Thursday, September 3, 2015

Another Paul Krugman Attack on Ron Paul

Clearly, Paul Krugman is obsessed with Ron Paul. This is good. Dr. Paul should be haunting all Keynesians everywhere.

In his latest salvo, published today at his blog, Krugie digs up some old clips of Dr.Paul and Peter Schiff warning about coming high inflation. Well, forecasting is a tough business and two can play the look at the old forecasts game. And Krugie looks like a complete sap when that game is played on him.

In 2011, Krugie was interviewed by Fareed Zakaria on CNN. During the interview, Krugie said that unemployment would likely be stuck in the 7.0% to 8.0%. As can be seen in the chart below, unemployment has steadily declined since his appearance and is now at 5.3%.

On the price front, Krugie warned of deflation, since his 2011 appearance, the Consumer Price Index has climbed by more than 7%, some deflation.







My favorite Krugie thigh-slapper, though, is his 2012 book, End This Depression Now!. With bated breath, he detailed the number of actions that had to be taken to get the economy out of depression. The only problem with the advice was that the economy had already been out of downturn mode for 3 years.

But the big problem is that Dr. Paul and Schiff will eventually be correct about their inflation warnings and Krugie will still look like a sap for his deflation warning and dumb  Depression Now book.

As Krugie concludes in his post, "It’s a pretty sorry spectacle."

-RW

10 comments:

  1. Don't forget Krugman's prediction that the impact of the Internet on the economy would be no greater than the fax machine

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  2. Krugman's a tool, but to use the craptastic unemployment data from BLS to claim he was wrong? Really? With the lowest labor participation rate in generations? C'mon, surely you can do better than that. I bet if I wandered about here I'd find many blog posts attacking that data.

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    1. It's not what RW thinks of the BLS data. It is what Krugman thinks of it, and my bet is that he respects it as holy writ. Hoist on his own petard, as it were.

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  3. The financial cartel, for whom PK fancies himself a spokesman, doesn't operate a fractional reserve banking system based on a fiat currency because it thinks it's a robust monetary model. Far from it. They know it's a disaster perpetually waiting to happen. The cartel supports and maintains such a system because it affords great power to its beneficiaries -- power to luxuriate in and profit from as long as it can be kept clanking along without currency unit catastrophe.

    The last time the USG overtly defaulted on its financial obligations was back in 1973, when it peremptorily broke a gold convertibility agreement and replaced it with a system of implicit coercion to support its currency unit. If the jiggery-pokery fails again this time, events could become even more unpleasant than was the experience of watching a prime time televised address from Nixon. Consequently PK is quite prudent to be worried about this Ponzi collapsing.

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    1. The US govt was not contractually bound to maintain Bretton Woods so getting off Bretton Woods is not default.

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    2. The U.S. also defaulted in 1979, so this was actually the last time. But it was only a technical default. Another default of sorts would have to have been FDR confiscating the private gold hoards of Americans in 1933...governments can and do change the rules and redefine reality at whim.

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  4. Krugman must still be smarting from getting trounced in that debate.

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  5. If Paul Krugman ever was a legitimate economist, this surely could not be said with a straight face about him now. IMO, he has become a crude caricature of his former self. Nothing more than an entertainer. Nothing. What I see as his envy of Dr. Paul is nothing short of disgusting.

    For the record: http://www.americanthinker.com/articles/2010/06/paul_krugman_the_selfcontradic.html

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  6. Krugman is to economics what Kramer is to sound market advice. Alligator mouth, mockingbird brain.

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  7. Your CPI shows several months of deflation. Unemployment was stuck between 7 to 8% for 2 years.

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