Following recent calls for huge amounts of new deficit spending and stimulus, the first indication from Paul Krugman that the economy is turning, comes in a post today when he
writes:
Yes, the latest news suggests improving growth prospects.
Krugman watches the data closely, so he sees whats coming. That's why he has to start wiggling from this, which he
wrote just little more than a week ago:
As I have since tried to point out more formally in my work with Gauti Eggertsson, the best interpretation of our current difficulties is that we’re suffering from a deleveraging shock, and that the economy will need support until over-leveraged players have had time to work down their debt. That logic implies that you need a tow, not a jump-start; the economy is going to need help for an extended period of time.
Then, of course, the BIG wiggle will have to come when he realizes the price inflation ahead, rather than dangerous disinflation/deflation he has been talking about. Earlier this month in a post titled,
Disinflation Confirmed, he wrote this doozy:
Disinflation is underway, with deflation a real eventual possibility
His wiggle on this will have to start in Q1-2011, or he is going to look like a total sap by Q3-2011.
It does not matter really. I have come to realize that the Krugmanbots are beyond solution. People that read Krugman and actually believe his posts lack critical thinking, so the constant flip-flops by Krugman wont affect their faith on the leader.
ReplyDeleteThere are some real effing morons in this world. Sadly they hold positions or adversely influence those who do.
ReplyDelete