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The following is a fine example of the blind leading the blind.
King Krugman talks with Joe Weisenthal, BusinessInsider's cronic gold hater (i.e., the guy who puts out headlines like "GOLD IS GETTING CRUSHED THIS MORNING" when the metal is down $7).
Krugman talks about how we're "underhoused"...and how "Bernanke gets it". But most interesting is Krugman's euphemism for the current situation. He calls it a "virtuous circle".
As Rothbard wrote of monetary inflations:
"...while it proceeds on its merry way, [it] sows the seeds of its own demise.So tuck Krugman's "virtuous circle" comment away in your mind for a future date.
At that time, the media will talk about how no one saw the disaster coming; blame will be pushed off on white collar executives, who will be carted off in handcuffs; and Krugman will find a way to spin his comment to mean that he was actually *warning* everyone of the danger ahead.