Sunday, May 12, 2013

More For the Krugman File

Paul Krugman just endorsed the mad money printing that has been launched in Japan under the rule of the new Prime Minister Shinzo Abe. Let's hold on to this quote, to be pulled out in a couple of years, when things turn very bad because of the money printing, when price inflation goes vertical or the Japanese stock market crashes with a greater thud than would be made by Chris Christie hitting the ground after slipping on a banana peel.

Here's Krugman:
All of this reinforces the important point that, as I put it early in this crisis, we’ve entered a looking-glass world in which virtue is vice and prudence is folly, and in which doing the responsible thing is a recipe for economic failure. 
And it also bodes surprisingly well for Abenomics, which might work in part precisely because of what everyone imagines to be Japan’s biggest problem, its huge public debt. 
As a bonus from this quote, I think Krugman has summed up well Keynesian economics:
 virtue is vice and prudence is folly
Or as Keynes put it:
 For at least another hundred years we must pretend to ourselves and to every one that fair is foul and foul is fair; for foul is useful and fair is not. 


  1. Krugman's statements all come with expiration dates . . . so he can never be held liable for what he said.

  2. Only a statist Keynesian hack like Krugman would think spending trillions we don't have and printing money to pay for it is considered "prudent."

    What is this dude smoking? It must be some really good stuff.

  3. Off topic but more evidence that no Keynesian anywhere understands Austrian analysis* - - - "Lord Keynes" insists that he has vanquished Austrian analysis because in a crisis, some firms cut production without cutting prices and he insists that Austrian analysis depends exclusively upon price cutting in a crisis. Seriously. That is his new manta.

    *but they are all desperate to disparage us and our analysis for any reason whatsoever