans, lets do exactly what the financial markets did (which led us to where we are today) and instead of the financial markets doing it, lets make the government do it... huh? What an idiot... but I guess its okay since its not "his" money as long as when the government is doing it, the companies he invested in are the "middleman"... its so shady politics and the payoffs to the middleman who pays the politician right back...
I can't believe Liberals buy into the Keynesian system of SPEND more and you get more in return and its okay to go into debt doing it... What Krugman did was say to the Americans, lets do exactly what the financial markets did (which led us to where we are today) and instead of the financial markets doing it, lets make the government do it... huh? What an idiot... but I guess its okay since its not "his" money as long as when the government is doing it, the companies he invested in are the "middleman"... its so shady politics and the payoffs to the middleman who pays the politician right back...
He's the perfect talking head for this insanity. After all, how DARE one argue with a Princeton University professor who writes op-eds for the NYT and won the Nobel Prize?
And yet, he'll write something the cons agree with (it has happened), and one of them will start a thread using his words as "proof positive" (as has happened).
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