Krugman Dementia Alert: Former Enron Consultant Says Jim Rogers "Has Been Absolutely Wrong About Everything"

Tyler Durden's picture

While we approach the topic of Paul Krugman with the same eagerness one approaches a clogged up, never cleaned, bathroom at a frat party that is about 50 years past its due date, (pretty much like Keynesianism) this one just put us over the top. In his latest pointless drivel on the economy, instead of reverting to his usual mode of praying to John Keynes, bitching at those who dare call for accountability and the punishment of all those, such as Krugman, responsible for what is now a $4 trillion taxpayer monetary bailout tab, and begging for trillions, then quadrillions, then quintillions, then an infinite amount of money, the Op-Ed writer has instead decided to start a mudslinging campaign against none other than Jim Rogers, the co-founder of George Soros' Quantum Fund, who has been pretty much spot on with his calls for decades.

A quick compare and contrast - Jim Rogers, whose fortune is in the hundreds of millions, contrary to Krugman, who only has a worthless statue given to him by the same idiots who thought that Obama was worthy of being awarded for his "peace" initaitives, has always had to put his money where his mouth is, while the other one's only notable claim to fame is being a consultant, and a corrupt and massively conflicted one at that, for that icon of Keynesian free markets- Enron, which Krugman could not find enough words to praise, before it was uncovered that, just like Krugman's Keynesian ideal, was a fraud, a disaster, and the biggest bankrupty at the time, in the making. We could go on and on, and recapitulate Gonzalo Lira's thesis of why Krugman is either an "Imbecile or a Fraud" but luckily our readers are sufficiently intelligent and they can figure this out on their own. Which begs the question: just how dumb does Krugman take his readers to be, when he says something as patently imbecilic as the following: "And please note that inflationistas like Rogers have been wrong about absolutely everything this cycle (and the last cycle, and the cycle before that)." While this statement is so wrong and obtuse, it merely confirms that Krugman must obviously be an idiot if he believes that any of those unfortunate enough to read his meandering garbage will not spot who has been wrong not only about this cycle, but the one before, and the one before that.

And for those who can't, below we present a Bloomberg interview with Rogers from 2008 which demonstrates that Soros' former partner got pretty much everything right...

And once again we are stumped: is Krugman really that stupid to post drivel like this on his column?

QE Madness

It has been really interesting to watch some of the commentary over quantitative easing by the Fed: while people like me see the Fed’s actions as way too timid, there’s a substantial faction out there that sees them as the end of Western civilization. Right now the most popular story on Bloomberg is Jim Rogers saying that Bernanke doesn’t understand economics, that he’s “debasing the currency.”

I’ve seen Rogers in action; he seemed to me to be confused about issues like the difference between assets and liabilities. And please note that inflationistas like Rogers have been wrong about absolutely everything this cycle (and the last cycle, and the cycle before that).

But they have their devotees. And this means that monetary policy, our only real hope at this point, must climb a wall of stupidity.

And the cherry on top is the man quotes himself to prove that he is right: if there is any confirmation that he truly deserves his nobel award, this is it.

As for the wall of stupidity, it will unfortunately never fall, as it was built over the past 100 years, held up, and constantly renovated, by people who are just as cluless, conflicted, and at odds with reality, as Krugman himself.

Regardless, as noted above, we try to stay away from clogged toilets, especially ones that are stuck in reverse. Therefore, we hope this is the last time we discuss the pathological failure that is Paul Krugman.

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Conrad Murray's picture

I read his nonsense earlier and the level of ignorance got me so worked up I sent an email and made a phone call to the Times.  If Olbermann can be fired for political contributions, surely this asshole should get the same treatment as his Statist brother for penning blatantly false jibberish.  I hope more will do the same.

macholatte's picture

Something is patently wrong when guys like Olberman and Krugman actually have an audience, when some people take them seriously. It is then that the propaganda machine shows its ugly face.

Did you ever think that making a speech on economics is a lot like pissing down your leg? It seems hot to you, but it never does to anyone else.
Lyndon B. Johnson

caconhma's picture

It is important to understand who control [note the word "control"] the America mass media.

American people are completely brainwashed by Jewish propaganda [endlessly repeated lies portrayed as established facts and truth]. Krugman is just one of their prized propaganda speakers. Do you notice that Krugman refers to his own past statements as the unquestionable proof of his present insinuations and lies?

As for the Nobel prize selection committee credentials, the members are nothing more than corrupt demagogues and liars.

frankTHE COIN's picture

The passage about " Jewish Propaganda" just reveals you as a racist that could'nt wait to somehow try to put it in an intelligent conversation.

thefatasswilly's picture

 . . . Except for the fact that almost all of the top executives who control the images on the television and movie screens are Jewish.

Pointing this out doesn't make him racist, you fucking dimwit. Trust me, I would know; I'm Chinese, the most racist race on the planet.

Shut the fuck up and sit down, you liberal fucktard. One of the main reasons America deteriorated was because of lack of racism. America is unbelievably pathetic nowadays: it's considered impolite and "racist" to point out someone's race. Incredible.

More Critical Thinking Wanted's picture

Well, I've read that Krugman piece, and here's what Jim Rogers said:

Well, capital has already been flowing into Asian economies, as you can see by the fact that they’re the world’s biggest creditors.

And Rogers was shockingly wrong about that. You cannot be the biggest creditor in the world if capital is flowing towards you ;-) You are the biggest creditor if capital flows away from you.

So exactly how and why does this prove "Krugman dementia", and not "Rogers dementia"?

DavidC's picture

Maybe I'm being slow or naive here, but the US, which has capital flying away from it (i.e. the QE money that seems to be going offshore in the flight to yield/ carry trade) is, as a result, the biggest creditor in the World? With debts of trillions of dollars?

Can't quite get my head round that one...


More Critical Thinking Wanted's picture

You got it the wrong way around - just like Rogoff.

Being a debtor (like the US) means capital is flowing towards you - you are taking capital.

Being a creditor (like China) means capital is flowing away from you - you are offering capital.

A trillion dollars in US debt is generated the following way:

Investors paid a trillion dollars to the US Government, for which trillion dollars they got a shiny promise in form of: 'T-Bond: you get payment of this amount of money in 30 years, plus interest', from the US government, in form of a piece of paper. (or, more typically these days, in form of an electronic record.)

A trillion dollars moved into USD (flowed into the country, if it was bought by foreign investors) and bought T-Bonds (and other US Government debt instruments).

tmosley's picture

You're confusing goods, currency, and debts.

GOODS are flowing to AMerica in exchange for currency.  The currency is then flowing back to the US government in exchange for treasuries.  This is why China is the world's biggest creditor even as they are the world's largest exporter.

Astute Investor's picture


I can't decide who is a bigger dolt - MCTW or Krugman.

A creditor provides capital to debtors.  However, you can't be a creditor unless a larger amount of capital (in the form of investment, trade, currency, etc.) flows to you (an INFLOW) previously.

Huge trade flows towards Asia (INFLOW).  They lend a portion of it (OUTFLOW) as a creditor to the US and debtor nations.  Just as Jim Rogers said: huge capital flowing towards Asia and they are the biggest creditor nations.


gmrpeabody's picture


I can't decide who is a bigger dolt - MCTW or Krugman.

Perhaps MCTW is one of his long time readers. Go figure.




thefatasswilly's picture

Need capital to be a creditor. Thus, if capital is flowing to you, you can lend it out as credit. When you lend it out as credit, it is not flowing away from you; someone is merely borrowing it, and paying it back with interest.

More Critical Thinking Wanted's picture

Heh, guess how 'capital flow' to China looks like? It is exactly the same: someone is crediting money to China and is getting a promise in exchange (interest in bonds and a later payback of the principal, or shares in a chinese company, etc.). China does the same when it flows capital to the US: buys US Treasuries, shares in US companies, etc.

China being a net creditor means they loan out (much!) more than they get loaned in form of 'capital flow'. So net capital is flowing away from China :-)

The thing is, Rogers goofed there on a pretty basic level of logic, and it's no big deal (you can be rich without being smart) but I find it a bit weird why ZH has to character assassinate Krugman in such a dishonest way when Krugman is right, black and white.

Cannot argue with Krugman on the merits so it's the 'pounding on the table' phase of the argument? Weird.

Astute Investor's picture

Rogers referenced Asia, which is comprised of many sovereign nations, when he made his statement about capital flows, large creditors, etc.  Why are you using only China to support your fallacious argument?

Dental Floss Tycoon's picture

Rogers is right.  Capital from commerce flows to Asia where they send it back to us by buying our treasuries and also buying up large parts of the world's resources.  The dollars that go to them are without strings attached when they flow back they come to us as debt.


I like China/Asias plan better than our's.


I will give you this: 30 year treasuries are a sucker bet.

More Critical Thinking Wanted's picture


Capital from commerce flows to Asia where they send it back to us by buying our treasuries and also buying up large parts of the world's resources.

This must be some weird type of arithmetics where the flow of capital towards China counts, but the flow of capital away from China only counts to declare China net creditor - but does not count when you try to determine where capital is flowing ;-)

You cannot have it both ways.

Rogers is right.

He is, in an alternate universe where you can ignore basic capital flow arithmetics. In our universe he is blatantly wrong.

tmosley's picture

If Krugman were right, he would be a wealthy trader.  But Rogers is the wealthy one.  QED.

Windemup's picture

You are obviously confused as to the difference between debtor and creditor.

Punderoso's picture

You falsely assume the failed progressive American model in which one is propagandized to believe that production is only accomplished through excessive borrowing.  You do not have to borrow to produce, you can create production from investment of savings.  The flow of capital is going to be based on production, and since America is producing less and less and borrowing more and more we get to enjoy the s$&t hole we are creating.  The Chinese are saving and producing and have taken their economy from out of the s$&t hole to become a major economic force.  Maybe you should spend less of your time smearing Rogers and start paying attention to what he says, you might get a clue.

Dburn's picture

Last time I looked there was 1 Jew who controlled a media company out of all of them, notwithstanding Murdoch, who fucktards like the sniveling piece of shits that wrote the two posts about would claim he was Jewish, when he is decidedly not. You motherfuckers are bigots. There is no place in society for that. Stamp return to sender to the Chinese asshole and stamp stale cracker on the other one, put em in the back of a shipping container in the tropics and let them go on a round the world vacation and see what's left when the container is opened. Fucking walking talking microscopic Dildos.

gmrpeabody's picture

Dburn..., I get a sense you're holding back. Go ahead, just get it out.

tsx500's picture, how do u  REALLY  feel  ? ? ?

frankTHE COIN's picture

Fatasswilly, He wrote that america was Brainwashed by Jewish people You colon cancered asshole.

You cant interpret english correctly. Stop trying.

israhole's picture

That accusation is getting old.  Tell us who you think owns the media?  Besides, they are the most racially aware on earth, just look at how you jumped to dispute a fact.


tmosley's picture

Post the names of the CEOs of all of the major companies.

I did this a while back for bankers and found hardly a Jew among them.  Wells Fargo was completely devoid of jews.

You should avoid the trap of collectivism.  It makes you look like a racist, and causes people to dismiss your valid views (ie that Israel is a nationalist socialist government that is very oppressive to the majority of its citizens, and a warmonger to boot).

dehdhed's picture

The passage about " Jewish Propaganda" just reveals you as a racist that could'nt wait to somehow try to put it in an intelligent conversation.

please forgive my ignorance, but are jews a race?  i just thought it was a religion or a nation.   i'm going to assume they are a race and i'm misinformed and didn't realize it was an exclusive religion/nation lacking in diversity.   the statement made about racism makes about as much sense to me as someone getting called a racist for criticizing the catholic church.

please don't take offense to this, but in my observations it seems the ones flinging accusations of racism are very often the most obvious racists i've ever seen.   and it makes me wonder ....

merehuman's picture

frank reveals himself as one of the brainwashed! Jewish faces control the Media. That is a fact and true. Top positions in government and finance are Jews. Does presenting honest facts make someone a racist? I think not. It is the way it is and if you speak out too loud dissappear . 

Are all jews bad or zionist ? NO . Just the ones in suits and power.

nobita's picture

the nobel committee is not corrupt demagogues and liars. they are just pretty stupid and fell hook, line and sinker for the fraud that is Obama.

the reason Gore, Krugman and Obama has won prizes is because everyone in scandinavia really hated George Bush more than you can imagine.

well now the prize is a joke, a source of great pride for us swedes turned to shit. sad really.

Popo's picture


FYI -- for anyone who missed the fun:  Krugman has already been completely discredited on his own blog. The fireworks have mostly died down now that the teacher has gone into overdrive moderating his blog comments, but here's a recap of what went down a couple months ago:

In a nutshell: Krugman made the mistake of entering into a debate with his blog-commenters, and got completely destroyed intellectually. The whole thing deteriorated into laughs and guffaws. Krugman has been discredited. Period.

nmewn's picture
"Paul Krugman has spent his career as a pundit advocating that government bureaucrats and political process replace markets. He knows that there is a large literature that says that this is a bad idea. That literature is transparently relevant to Krugman's only policy proposal. And yet Krugman has not read it...and admits that he has not read it, without embarrassment.


By July, Krugman had lost his "Battle of the Blog." On July 23, Latrina commented, "Who is this Sean from Florida? He takes everything that [the] Professor [says] and shreds it, piece by piece. He shouldn't be allowed to post his comments on this blog since he seems to be winning all the debates. We progressives need to stick together and embellish our talking points without someone from the outside pointing out fallacies in our ideology."


Those damn Fla. Crackers are at it again ;-)

New_Meat's picture

dude-we need the link so we can pile on-Ned

nmewn's picture

It's from Popo's above...happened back in the summer. Krugman & his wife no doubt, are now reduced to monitoring his blog 24/7 and deleting non-party views.

Very...what's the word I'm looking for...oh yeah...FASCIST! ;-)

IQ 145's picture

 Good for you. You're right. Krugman really is mind-boggling.

maddy10's picture

Feel sorry for krugman-Poor guy doesn't know the difference between spending and investment.

He simply ignores the things happening around him

Asia has been investing a third in dollars but the rest in useful infrastructure, factories and new technology.

What does US have to show for nearly 40 trillion debt[public+private+individual] of last 10 years- Big houses, shiny cars and lots of smoke

[sic] he is so predictable-his next blog'll be-"I told ya QE2 will fail coz it is too small"

beanieville's picture

Actually, you can't really say Jim Rogers is right just because gold is going higher.  Just about every asset class in the stock market is also moving higher.  Let's not pick and choose to support our contentions.


Jim Rogers said the economy would collapse this year.  He said the same thing last year after the march lows of 2009.  He was thoroughly wrong.


He's a smart guy, that's a given.  But smart plus wrong is still wrong.

Clayton Bigsby's picture

I think it would be really awesome if Barrack appointed Krugman the next head of the CEA.  Then I would know for sure that the end is near, sell all my shit, and prepare to meet the Mayan gods...

MsCreant's picture

But otherwise, you are not sure we are screwed, or you have hope, or...

chopper read's picture

hey, Conrad.  i have a sense that you are a relatively young individual.  however, your level of commitment and competence is immense.  keep talking with your friends.  i admire how you think.  you're a beacon of truth.  props to you.  


Al Gorerhythm's picture

Conrad, don't you realize that they know. It's not too hard to understand that these guys are sociopaths. They know; they just don't give a fuck, about you. The only alternative is that they are the true believers, Hitler in the bunker, Comical Ali in Baghdad, Bush on the aircraft carrier, "Mission Accomplished".
Either way, they are madmen and this needs to be more than ignored. Look what they have done to our once great country. We relied on our office bearers to guide us and uphold the constitution but they have held office under false pretenses. After Nov 3, nothing will change. Hydra lives and breathes. Cut off one head and the other grows.

damage's picture

Therefore, we hope this is the last time we discuss the pathological failure that is Paul Krugman.

God, I wish.

Lets Hang Parliament's picture

Maybe Krugman should go on a round the world motor bike tour too. That would keep him off our screens for a while!
The Mongolians love goat meat so maybe he wouldn't come back...ever! Maaaarvellous!

Printfaster's picture

If this is true:

Therefore, we hope this is the last time we discuss the pathological failure that is Paul Krugman.

If Krugman is truly a failure, then we are doomed, since in government failures are always promoted until they die or retire.





nmewn's picture

Krugman cannot be allowed to pass quietly into that good night.

He has shilled for too long and propagandized too much to not have his place in the Gallery of Quackery.

Cheyenne's picture

Paul Krugman, what a jackass.

DoChenRollingBearing's picture

Jimmy Rogers (and all of us really) are proof that no one can be right 100% of the time.

Paul Krugman is proof that one can be WRONG 100% of the time.

Cheyenne's picture

Thanks for having the balls to say that shit out loud. I agree.

The Navigator's picture

I also Ag ree. Tell us about your vacation to the South Pacific when you have time. Good to see you back DCRB.

DosZap's picture


bro, look who the maggot is surrounded by.

Weekend(Years at Bernies) Nanke, and Timothy Geiiiithner.

They (if ONE had the power),maybe Paul will get a shot, SHOW this entire segment on a Big Screen, to ALL members of the House & Senate.

That would maybe wake some of them up......20-50?