Thursday, December 22, 2011

Krugman Totally Toasted on Jobless Claims Number

Paul Krugman and his band of Klueless Keynesians not only were way off on the absolute number of jobless, but they got the direction that claims are moving in wrong.

The median forecast of 45 Krugman-like Keynesian economists surveyed by Bloomberg News projected an increase to 380,000. The jobless claims actually fell by 4,000 to 364,000 in the week ended Dec. 17.

The Bloomberg comment on the number must have also stabbed "I see a Great Depression" Krugman:
The number of applications for unemployment benefits unexpectedly dropped last week to the lowest since April 2008, a sign that the U.S. labor market is strengthening heading into 2012.
Krugman is probably cheering the slow improvement in the GDP number in the third quarter, but that was the third quarter. We have had three more months of crazed Bernanke money printing since then, which will most assuredly push things further toward a manipulated boom---along with accelerating price inflation.

8 comments:

  1. Loving it Wenzel. You need a weekly column somewhere!

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  2. If krugman is wrong and printing money is so aweful than why's it working and the economy is improving and jobs are coming back.

    Looks like youre the one thats wrong.

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  3. Even ZeroHedge is denying this manipulated reflationary boom .. or as in Anonymous#2 (which is most likely Krugman himself!) above's words "recovery".

    ~ Anonymous#3

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  4. Anonymous:

    Wenzel is not saying that money printing legitimately fixes and improves the economy. He is saying that money printing generates a false boom, which makes it APPEAR AS IF the economy is fixed and improving, when in reality it is being set up for another crash later on.

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  5. Anonymous 12:05,

    Until the bust comes and all of the malinvestments created by the manipulated boom are revealed. I take it that you're not familiar with the Austrian theory of the business cycle.

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  6. anonymouse 12:05 - you throw money at something,people are gonna spend it obviously.these jobs are as phony as the money being printed.aka malinvestment.
    what krugster is missing is the inflation which will accompany

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  7. @anon 12:05

    Wenzel is NOT saying money printing is good ... rather, he's saying that its effects are predictable, including the price inflation that is coming (and already here), which will destroy savers and those on fixed income and eat away at real wages

    also - use spell check and learn the difference between "than" and "then"

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  8. The problem is your failure to understand that Helicopter Ben's mad money printing is not working by 'improving the economy' or jobs; rather, the influx of new fiat money created by artificially low interest rates and expansion of the money supply has moved through the capital goods sector, causing malinvestment, and has begun hitting the consumer goods sector. That is, this credit inflation has distorted the produciton process making it APPEAR that more means exist for current production than are actually sustainable. Jobs are being created to satisfy demand that is unsustainable, and will eventually be destroyed again when good ol Heli-Ben stops his trusty printing presses.

    Unfortunately, Bernake's pulling a couple billion dollars out of a hat does inspire much awe - it is frightening to see a mad scientist playing with the economy as though it were his own personal Junior Chemist set.

    PS - I think you were trying to say AWFUL.

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