It’s now impossible to deny the obvious, which is that we are not now and have never been on the road to recovery.The recovery is a Fed manipulated recovery, but all the numbers that Krugman looks at will signal to him, down the road, a recovery.
In other words, it's just another quote to hang on him, along with his warnings of deflation.
Three to 6 months from now, his Keynesian view will be totally demolished, from a price inflation perspective and a manipulated recovery perspective.
You seem to forget that in 3 to 6 months, Krugman wouldn't have ever said this, or was misquoted, or was taken out of context.
ReplyDeletePlease expand on this statement: Three to 6 months from now, his Keynesian view will be totally demolished, from a price inflation perspective and a manipulated recovery perspective.
ReplyDeleteHis views have already been totally demolished. He did not see this depression coming. People still read him for some reason. My conclusion is that those people are stupid.
ReplyDeleteWould you clarify how you are defining "recovery"?
ReplyDeleteI get what you are saying, but reasonable people can disagree. There is too much debt, public and private for a recovery.
ReplyDelete"from a price inflation perspective"
ReplyDeleteI assume that the Fed actually cares about price inflation a little bit, so I don't understand why you are absolutely sure about this. At some point price inflation will be more politically influential than money flow, and that's when the Fed starts cooling it. That time could come sooner than you think. It seems more likely that we will oscillate in and out of deflation/inflation for the next decade or more.
"and a manipulated recovery perspective"
I have a feeling he'll argue that it was or wasn't really a real recovery, and then you'll call him out for admitting that Keynesian recoveries aren't real.
In any case, Krugman won't lose any followers. Socialist atheists generally rely on faith, not logic, when it comes to matters of non-faith.
I second Deft's opinion. People = Stupid
ReplyDeleteBesides Wenzel, what other Austrian economists have been predicting a manipulated recovery in the very near future?
ReplyDeleteGee, by the time they recognize the HOT inflation it will be too late, so like a teenage driver they will overcorrect. Eventually they will run it into the ditch. Let's hope they don't kill us all when they do!
ReplyDeleteRemember when Krugman said QE2 would not cause commodity prices to increase unless real demand was stimulated, which he was sure it would be? That was a two part fail.
ReplyDeleteRemember when Krugman said the Japanese earthquakes were good because of the spending on roads, construction, etc?
Remember when Krugman wrote the article attacking someone in the audience for saying someone should be left to die in the GOP debate, then implied that was the Ron Paul position when he said the exact opposite?
Remember when Krugman was calling in 2003 for lowering of the interest rates for more housing stimulus????
This guy's credibility is entirely based on how relatively few of his actual predictions and statements are known by the public, but as the internet continues to grow in power and document his nonsense, he will eventually only be taken seriously by DC insiders and the NY Times.
Does Hot Inflation occur because of monetary easing abroad, domestically or both?
ReplyDelete"There won't be a recovery until aliens attack"
ReplyDelete-Pauly Krugman - PhD, Kindergarten University
Krugman does act like he graduated from a Keynesian Kindergarten...A victim of Prussian/Dewey/Thorndike Ivy League indoctrination.
ReplyDelete@ Gee at 1:17 pm
ReplyDeleteI don't think there are direct political consequences for the "inflation tax." It's source and cause is largely hidden from the public. That is why it is so historically pervasive and popular amongst leadership.
The USA Terrorists can steal a LOT more via inflation than they can in taxes...Europe is the opposite but even their pathetically obedient taxpayers are getting angry so the Euro Terrorists are now getting ready to use inflation for bailouts.
ReplyDelete