• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Marc Faber: "Paul Krugman Should Go And Live In North Korea"

Tyler Durden's picture




 

If there is one thing better than Marc Faber providing a free, must-watch (and listen) 50 minute lecture on virtually everything that has transpired in the end days of modern capitalism, starting with who caused it, adjustable rate mortgages, leverage, why did the Fed let Lehman fail, why was AIG bailed out, quantitative easing, Operation Twist, where the interest on the debt is going, which bubbles he is most concerned about, a discussion of gold and silver, and culminating with his views on a world reserve currency, is him saying the following: "The views of the Keynesians like Mr. Krugman is that the fiscal deficits are far too small. One of the problems of the crisis is that it was caused by government intervention with fiscal and monetary measures. Now they tells us we didn't intervene enough. If they really believe that they should go and live in North Korea where you have a communist system. There the government intervenes into every aspect of the economy. And look at the economic performance of North Korea." Priceless.

50 minutes of Faberian bliss:

Courtesy of TheBubbleFilm

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Thu, 12/13/2012 - 23:23 | 3061773 Dr. Engali
Dr. Engali's picture

It kills me how they make a big deal out of it. So let me get this straight .......If we hit the fiscal cliff we get higher taxes and spending cuts....but their solution is going to be ...drum roll please....higher taxes and spending cuts....fucking idiots.

Thu, 12/13/2012 - 23:36 | 3061831 Mr. Magoo
Mr. Magoo's picture

Its actually a false economy in other words a great big Facade

 a false, superficial, or artificial appearance or effect

http://www.activistpost.com/2012/12/10-signs-we-live-in-false-economy.html

Fri, 12/14/2012 - 11:25 | 3062596 Element
Element's picture

MMT Jack ... you're soaking it it ... hmm ... pretty green ...

Thu, 12/13/2012 - 23:05 | 3061762 lolmao500
lolmao500's picture

I say you arrest Krugman, Bernanke and all his fans and you deport them to NKorea.

Thu, 12/13/2012 - 23:05 | 3061765 ball-and-chain
ball-and-chain's picture

Marc Farber sounds like Dr. Evil.

I wonder if he moved to Thailand for the girls.

Lots of old men with funny accents live in that country.

He fits right in.

Peace.

http://www.angrysinner.blogspot.kr/2012/12/yesterday-dragon-lady-cooked-barbecue.html

Thu, 12/13/2012 - 23:17 | 3061787 AssFire
AssFire's picture

NO. Take him to Detroit!

http://www.youtube.com/watch?v=bVDDYQlmq0w

 

Thu, 12/13/2012 - 23:30 | 3061815 icanhasbailout
icanhasbailout's picture

I hereby volunteer to pack Krugman's parachute

Fri, 12/14/2012 - 09:58 | 3062345 GMadScientist
GMadScientist's picture

Well make sure you fill it with the worst coke you can find.

Thu, 12/13/2012 - 23:30 | 3061816 Unprepared
Unprepared's picture

OK. I'm gonna go and throw this regardless of the expected down arrows.

 

I think the reason why the Bernank has hooked his printer to Employment and Inflation targets is a way for him to say "fuck you, sincerely" to Congress. In other words, knowing there is no exit strategy from his policies, he's trying to create a personal exit strategy to save his legacy by tying his policy to something that Congress, the Fiscal Cliff and Businesses in general can share the blamed for: "I didn't print that, someone else made me do it".

 

Of course, most probably, there might be more reasons than one:

 

1 - Create an equity and bonds supportive environment where badder news is gooder news (good strategy if news are expected (to be allowed) to get worse)

2 - Help the Obam' get his way and to put a floor under equities if we go over the Cliff (going over cliff > worse fundamentals expected > go to step 1)

3 - Good strategy if goalseeked unemployment rate waterboarding has come to its useful limit (inflation rates are much easier to manipulate)

4 - Create a managed crisis period (~ 3 mos) where all the problems (fiscal cliff, unemployment, ...) can be superfecially defined, brought under flickering light and optically dealt with and resolved once and for all so that the sky is the limit afterwards (for the DOW) - think Europe since last crisis.

Thu, 12/13/2012 - 23:58 | 3061873 Encroaching Darkness
Encroaching Darkness's picture

"I think the reason why the Bernank has hooked his printer to Employment and Inflation targets is a way for him to say "fuck you, sincerely" to Congress. In other words, knowing there is no exit strategy from his policies, he's trying to create a personal exit strategy to save his legacy by tying his policy to something that Congress, the Fiscal Cliff and Businesses in general can share the blamed for: "I didn't print that, someone else made me do it"."

Let's imagine for the moment Bernanke knows and understands that he cannot win by printing forever - that having seen Weimar Germany, Zimbabwe and recent Argentina times X he has come to realize the truth. Let us further imagine he realizes that he cannot escape blame if the economy craters, the inflation rates shoot to the moon and the currency collapses. What else could he do?

The truth may be that he now sees himself as a victim - running a fiat currency when an out-of-control Congress and Administration spend endlessly, leaving him awash in endless debt that he must securitize in order to keep the Ponzi going. Further, the eat-the-rich policies of this Administration (combined with crony capitalism, which creates few jobs and few opportunities for growth) lead inexorably to debt-driven failure and societal collapse. What can he do?

Bernanke deserves whatever happens to him, and I'm thinking dark alleys and days of torture at best, with being "vanished" along with his family and friends and never seen again at worst. But if he took this job thinking he was dealing with sane, arguable people who could be persuaded to act rationally in logical argument along real world supply-and-demand economics lines, he was lied to and used.

We are screwed; those in power are not in control, and are finding that out. Once the really bad effects of overspending and budget deficits hit, it's not going to get better. Best to admit defeat, cut government spending until it matches real revenues, and take the pain now - delay will not reduce it, and ignoring it will not make it go away.

Fri, 12/14/2012 - 06:43 | 3062091 francis_sawyer
francis_sawyer's picture

Yeah ~ Poor little ol innocent 'Shalom', stuck between a rock & a hard place & surrounded by evil out of control wrongdoers lurking at every corner...

I see a Spielberg movie in the making... You know ~ to get the story RIGHT... For history & all...

Fri, 12/14/2012 - 07:17 | 3062109 Hobbleknee
Hobbleknee's picture

Bernanke does what the puppet masters tell him, and is paid handsomely to do so.  I doubt he gives a flying fork what anyone thinks, and he won't vanish because the people who wish him harm don't know where he lives.

Thu, 12/13/2012 - 23:32 | 3061819 wisefool
wisefool's picture

This is an old interview, talking about the election in the future tense.  (mark roughly 30:00) Something I think is timely, is this week on abc MSM mary matalin and james carvill were on broadacast T.V. and she handed krugman the hat in the only way you can do to a guy with a phd in keynesianism and a nobel peace price (sic)

regarding the fiscal cliff "Are you a potelemist, or an economist?"

Thu, 12/13/2012 - 23:37 | 3061829 Yes_Questions
Yes_Questions's picture

 

 

government intervention with fiscal and monetary measures

Funny, I don't seem to remember any part of the US's 11 carrier groups postured or positioned to influence the FED.

 

Along with not using the word BUY when it comes to the FEDs QE4EVA initiatives, lets please also stop talking about how the government intervenes with monetary anything.

No, I am not trashing Faber, BTW, just the lingo.

Thu, 12/13/2012 - 23:39 | 3061840 Yen Cross
Yen Cross's picture

Krugman should go pitch a tent on the "Diaoyu Islands", and hand out twinkies to the Chinese and Japanese patrol boats that pass by...

Fri, 12/14/2012 - 11:13 | 3062603 Element
Element's picture

He could pull a new moon out of his arse and they'd both a have enough sterile rock to enjoy.

Thu, 12/13/2012 - 23:41 | 3061845 Mr. Magoo
Mr. Magoo's picture

Lets take a look at Japan

Japan's debt, fiscal deficit not sustainable: IMF(AFP) – Feb 8, 2011 

"A rapidly aging population, entrenched deflation and a feeble economy have made it hard for lawmakers to curb borrowing, with years of pump priming creating a debt load that is well on course to exceed 200 percent of GDP"

That was a year ago with no end in sight I am sure it will end well SARC

 

Fri, 12/14/2012 - 11:15 | 3062605 Element
Element's picture

Complete this sentence:

 

"Don't under-estimate the power of ..."

Thu, 12/13/2012 - 23:45 | 3061851 Tsar Pointless
Tsar Pointless's picture

I want to know how North Korea is "communist".

Do you mean to tell me that the ruling elite of North Korea share the same income and way of life as do the ordinary citizens of that country? Because THAT is what true communism entails.

The same with China. The same with the old Soviet Union. Explain to me - a political science major and economic theory wonk - how these countries ever were or are communist.

Hint: YOU CAN'T.

A country/party can call itself whatever it wants to. It doesn't make it so just because it does. The Republican Party isn't for a "republican" form of government, any more than the Democrat Party is for a "democratic" form of government.

They're labels. Self-ascribed labels. Which makes them suspect from the beginning.

You ask: Then what is the best form of government? I reply: One without political parties.

Stick that in your Founding Fathers hat and smoke it.

Fri, 12/14/2012 - 00:16 | 3061898 The Swedish Chef
The Swedish Chef's picture

You mean like when people say that the system we got in the western world is capitalism?

Fri, 12/14/2012 - 00:22 | 3061905 Tsar Pointless
Tsar Pointless's picture

Precisely.

Because it isn't. It's corporatism, i.e., fascism. The same as it has been since the 1870s.

Did I just pop some minds there? I truly hope so.

Oh, but you say we fought fascist regimes early in the 20th century? Tell me - who fared the best after those wars: The people, or the corporations?

Hint: It wasn't the people.

Fri, 12/14/2012 - 06:48 | 3062093 francis_sawyer
francis_sawyer's picture

Everything is just glorified serfdom in one form or another...

Fri, 12/14/2012 - 02:10 | 3061983 littleguy
littleguy's picture

J. H Christ. Communism is a myth. It's the practice that actually matters. And this entails that the 'tards in charge take the piss. The prols are an unfortunate waste of space.

Fri, 12/14/2012 - 06:50 | 3062094 smacker
smacker's picture

Thanks for exposing the deep duplicity within communism.

Communism never was a model of equality, fairness, justice or anything like that. That was (and still is) just claptrap & pap to fool the masses. It was only ever a model where one gang of power-crazed, despotic thugs seize control of all other groups of thugs, slaughtering them as necessary to eliminate dissent. The educated and intelligent are always the greatest risk to the commie thugs, so they become the first targets for elimination.

Fri, 12/14/2012 - 10:05 | 3062374 GMadScientist
GMadScientist's picture

Capitalism never was a model of competition, efficiency, or anything like that. That was (and still is) just claptrap & pap to fool the masses. It was only ever a model where one gang of power-crazed, despotic thugs seize control of all other groups of thugs, leveraging them as necessary to eliminate competition. The educated and intelligent are always the greatest risk to the capitalists, so they become the first targets for assimilation.

Fri, 12/14/2012 - 11:25 | 3062665 smacker
smacker's picture

Wrong. You're conflating open free market capitalism which is none of those things -vs- the crony capitalism that is now widely practiced across the world. Directly due to corrupt political elites and their central bank puppets becoming involved and creating what really amounts to state-corporate capitalism, ie fascism.

Fri, 12/14/2012 - 10:02 | 3062355 GMadScientist
GMadScientist's picture

Some animals have always been more equal than others.

 

Thu, 12/13/2012 - 23:46 | 3061854 Hedgetard55
Hedgetard55's picture

Faber summarized everything the average hedgetard here knows and has been saying for 3 years. Maybe he posts here? "Dr. Engali" perhaps? Or "akak"? 

Thu, 12/13/2012 - 23:52 | 3061862 magpie
magpie's picture

Won, bitchez

Thu, 12/13/2012 - 23:59 | 3061875 Dr. Gonzo
Dr. Gonzo's picture

They'd love North Korea. I heard they have they're own version of the Clown buck there. 

Fri, 12/14/2012 - 00:08 | 3061887 smiler03
Fri, 12/14/2012 - 00:25 | 3061910 A Dollar Short
A Dollar Short's picture

What a crock of Krug, man.

 

Fri, 12/14/2012 - 00:47 | 3061928 yogibear
yogibear's picture

Krugman makes a good socialist. He would have comfortable in the north Korean system. A government like that could polish his ego by giving him awards all the time.

Fri, 12/14/2012 - 00:50 | 3061932 Undecided
Undecided's picture

https://www.youtube.com/watch?v=waEYQ46gH08

 

Hey Tyler here is a documentary you might like on the economies of the Balkens

Fri, 12/14/2012 - 02:08 | 3061982 Induced Coma
Induced Coma's picture

So so sad. Why do people allow this kind of interference and corruption. Fucked up world we live in.

IC

Fri, 12/14/2012 - 04:39 | 3062045 WTFx10
WTFx10's picture

Its good to be king? Bad to not be?

Fri, 12/14/2012 - 01:54 | 3061967 newengland
newengland's picture

So suddenly, North Korea is the focus of attention. Interesting...

Faber is a rootless cosmopolitan, not to be trusted by any Republic. His sort bankrupted the West, and now he wants an easy exit.

A man ought to be judged by his loyalty to the Republic,  not his bank balance, a transient thing of no lasting consequence.

Fri, 12/14/2012 - 02:08 | 3061980 littleguy
littleguy's picture

wrong, haha

Fri, 12/14/2012 - 11:36 | 3062708 Element
Element's picture

You figured out you're on the internet yet? This ain't the 'Republic' of Kansas any more statist dupe.

Fri, 12/14/2012 - 02:00 | 3061975 q99x2
q99x2's picture

That was really nice. I liked the beginning. It gave me the feeling of one of the last people on earth telling the story of how it ended.

Fri, 12/14/2012 - 02:17 | 3061989 Atomizer
Atomizer's picture

As stated various times, strange faces will begin surfacing out of nowhere. After the gantlet of Hollyweird figureheads goes dry, newfangled shadowy characters will enter the stage. Dispatch will be the same, appearances will become changed.

Fri, 12/14/2012 - 03:55 | 3062032 Quarky Gluon
Quarky Gluon's picture

Mr Faber should realize that much of North Korea's economic malaise can be traced to the fact that the country has very little arable land and also that it is not a true communist state but rather it is a tyrannical monarchy where everything must be sacrificed not for the sake of the community but rather for the sake of the emperor.

Fri, 12/14/2012 - 07:13 | 3062103 Lebensphilosoph
Lebensphilosoph's picture

Oh, yes, if only it were a 'true' Communist state, then it would be prospering.

Fri, 12/14/2012 - 11:20 | 3062639 GMadScientist
GMadScientist's picture

“Under the guidance of our leader, Comrade Napoleon, I have laid five eggs in six days”

Fri, 12/14/2012 - 04:12 | 3062036 Pareto
Pareto's picture

After I listened to Bernanke's double speak yesterday and his followup willingness to throw all caution to the wind with, pinning his hopes on the Phillips curve (which was thrown out long ago, since shit...i can't even remember), it was the creepiest moment ever.  He basically front ran everybody (especially Japan) by claiming a sort of victory in getting to the front of the currency devaluation line.  "ha ha, we were here first fuckers."  Its not even a fucking line in the sand.  Its absolute wreckelss abandonment of all economic and moral principles.  Like a batshit crazy fucking monkey banging pots and pans and shitting all over the place.  Its fucking goofy.  i'm going to close out every long.  Fuck it.  Because the longer I remain in, the more I feel a party to it, or implicitly endorse the insanity. Ha.  I know there will be some ZH's saying, "thats it everybody, back the truck up!"  Regardless, I feel the the expected value of loss just got incredibly larger.  I don't feel as though any forward gains are going to be even remotely attractive enough to compensate for 4 standard deviation correction that must inevitably occur, not because I think the world is going to end, but, because you can't keep a chimp in charge of shit and expect that everything is going to be ok.

So, I don't think I can play along side the little fucker because sooner or later I know he's going to throw his own shit in my face.  When I least expect it.

Fri, 12/14/2012 - 07:34 | 3062118 DollarDive
DollarDive's picture

My sentiments exactly..... I left in 2008

Fri, 12/14/2012 - 04:58 | 3062055 liszt
liszt's picture

The crisis is not due to keynesians, who are in fact the people who do the only thing that can be done to save the economy (what else ?). The crisis is due to Van Mises, Friedman and all neo-conservative idiots, and by the way the crisis started since 1973 : since this date we have no full employement. I wonder how on ZH you can go so wrong, you don't have any clue, nor any understanding either.

Ah yeah, and tomorrow morning we will have hyperinflation isn't it Mr Tyler Durden ? Sure... this was such one of your great view upon economics Mr Tyler ! Such a genius. And greetings to Ron Paul ! Certainly another genius.

 

 

 

 

 

Fri, 12/14/2012 - 07:43 | 3062125 yrbmegr
yrbmegr's picture

There are a lot of predictions made here on ZH, many times a day.  Occasionally, one of them proves correct.  I suppose if you predict everything, you can't be wrong.

Fri, 12/14/2012 - 05:01 | 3062058 liszt
liszt's picture

Some people here comes frome the time of McCarthyism.

Fri, 12/14/2012 - 07:16 | 3062105 Lebensphilosoph
Lebensphilosoph's picture

Others from the time of a 19th century drunkard son of a Jewish rabbi.

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