Friday, April 29, 2011

Krugman Gets It: Ron Paul Is Having an Impact

Paul Krugman, being a big government Keynesian spendthrift, calls it tragic, but he clearly sees that Ron Paul is having an impact.

Folks, something is happening here, first I get a call from a D.C insider who only wants to talk about Ron Paul, and now this from Krugman:
The Economic Consequences of Mr. Paul

Kash Mansori pursues the same line of thought I followed after Bernanke’s press conference, and fleshes it out.

Basically, if you listen to Bernanke’s analytical comments, they make a powerful case for more expansion. Underlying inflation is low; unemployment is disastrously high, and the corrosive effects of long-term unemployment are hurting the future as well as the present. More quantitative easing — QE3 and beyond — might not work, but it’s very much worth trying.

And yet Bernanke balks at doing anything, suddenly seeming to abandon his own analytical framework. What’s going on?

Mansori and I agree: he’s afraid of the inflationistas, and is accommodating them even though he believes they’re completely wrong.
Maybe that’s what he has to do. But it’s truly tragic.
How Krugman can not see the inflation swirling around him or the fact that employment is starting to tick up (especially in the tech sector) is amazing, but he does know Ron Paul is coming. One out of three for Krugman isn't bad.

BTW, money supply is growing at roughly 4.5% and hundreds of billions more of new money is flowing into excess reserves. If this is accomodating the "inflationistas", then the Ritz Carlton is now accomodating guests at the Cockroach Hotel.


  1. Run home and cry to mama, Krugman! What's it like to be a propagandist for the Democratic Party and fractional-reserve banksters?

  2. Unfortunately the general public hasn't woken up enough to issues regarding the Fed, and more importantly government spending. They aren't aware of what politics-economics news junkies take for granted.

    "POLL REVEALS: Americans Are Still In Deep Denial About The Deficit" If they realized how bad it is politicians would need to act. Non politics-junkies tune out numbers in the $trillions so we need to rephrase the issue:
    The federal government will need >$1 million per household to pay its IOUs!
    > $116 trillion ="official" debt plus money  short for future social security, medicare, etc
    Even its "official debt" of $14.2 trillion  is $123,754 per household!
    Details at with links to contact congress & complain.
    Be among the first to join the new Facebook cause "Stop National Debt" :
    since if you don't spread the word, who will?

    Those who do "get it" need to spread the word to those who don't.. and spread the word to others who "get it" to keep repeating that very simple message until the public wakes up: $1 million per household for federal IOUs is too much!

  3. "More quantitative easing — QE3 and beyond — might not work, but it’s very much worth trying."

    It's always entertaining to see what Krugman suggests we do with other people's money. "It might not work, but that's not going to stop me from advocating that we try it anyway." I wonder if he's so quick to invest his own money into things that might not work.

  4. Krugman published my blog comment:

    "The Austrians can declare victory and go home. We’ve won the debate. Clearly, no one in the real world truly believes that Keynesian “stimulus” actually works or else there would be a mass clamoring for more. Further, if the Austrian theory is so wrong, why don’t Krugman and the rest of them simply refute it? However, even with their backs to the wall, we never even see an attempt at refutation from Krugman, just silly name-calling. There is no attempt at refutation of the Austrian Business Cycle Theory because it is irrefutable."


    This hits the nail on the head:

    "So the Federal government will have spent over $6 trillion--almost 41% of the nation's annual GDP--just to keep GDP stagnant. That $1 trillion a year in extra spending is 7% of the GDP, which implies that if the Federal budget returned to the carefree, free-money days of 2007, the GDP would contract by 7%.

    And that's not even counting the trillions of dollars injected into the financial system by the Federal Reserve's opaque machinations and money-printing schemes.

    So what is America getting for this extra $1+ trillion in Federal spending a year? Just more of the same old Status Quo that did such an outstanding job circa 2008-2010"

    And Krugman wants MORE of this? Wow. Talk about a believer. But oh HORROR OF HORRORS, now Bernanke has to be mindful of critics of his outright robbery of the US citizenry! What is the world coming to.

  6. BTW I think a problem they have with Paul, is that despite being popular, he is also "respectable". He's morally upstanding and honest, and has the air of a benign old grandfather or your local doctor about him. It makes character assassination that much the harder.

  7. The more the plans fail, the more the planners plan.

    -Raygun - 1964 - His Best Speech Ever

  8. I think it is fair to say that inflation is the most regressive tax as it hurts those at the bottom the most. Krugman is one of the most visible cheerleaders for the Feds inflationary policies, policies which have been proven to widen the income gap between rich and poor, yet the title of Krugman's blog is, "The Conscious of a Liberal."

    I guess I am preaching to the choir here.

  9. Don't believe any polls.

    Polls are manipulated to generate pre-determined results. Poll particiants are chosen ahead of time based on sophisticated prediction algorithms. Those who design polls know how the participants will answer before the questions are even asked.

    More and more of America is waking up to the truth about our debt based money system. This will never be reflected in any of the polls because doing so does not serve the interests of the crony capitalist/central banker crowd.