Monday, November 26, 2012

Krugman Doubles Down On His Call for Money Printing

Amazing, absolutely amazing.

On the heels, of a blog post where he calls for money printing,Paul Krugman now advocates the same in a full NYT column:
...if the U.S. government prints money to pay its bills, won’t that lead to inflation? No, not if the economy is still depressed.

Now, it’s true that investors might start to expect higher inflation some years down the road. They might also push down the value of the dollar. Both of these things, however, would actually help rather than hurt the U.S. economy right now.
He writes this even though the year 2013 may turn into a perfect storm year for price inflation, given:

1. Bernanke is printing money like a mad man.

2. The desire to hold cash is declining.

3. The drought will cause a dramatic increase in meat prices (Note: A supply side problem and not technically overall price inflation)

4. The potential of a collapsing dollar in foreign exchange markets (Even Krugman acknowledges this one).

If all these factors continue to develop as we go into the new year, price inflation will be a major problem in 2013. Krugman has no clue.


  1. PLEASE---enough of Krugman. He gets more press from the people who thinks he crazy rather than people who agree with him.

    1. I rather liked the Krug-bashing.

      I think it may even be useful to others.

    2. My point is why make someone relevant when is he not.

    3. The socialist left LOVE Krug, and laud his every word as if spoken by god. We only wish he was irrelevant.

      The inflation monster that is raising its head will hopefully slay him and his ilk first. But, he will use some weasel words and blame it on the banks or "free-market" and they will ignore his ignorance. That is why we need a handy reference that we can show them so he cannot claim he was "joking" like he did when he got called out for supporting a "housing bubble" in 2006. The man needs to be exposed for the fraudulent huckster he really is.

    4. Anonymous @ 3:39 PM asked:

      "My point is why make someone relevant when is he not."

      Like I said, I think it may even be useful to others.

      A learning event, if you will.

      Plus, what Dale said.

  2. Can someone hit this guy with a car, or push him in front of bus already?

  3. Murphy is all up on this as well. It's amazing, could they be cultivating the mass?

  4. Hope none of the other banks realize the "race to the bottom" game being played here. Then, yes, even under Keynesian modeling there would be inflation.

  5. I would love to see a post discussing indications and data that show "the desire to hold cash is declining". I believe you are correct. I'm asking for more details because I'm curious.