BN 11:58 *NOBEL LAUREATE KRUGMAN COMMENTS IN BLOOMBERG TV INTERVIEW
BN 11:58 *KRUGMAN SAYS FED SHOULD DO MORE QUANTITATIVE EASING
BN 11:58 *KRUGMAN SAYS FED SHOULD HAVE 3%-4% INFLATION TARGET LONG TERM
BN 11:58 *KRUGMAN SAYS U.S. GOVERNMENT NEEDS TO `GO OUT AND HIRE PEOPLE'
BN 11:58 *KRUGMAN SAYS SECOND MAJOR STIMULUS PLAN PROBABY WON'T HAPPEN
It's amazing how Krugman believes that Money Central Planners (the Fed), along with State Central Planners (the Gov) can create growth, by printing money, stealing from their people, and overpaying people to do produce stuff or services that nobody want in the first place (otherwise, they would be buying them on the free market, without the need from the Gov. to intervene).
Let's imagine that what Paul Krugman could work. Then, why not have 100% of the people be on government payroll, and their salaries of $1,000,000 per head being printed by the Fed every month. This way, we have sold the problem of unemployment, and also of poverty at the same time.
Also, we could save the retirement issue by just having them do nothing and still get their salaries. I'm guessing that hasn't reach Krugman's extremely competent mind yet. He might find it's a good idea, within a year or two?
It's good to see that some of the academics have not completely lost touch with the real world, and are even able to oppose such non-sense. It's the case of Niall Ferguson. You'll not often see me siding with him, but I do support him in this particular statement:
What the Greeks discovered you are fine until you are not fine with the bond market and if you have a non-credible fiscal strategy of borrowing a $1 tillion a year for the rest of time, never ever again running a balanced budget, at some point the markets are going to get spooked, and I think that point is nearer than Paul Krugman believes. Nothing would spook the markets more than for Paul Krugman's advice to be accepted by the Obama administration. That might well be the trigger.It's time to read again this post I published a couple of days ago:
"The modern democratic State is essentially a means for coercively redistributing income from producers to politicians, bureaucrats, and special interest groups" — Murray Rothbard
Credits to ZeroHedge, where I found both statements.