Tyler Durden's picture

Paul Krugman Is Wrong About The UK And Borrowing

Krugman wants his US readers to believe that all proper economists now agree that cutting deficits was a bad mistake, and it’s only self-interested finance types and ideologically-motivated politicians and think-tankers that take a different view. But that’s nonsense. Just think about it: “Everyone agrees that austerity was a mistake”… apart from every government in Europe except the Greeks, and the economists and many of the civil servants that advise them. Krugman and his fan-club do not constitute all serious opinion, much as they might like to regard themselves that way. It’s all very nice sitting in a US university office preaching to the Europeans (or, indeed, preaching in the New York Times)

Sprott Money's picture

Dr. Mark Skousen: I’ve Been Fighting a Battle Against these Ideas – the ‘Paradox of Thrift’ is a Myth (Sprott`s Thoughts)

According to Austrian economists like Dr. Skousen, consumption and consumer spending are not the main drivers of economic growth. What really drives an economy are investments and innovation from businesses.

Tyler Durden's picture

World's Oldest Central Bank Asks Paul Krugman To Shut Up

Deputy Riksbank Governor Per Jansson "doesn't know why" Paul Krugman insists on equating Sweden with Japan but thinks "mystery" may be related to Krugman doing too much writing and not enough reading.

Tyler Durden's picture

The New Normal Of "Anything Goes" And "Nothing Matters" Is Turning Lethal

The consequence will not be eternal virtual prosperity, but rather a wrecked accounting system for the operations of civilized human life. We’ve stepped across the event horizon of that consequence, but we just don’t know it yet. Our bet is that we start feeling the effects sooner rather than later; and when it is finally felt, all the Kardashian videos in this universe and a trillion universes like it will not avail to distract us...

Tyler Durden's picture

Paul Krugman Is The Brian Williams Of Economics Bloggers

Paul Krugman may (or may not) know a lot of economic theory and is a very clever writer, but you should never ever trust him to recount tales of battles between Keynesians and other schools of thought. His misrememberings in this realm are so astounding that they would impress Brian Williams.

Tyler Durden's picture

The Austrian Solution to Greece

Fill In The Blank: "Greece will achieve economic success when ____"

Tyler Durden's picture

Forget The $1 Trillion Platinum Coin - Here's The $10 Trillion Stone Coin

If creating money is such a good idea, why not let all of us do so? Why not let everyone print as much as they need to get what they want? The answer is of course runaway inflation, as money that can be issued by everyone in unlimited quantities is instantly rendered worthless. The point we're making with the $10 trillion stone coin is that if money is a social contrivance, then it should be distributed to those creating goods and services, not those with influence over easily-bought politicos.
Tyler Durden's picture

5 Things To Ponder: Salmagundi Introspections

This past week has been a virtual tennis match watching the evolution of the Greek bailout negotiations. No Deal, Deal, No Deal, Deal. However, despite the fallout that would likely come from a Greek "exit," the markets have largely managed to ignore the risk and hit an all-time high this week. Market valuations, bullish sentiment and complacency are all pushing higher as the focus remains on the ignition of the ECB's QE program as a stimulus for the markets. In fact, this is so much the case that the net percentage of managers overweight Eurozone equities is at the highest level on record.

Tyler Durden's picture

Guest Post: Bitcoin - The Effete Act Of Rebellion

"Using Bitcoin is an effete act of rebellion, a weak signifier of resistance like wearing a hoodie or getting a tattoo that’s well covered by your work clothes. Bitcoin is fashion, more than a fad but less than lasting." Strong words. Let’s dig in.

Tyler Durden's picture

Today's Financial Thermopylae Beckons - But Don't Count On The Greeks

The global financial system desperately needs a big, bloody sovereign default - a profoundly disruptive financial event capable of shattering the current rotten regime of bank bailouts and central bank financial repression. Needless to say, Greece is just the ticket: A default on its crushing debt and exit from the Euro would stick a fork in it like no other. But don’t count on the Greeks.

Tyler Durden's picture

The Catastrophic Costs Of Extend-And-Pretend Are About To Crush Europe

Extending imprudently massive loans to marginal borrowers always plants the seeds of disaster, and extending and pretending turns a potentially containable disaster into an uncontainable financial calamity. Yet this is the game plan of policymakers everywhere, from Europe to the U.S. to China--extend enormous loans to marginal borrowers and then mask the inevitable defaults with extend-and-pretend policies that vastly increase the size of the debt. By the time extend-and-pretend finally reaches its maximum limits, the resulting implosion is so large that the shock waves topple regimes, banks, currencies and entire nations.
Tyler Durden's picture

Apocalypse How? Scientists Unveil 12 Risks That Threaten Human Existence

From 'Armageddon' to 'Day After Tomorrow' to 'Independence Day', many have speculated as to the eventual demise of human life on the planet but - according to Dennis Pamlin of the Global Challenges Foundation, no scientists had "compiled a list of global risks with impacts that, for all practical purposes, can be called infinite,” until now. The following list of 12 possible ways that human civilization might end - ranked from least to most likely, come with a warning, "we don’t want to be accused of scaremongering but we want to get policy makers talking." We suspect Paul Krugman will be happy at the economic growth potential...

Tyler Durden's picture

Dismantling Krugman's "Debt Doesn't Matter" Mantra

With the global economy sinking, and worries about it beginning to resound beyond just inconvenient bears, Paul Krugman has been leading the critique against what he sees is a disastrous and ignorant deformation against debt. Krugman is trying to argue that because government debt did not hinder private wealth creation we should use government debt to create private wealth. The cart is not even before the horse using this “logic”, as the cart and horse aren’t even on the same road. Paper wealth isn’t wealth, and government debt isn’t “free money.” There are consequences to both which their proponents never include in the “prospectus.”

Tyler Durden's picture

The Reason For Hyperinflation-phobia

In 1923 Hitler said, Believe me, our misery will increase. The scoundrel will get by. But the decent, solid businessman who doesn’t speculate will be utterly crushed; first the little fellow on the bottom, but in the end the big fellow on top too. But the scoundrel and the swindler will remain, top and bottom. The reason: because the state itself has become the biggest swindler and crook. A robbers’ state! Hitler wasn’t talking about hard money, he was talking about excessive money printing by a robber state. Krugman himself echoes these words, "It’s basically about revenue: when governments can’t either raise taxes or borrow to pay for their spending, they sometimes turn to the printing press." Out of control government that can’t borrow or tax enough to pay its bills? Zimbabwe, Iran, Venezuela... what country is next?

Tyler Durden's picture

Guest Post: That Feeling That Something Dramatic Is About To Happen

There is intense debate going on in the worlds of economics, politics, and finance as to whether we will, in 2015, experience the mother of all stock market crashes or whether, instead, we will float along ever higher on the happy cloud that has been making at least some people rich over the last few years (or whether, for a third possibility, we will just muddle along somewhere in the middle). Beyond the diatribes from the punditocracy, there is a mood – maybe it is idiosyncratic – but there’s the feeling that something dramatic is about to happen. I mean, a snowstorm hits and the local supermarket runs out of bread?! Are we all rehearsing for something here?

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