And he is clueless, when it comes theory and understanding economic theory. Due out soon is his book on how to end the recent financial downturn. It should be in stores just in time for the Dow to break to record highs, unemployment to drop another full point and prices should be soaring.
The latest data to put a dagger into Krugman book sales:
Moody's: Credit-card delinquencies hit all-time low in February.The Great Recession is over, but there still might be some good news for Krugman. With price inflation about to smack the country very hard, when Krugman's book ends up in the remainder bin, the price (not adjusted for inflation) could still carry a double digit price.
Robert, In general I agree with many of your prognostications but I find your belief that the Great Recession is over. In fact, it's not a Great Recession. It's a Great Deleveraging. The key question is when are losses going to be recognized. In terms of the trillions in losses that are being hidden by the sociopathic class (i.e. bankers). They have reached the limit of being able to pass it on to the public (see Euro Crisis). This is only a pause before the next crisis hits.
ReplyDeleteYour predictions would be correct if many of the assumptions underpinning it were true. But when you consider that basically the financial system has broken down (see MF Global, Obama's gift to bankers to not prosecute for Mortgage Fraud, manipulation of gold and silver prices, etc). What sane person would put their money into the market? Even in Europe, the ECB has basically been transformed into a hedge fund, seriously undercapitalized at that.
Anyway, for us who define inflation as an increase in the money supply (be it by debasing the coin, or providing certificates not backed by gold, or the modern version of adding more units of the fiat currency), inflation has been off the charts for a while. I don't pay attention to the increase in general prices because being someone of the austrian persuasion I know that it has no value since you cannot tell how the money will flow through the economy. I think you waste your time looking for credit card delinquencies since those who are subsisting on food stamps (i.e. about 1/2 the US population) are hardly in a position to either have or use a credit card. All the best