Originally written 1.05.2010
Abstract: Paul Krugman
gives new meaning and depth to the word tautological as he calls on our inept
government to spend more money while ignoring the conseq
uences of inflation and
currency debasement. Our currency may collapse as did Iceland
The
word tautological[1]
would be quite obscure if not for political propaganda machines like the New York Times and
some of their sorrier sisters. Their writers[2][3][4][5][6][7][8][9]
and staff[10]
thrash about in an ideological competition to see if any are noble enough to
match the elegant essays of their honored Pulitzer Prize winner Walter Duranty.[11]He
bequeathed to them a certain literary mantle of invincibility and indelible
fame when the Times
published his leftist-authorized political lies and received uncultivated acclaim
from the depression-era masses who could now openly celebrate the leadership of
Josef Stalin while he happily murdered millions. Duranty taught the NYT
how to be pure propagandists rising well above the stature of Eugene Debs as
busy workers who must pound upon their rusty anvils and hammer out narrow
ideological snippets of propaganda from a narrow agenda and thus turn or twist
any news event into some new and pressing validation for bugger government,
retreat from wars against Marxist monsters or Islamo-Fascists[12]
and prattle on endlessly about the undying splendor of higher taxes. Most
pedestrian keyboard plunkers on the Times’ staff cannot give us the inkling they can synthesize
even a modicum of the political magic of the Duranty essence because of their
manifold ineptitudes and transparent sophistry of their contributions, but they
try. Paul Krugman may be an exception
as he has been given a special warrant from the Peace Loving Swedes [dirty gun
peddlers and mass murderers in cahoots with their inbred lackeys the
Norwegians--now EcoQuislings.]
in the form of the phony Nobel Prize[13]
to continue to turn the old Marxist crank.
As
an exercise, a search upon the op-ed piece today produces a telling set of
words that appear and another set that do not appear although they should to
address the consequences of some governmental act:
Words
and phrases missing from this opinion: tax,
responsibility, excessive taxation, inflation, debasement, tax cuts, government
blunders, mistakes, corporate hiring, etc.
Words
and phrases found in this piece:
stimulus, G.D.P., growth, spending, monetary tightening.
We
can see from the lists that the point of the current tome is to avoid objectivity
or even the appearance of a comprehensive or responsible analysis of the
economic picture and to push spending. This piece is stogy advocacy and not
related to economics as we might presume.
We find, as always, that the only important factors to be discussed by
this near-bankrupt paper are: enlarging government by spending and taxation or
by taxation and spending whichever case is the most feasible at the moment.
Some examples of the
current truncated logic:
“Here’s what’s coming in economic news: The
next employment report could show the economy adding jobs for the first time in
two years. The next G.D.P. report is likely to show solid growth in late 2009.
There will be lots of bullish commentary — and the calls we’re already hearing
for an end to
stimulus, for reversing the steps the government and the Federal
Reserve took to prop up the economy, will grow even louder.”[14]--That
1937 Feeling By Paul Krugman Op-Ed Columnist Published: January 3, 2010 [Emphasis is mine in
all quotes.]
There
is no useful information offered here—only the setup for the warning that the
stimulus will be retracted and that the Fed will be contracting the money
supply probably with higher interest rates. This is a serious threat to the
growth of big government and as such is the basis of this article.
“But if those calls are heeded, we’ll be repeating the great
mistake of 1937, when the Fed and the Roosevelt
administration decided that the Great Depression was over, that it was time for
the economy to throw away its crutches. Spending was cut back,
monetary policy was tightened — and the economy promptly plunged back into the
depths.” --That 1937 Feeling By Paul Krugman
I
haven’t taken the time to research all the krugmanical whines and blather about other
administrations making errors, or the same errors that Krugman is advising [FDR, LBJ,
Jimmy Carter, Clintons before Newt Gingrich cut off their money] but one thing
is clear: when nations take on massive debt that approaches 100% of our G.D.P.
as the Obama admin and Congress are doing then this is apparently not a mistake. The world historical facts about sovereign
defaults and financial crises dating back 800 years show otherwise.[15]We
are forced to think in 1937 terms where debt crushed several economies, but in
this instance, with the threat of not bloating government at hand, we can
selectively pluck out reasons to spend and spend and ignore the increase in the
money supply M2 that will surely lead to massive inflation. Ignoring the fundamentals of economics, as is
the Krugman
custom, we can just spend and spend and spend our way to prosperity as California
Continuing right on with
the fairy tales:
“Which brings us to the still grim
fundamentals of the economic situation.
During the good years of
the last decade, such as they were, growth was driven by a housing boom and a consumer spending
surge. Neither is coming back. There can’t be a new housing boom while the
nation is still strewn with vacant houses and apartments left behind by the
previous boom, and consumers — who are $11 trillion poorer than they were
before the housing bust — are in no position to return to the
buy-now-save-never habits of yore.” --That 1937 Feeling By Paul Krugman
Krugman deftly slides past the
very fact that this depression was caused
by debt[19]
and we are in a debt-driven deflationary spiral[20]
that might be ending and also might have been temporarily postponed a
depression by doubling our money supply by the Fed. We might just be rewarded with the second half of this depression this
year or next that was due to the abuse of credit and a mere 3-5 trillion
dollars lost from ‘affordable housing.”[21]
We have two more bubbles to get around: commercial credit and consumer credit
cards. [22]
The
point here must be that a recovery must depend solely upon the consumer,
which is true in a full employment sense [95% employed], and also upon a
restoration of the housing prices to 2007 levels where, we must presume, the equity credit was
generated for such consumer spending. Credit = money. The comment that we are “are $11 trillion poorer” is only
partially true because the Fed may well have spent this much already in their
rescue attempts. That more than doubles the money supply and has done nothing
for the housing market or the jobs market as we are still at 10% official and
17% actual unemployment. Obama’s stooges promised a turnaround and
unemployment below 8% if we used their plan:
The Christine
Romer Prophecy:
“…, even
with the large prototypical package, the unemployment rate in 2010Q4 is predicted to be
approximately 7.0%, which is well below the approximately 8.8% that would result
in the absence of a plan.”[23][24]--CNSNews.com Monday, July 06, 2009
Only
7 months ago?? The several Obama stimuli have failed to do much and are jokes
in the international economic community and include cash for clunkers[25],
shovel-ready bridge projects with no shovels and other follies such as green
jobs. The obvious and historical solution here is tax cuts for small businesses
but that is an obscene topic for the left and way beyond the boundaries of
discussions with leftist advocates who pretend at economics theory.
The tautological pitch:
“The Obama fiscal stimulus plan is expected
to have its peak effect on G.D.P. and jobs around the middle of this year, then
start fading out. That’s far too early: why withdraw support in the face of
continuing mass unemployment? Congress should have enacted a second round of stimulus months ago,
when it became clear that the slump was going to be deeper and longer than
originally expected. But nothing was done — and the illusory good numbers we’re
about to see will probably head off any further possibility of action.”
--That 1937 Feeling By Paul Krugman
“Will the Fed realize, before it’s too late,
that the job of fighting the slump isn’t finished? Will Congress do the same?
If they don’t, 2010 will be a year that began in false economic hope and ended
in grief.” --That 1937 Feeling By Paul Krugman
Isn’t
this clever! Krugman
ignores the Romer
Promises and fails to even mention tax relief for small business and
fails to advise us on the massive costs of the cancerous health care monster
that Congress is working on.
With Krugman
it is always tax and spend or, to be novel, spend and then tax.
rycK
Comments
to: ryckki@gmail.com
[2] Krugman Calls to Pass
Bills and We can Merely Unpass Them Later.
[3] Krugman Offers Us Naïve Fairy Tales about Financial Disasters
and the Lessons We Should Learn from them.
[4] Herbert of the New York
Times Reinvents Manufacturing for our Amusement. Detroit
[5] The NYT ’s Frank the Crank Mumbles about Missing Links.
Typical propaganda http://rycksrationalizations.blogtownhall.com/2009/11/18/the_nyt%E2%80%99s_frank_the_crank_mumbles_about_missing_links_typical_propaganda.thtml
[6] The Babbler and the Old Brown Lady of the NYT Babble about Election Tealeaves.
Liberalism Prevails in all Variants.
[7] Quoth the Old Red Lady
of the NYT : Mirror Mirror on the
Wall! Do I see My Party and Myself in My
Writings?
[8] The Old Brown Lady
of the New York Times [Old Gray Lady] Mumbles Dootifully about the
Criminal Good Time Charlie Rangel
http://rycksrationalizations.blogtownhall.com/2009/10/08/the_old_brown_lady_of_the_new_york_times_[old_gray_lady]_mumbles_dootifully_about_the_criminal_good_time_charlie_rangel.thtml
[9] Friedman Bawls about
Balls and Can Show Nothing. EcoNazism and Propaganda at Work.
[10] Third
World Grunts and Gropes for Climate Scam Money while the New York Times ‘Hopes’
[11] In honor of that celebrated Communist
stooge and liar and winner of the Pulitzer Prize for the NYT . The color RED is used in my essays in honor of Walter Duranty,
a saint, if there could be one, in the Marxist Archives of Honor.
“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 Soviet Union which
only history could judge.”
http://en.wikipedia.org/wiki/Walter_Duranty
[12] Islamo-Fascists: The new ally of the
liberals?? http://tabletalk.salon.com/webx/.773b56cd/3625?14@877.TvX2akZqf5y@
[13] Obama’s Phony Nobel
Peace Prize and the Role of International Leftist Politics.
Obama
Receives the Ultimate Insult: The Swede's Bozo Prize for Leftist Stooges.
Krugman
Receives the Ultimate Insult: The Swede's Bozo Prize for Leftist Stooges.
[14] That 1937 Feeling By Paul Krugman Op-Ed
Columnist Published: January
3, 2010 http://www.nytimes.com/2010/01/04/opinion/04krugman.html?em
[15] Read the new book This Time is Different: Eight Centuries of Financial Folly by Carmen M. Reinhart and Kenneth Rogoff for a discussion
about sovereign. It is not amusing.
[16] The Road to Social
Success, Peace and Justice: California
[17] As Predicted: California
[18] Copulating
with Coprolites: The Unveiled Mechanism of Governance by Progressive Liberalism
in California
[20] Protectionism: The
World Economies Circle Their Wagons
[21] Affordable Housing
Follies and the Intentional Corruption of Supply and Demand Economics
[22] The
Bubble that will Burst Higher than all Previous Bubbles: Depression Looms as
the Dollar Crashes.
[25] Imaginary Numbers in the Starry Skies and the Quest for
a Crystal Ball: Our Government Announces Job Creation Success with their
Stimulus Program!
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