Hijacking the Hijacked Crisis According to Paul Krugman
Abstract: Paul Krugman grinds his old rusty axe and calls for more government spending and forgiveness of mortgage debt so as to buy more votes and hopefully save Obama’s presidency and reputation. This is all so much reboiled tripe.
As we peruse the hallowed pages of the near-bankrupt
We begin with the tautological quest for more taxes, higher spending and bigger government—the Krugman troika and strict boundaries to Paul Krugman’s narrow political knowledge, his rote, repetitive and focused training.
How to best read my blogs:
[I offer extensive quotes in this blog so that the reader can view the exact language and can be confident that nothing was taken out of context or that nobody was misquoted. The easiest way to take in the salient points is to read the emphatic points in the quotes and then peruse my comments. Comments on my comments are always welcome: ryckki@gmail.com.]
The Crisis:
“For more than a year and a half — ever since President Obama chose to make deficits, not jobs, the central focus of the 2010 State of the Union address — we’ve had a public conversation that has been dominated by budget concerns, while almost ignoring unemployment. The supposedly urgent need to reduce deficits has so dominated the discourse that on Monday, in the midst of a market panic, Mr. Obama devoted most of his remarks to the deficit rather than to the clear and present danger of renewed recession.”-- The Hijacked Crisis By PAUL KRUGMAN Published: August 11, 2011 http://www.nytimes.com/2011/08/12/opinion/the-hijacked-crisis.html?_r=1&src=ISMR_HP_LO_MST_FB [Emphasis is mine in all quotes.]
Here, we detect some flack flung in the direction of one of Obama’s political planks and that is the notion that he must steer this ship on a narrow course that includes fiscal responsibility. Below is a structured speech given by the Treasury Secretary who hears his master’s voice and barks accordingly.
We hear of cutting deficits by Obama and his minions from 2009:
“In his speech, Geithner renewed pledges that the Obama administration would cut its huge fiscal deficits and promised "very disciplined" future spending, possibly including reintroduction of pay-as-you-go budget rules instead of nonstop borrowing.
"We have the deepest and most liquid markets for risk-free assets in the world. We're committed to bring our fiscal deficits down over time to a sustainable level.
"We believe in a strong dollar ...and we're going to make sure that we repair and reform the financial system so that we sustain confidence," he said.”[4]-- Geithner Monday June 1, 2009
Gee, do we see some conflict here? Of Obama’s many false promises, this one is the biggest of all the lies. Where did pay-as-you-go budget rules go?
Who is wrong here?? More misdirection follows:
“What made this so bizarre was the fact that markets were signaling, as clearly as anyone could ask, that unemployment rather than deficits is our biggest problem.”-- The Hijacked Crisis By PAUL KRUGMAN
This is not true. The markets are reacting to debt problems like the kind we got from wasting our money on such phony social programs as the CRA:
This market turbulence [world wide and initiated by the US and the EU] is a result of Congressional ‘affordable housing’ programs for ‘the poor’ and similar Nanny State Socialism in the collapsing EU and cost us probably $10-15 trillion already. It has cost the EU members about the same fraction of their GDP. This ‘affordable housing’ was some obvious social mandate and Congress passed the
From the Sage of Omaha:
“Every country that has denominated its debt in its own currency and has found itself with uncomfortable amounts of debt relative to the rest of the world, in the end they inflate,” Buffett explains. That becomes a tax on everybody that has fixed dollar investments.”[8]--Buffett Sees Massive Inflation to Handle Staggering Debt. Monday, May 4, 2009 By Dan Weil [Emphasis is mine in all quotes]
But, what does Krugman say? Let us get emotional!
“For the fact is that right now the economy desperately needs a short-run fix. When you’re bleeding profusely from an open wound, you want a doctor who binds that wound up, not a doctor who lectures you on the importance of maintaining a healthy lifestyle as you get older. When millions of willing and able workers are unemployed, and economic potential is going to waste to the tune of almost $1 trillion a year, you want policy makers who work on a fast recovery, not people who lecture you on the need for long-run fiscal sustainability.”--The Hijacked Crisis By PAUL KRUGMAN
More emotion!
“What would a real response to our problems involve? First of all, it would involve more, not less, government spending for the time being — with mass unemployment and incredibly low borrowing costs, we should be rebuilding our schools, our roads, our water systems and more. It would involve aggressive moves to reduce household debt via mortgage forgiveness and refinancing. And it would involve an all-out effort by the Federal Reserve to get the economy moving, with the deliberate goal of generating higher inflation to help alleviate debt problems.
The usual suspects will, of course, denounce such ideas as irresponsible. But you know what’s really irresponsible? Hijacking the debate over a crisis to push for the same things you were advocating before the crisis, and letting the economy continue to bleed.”-- The Hijacked Crisis By PAUL KRUGMAN
We should employ ‘mortgage forgiveness’ for illegal aliens and those with criminal backgrounds and poor or nonexistent credit ratings? And, who would take the hit for such programs? Oh! Yes! The evil banks.
We might as well watch paint dry that continue to read this propaganda from the left. We also need to note that all of the EU have abandoned the ‘stimulus’ fever from the failed legacy of Keynes and his fast-spending lackeys. The only people now following the tax and spend route are the liberal Democrats. The election is near so we can fix a lot of this.
rycK [a 5th generation Californian in exile]
Comments to: ryckki@gmail.com
[1] The Babbling Brooks of the
[2] In honor of that celebrated Communist stooge and liar and winner of the Pulitzer Prize for the
“He said that these people had to be "liquidated or melted in the hot fire of exile and labor into the proletarian mass". Duranty claimed that the Siberian labor camps were a means of giving individuals a chance to rejoin Soviet society but also said that for those who could not accept the system, "the final fate of such enemies is death." Duranty, though describing the system as cruel, says he has "no brief for or against it, nor any purpose save to try to tell the truth". He ends the article with the claim that the brutal collectivization campaign which led to the famine was motivated by the "hope or promise of a subsequent raising up" of Asian-minded masses in the
[3] Krugman Searches for His Own Truth in an Irish Mirror. He Reflects upon the Mirror and Finds Himself as Originator of the Eternal Solution. Tax and Spend.
[5] “Bear Stearns made the first public securitization of Community Reinvestment Act (
On June 22, 2007, Bear Stearns pledged a collateralized loan of up to $3.2 billion to "bail out" one of its funds, the Bear Stearns High-Grade Structured Credit Fund, while negotiating with other banks to loan money against collateral to another fund, the Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund.[13] The funds were invested in thinly traded collateralized debt obligations (CDOs) found to be worth less than their mark-to-market value. Merrill Lynch seized $850 million worth of the underlying collateral but only was able to auction $100 million of them. The incident sparked concern of contagion as Bear Stearns might be forced to liquidate its CDOs, prompting a mark-down of similar assets in other portfolios.[14][15] Richard A. Marin, a senior executive at Bear Stearns Asset Management responsible for the two hedge funds, was replaced on June 29 by Jeffrey B. Lane, a former Vice Chairman of rival investment bank, Lehman Brothers.[16]
During the week of July 16, 2007, Bear Stearns disclosed that the two subprime hedge funds had lost nearly all of their value amid a rapid decline in the market for subprime mortgages.
[6] http://en.wikipedia.org/wiki/Community_Reinvestment_Act
Community Reinvestment Act (or
[7] http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/6179033/Lehman-is-a-footnote-in-the-great-East-West-globalisation-crisis.html
[8] Buffett Sees Massive Inflation to Handle Staggering Debt.
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