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Guest Post: Hayek vs Krugman – Cyprus’ Capital Controls

Tyler Durden's picture




 

Submitted by Steve Hanke, Professor of Applied Economics, The Johns Hopkins University

Hayek v. Krugman – Cyprus’ Capital Controls

Nobelist Paul Krugman has a propensity to spin and conceal. This allows for deception – the type of thing that hoodwinks some readers of his New York Times column. While deception doesn’t qualify as lying, it also fails to qualify as truth-telling.

Prof. Krugman’s New York Times column, “Hot Money Blues” (25 March 2013) is a case in point. Prof. Krugman sprinkles holy water on the capital controls that will be imposed in Cyprus. He further praises to the sky the post-1980 capital controls that were introduced in a number of other countries.

Prof. Krugman then takes a characteristic whack at all those “idealogues” who might dare to question the desirability of capital controls:

But the truth, hard as it may be for ideologues to accept, is that unrestricted movement of capital is looking more and more like a failed experiment.

Fine. But, not once did Prof. Krugman mention that there just might be a significant cost associated with the imposition of capital controls – a cost with which Prof. Krugman is surely familiar.

Before more politicians fall under the spell of capital controls, they should take note of what another Nobelist, Friedrich Hayek, had to say in his 1944 classic, The Road to Serfdom:

The extent of the control over all life that economic control confers is nowhere better illustrated than in the field of foreign exchanges. Nothing would at first seem to affect private life less than a state control of the dealings in foreign exchange, and most people will regard its introduction with complete indifference. Yet the experience of most Continental countries has taught thoughtful people to regard this step as the decisive advance on the path to totalitarianism and the suppression of individual liberty. It is, in fact, the complete delivery of the individual to the tyranny of the state, the final suppression of all means of escape—not merely for the rich but for everybody.

When it comes to capital controls, I think the Cypriots – even the non-ideologues – might be inclined to agree with Hayek over Krugman.

 

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Mon, 03/25/2013 - 22:46 | 3375433 Phroneo
Phroneo's picture

These ongoing capital control guarantee a sharp contraction in GDP and tax revenue which make a second bailout certain. Hell, it would have been certain even without this issue.

 

I wonder if EU leaders actually believe that this solution will last. Do they know it's going to all blow up one day, worse than if they let it blow now?

Mon, 03/25/2013 - 22:56 | 3375478 TeamDepends
TeamDepends's picture

Why are we listening to people who have never worked a day in their lives?

Mon, 03/25/2013 - 23:05 | 3375509 Divided States ...
Divided States of America's picture

This one fact alone is enough for me to disregard this economist as a biased no good piece of lying manipulative shit....the fact that he is a Jew. Same thing applies to Bernanke.

Mon, 03/25/2013 - 23:17 | 3375541 Larry Dallas
Larry Dallas's picture

I still can't believe in this day in our age that no one has taken a hit out on Krugman.

What has this country come to?

The Second Ammendment may well be sold past its sell by date if no one has the balls to start a revolution. Where are all the vets with terminal cancer?

 

Tue, 03/26/2013 - 00:31 | 3375543 TruthInSunshine
TruthInSunshine's picture

More on how Krugman is a deceptive, slippery charlatan, because it can't be overstated:

Krugman's Caught in Lie on Housing Bubble

J.M.emails:
Not sure if you saw this, but I watched the video mentioned in the comment section on your site and the poster is correct.

Starting around 19:40 or so of this video from his Bloomberg appearance the other day:

http://www.bloomberg.com/video/91694137/

Krugman claims that it is the "great lie" that the Fed created the Housing Bubble.  However, he wrote this in his blog in 09:

"What I said was that the only way the Fed could get traction would be if it could inflate a housing bubble. And that’s just what happened."

  http://krugman.blogs.nytimes.com/2009/06/17/and-i-was-on-the-grassy-knoll-too/

This is hardly unique, just as his editor at the NY Times pointed out in his final column:

http://www.nytimes.com/2005/05/22/weekinreview/22okrent.html

By DANIEL OKRENT
Published: May 22, 2005 The Public Editor
The New York Times
13 Things I Meant to Write About but Never Did

"Op-Ed columnist Paul Krugman has the disturbing habit of shaping, slicing and selectively citing numbers in a fashion that pleases his acolytes but leaves him open to substantive assaults."

And then the exchange between Krugman and his editor showed how Krugman cannot handle being defeated in a debate, just as we are seeing now after the Ron Paul showdown. 


http://publiceditor.blogs.nytimes.com/2005/05/31/new-public-editor-hosts-paul-krugman-daniel-okrent-debate/

Krugman is the ultimate statist  tool. He hawked his book "End This Depression Now!," and spoke of the  reality of the economic depression we are now in, right up until about 16 weeks prior to the election, when he suddenly started to applaud Obama  for policies that he then claimed were helping to create an "economic recovery," even if any such "recovery" was always and consistently previously dismissed for some 3 years by Krugman, which Krugman blamed squarely on the opposition to Obamanomics by Congress.

Krugman is a politician, dogmatist & idealogue parading as an economist.

Tue, 03/26/2013 - 02:13 | 3375754 californiagirl
californiagirl's picture

Good post. Krugman constantly refers to our current economic system as "capitalism" when it actually has become a Crimonopoly, with increasing disregard for the rule of law and holding anyone significant accountable. From his statements, it is clear he is a fan of furthering crimonopolies.

Tue, 03/26/2013 - 03:26 | 3375810 akak
akak's picture

Paul Krugman: Behold the sound of one lapdog yapping.

Tue, 03/26/2013 - 06:58 | 3375950 negative rates
negative rates's picture

He looks awful worried about not being able pass on the family name, or he could be truely lost.

Tue, 03/26/2013 - 08:06 | 3376077 diesheepledie
diesheepledie's picture

Krugman is right and so are the EU bankers. And there will be no fallout. The Cypriots, as well as the Spanish and Italians know full well they are better off in the Euro. And they will put up with plenty of banker pounding in the ass to do so. These southern Europeans are the laziest sheep in the EU flock, and would never risk the comfy coziness of the EU by attempting actual sovereignty.

Tue, 03/26/2013 - 08:29 | 3376134 ATM
ATM's picture

Everyone wants free beer. When the free beer runs out it is very likely the partygoers will get belligerent. The trick is going to be using the coming anger to the ends the Ciminals desire rather than having it blow up in their faces.

They are planning and putting the structures in places to harness the backlash. Whether they can control it or not is another matter.

Tue, 03/26/2013 - 09:35 | 3376389 little buddy bu...
little buddy buys the dips's picture

krugman is a scumbag who should swing with the other scumbag bankers and politicians. period.

 

i'll gain some respect for him when he can soil his well-manicured hands, when he can sweat in a field or bust his ass in a factory. until then, he's just a soft little worm. clueless idiot.

 

hang 'em high.

Tue, 03/26/2013 - 04:52 | 3375864 Anasteus
Anasteus's picture

Thanks for the comment. Krugman is an agent of the elite, the cartel's megaphone spreading deceptive propaganda. I can't believe it's a result of natural ignorance or stupidity, he's not stupid. I think it's an insidious intentional endeavor supporting hidden plans of the elite for which he is getting paid.

Tue, 03/26/2013 - 08:29 | 3376136 ATM
ATM's picture

Absolutely. It's called conditioning.

Tue, 03/26/2013 - 02:46 | 3375779 Anonymouse
Anonymouse's picture

You're an ass. And no, I am not Jewish.

Tue, 03/26/2013 - 13:51 | 3376381 Anasteus
Anasteus's picture

Please try to understand, I believe very most of us are not anti-semitic even if it might seem so at first sight. I personally have nothing against Jewish people; I treat them as everyone else, and in fact, there are many who I have deep respect to. What is here often referred to as 'Jewish' in pejorative sense are some aspects of Jewish mentality, which, if not self-controlled, can inflate to proportion that can cause serious problems. Manipulative lying is by no means specific Jewish domain; it's a common sad experience in all nations throughout whole history. But there is a difference in perception and mental acceptance of manipulative lying; if manipulative lying is commonly perceived a wrongdoing in the society then everyone committing it knows, feels and accepts he/she is doing something wrong in the given cultural context.

But what about different cultural context? If one feels superiority over others, say, because of deep rooted tradition of God's selected nation, the situation may differ. Such a group of people can create a natural microclimate supporting and fueling this attitude under the hood for centuries, which is often multiplied by isolation imposed on them by foreign hosting societies, often under unjustified pressure. As many other nationalities, also Jews have some specifics features, one of which is self-confidence, derived not (only) from natural personal self-confidence but also from the collective tradition and mutual supportive interconnection, which are different from those in the hosting society. This can lead to a double behavior, one directed to own community and one to the outer one... and we have hugger-mugger and craftiness on scene - when viewed from the outside community perspective. It may then easily happen that hugger-mugger is even necessary when pursuing goals that are not identical with those of the outside hosting community. In such a case, tricking and camouflaging are not a wrongdoing but a legitimate way of pursuing own goals, which are preferred - when viewed from their own inner community perspective.

Again, there is nothing special about it, Germans also gave in to Hitler delusions of supremacy partly because of the economic situation but also because of the German traditional feature; uncritical obedience towards all-powerful authorities. But Germans had to swallow a bitter pill, they must have undergone decades of open and hidden disdain and thus had an opportunity to face unpleasant facts and were able to consciously reflect and handle the situation. And, voila, it had a healing effect; Germany is again a modern civilized country on the top of the scene with effective measures in place preventing them from easy fall back in history. And we could find other examples in history.

But as regards Jews in high positions, especially when considering their unusual competence to deal with money, we can notice the rise of the elitist behavior deeply rooted in the tradition. The problem is that it is not a usual taste for money and power as standard political puppets or regional dictators are demonstrating, but a deeper plan, which is unknown to many. And this is disturbing; while the forementioned aspects are mostly transparent and therefore more or less manageable, hidden acting is invisible, therefore potentially dangerous. No wonder that many react somewhat childish, but psychologically understandably, in form of offense; the problem can only be solved by addressing reasons not consequences. Although many contemporary Jews are already more or less assimilated in the society they live in and which they accept, it somehow happened that those in leading position having money, and thus power, are still forcing the old pattern of behavior being hidden and possibly far exceeding the extent we, the westerners, would be able to accept in our cultural context. Simply put it, we don't know what's actually happening, this non-transparency is provoking and disturbing. From the great psychologists Freud and Jung we already know that unreflected unconscious acting is source of all evil; we, therefore, logically cannot accept it. The biggest problem of the leading Jewish elite is their reluctance to self-reflection and transparent acting. Even if they were better at some or many areas than we are, it is not acceptable to do it this way. Incapability of self-reflection might cause unconscious elemental acting, which doesn't not bear critics, modification, discussion, new idea inflow, and which eventually stops mental evolution. Such a man is definitely trapped in his own cemented world far away from reality, repeating over and over again the same behavioral patterns and acting behind the scenes since he can't effectively face open reality. Combined with big power, this is potentially very dangerous. That's why we invented democracy and transparency. And since these principles became a cradle of unprecedented scientific, technical, and cultural progress never seen before in history, they are historically proven as constructive and viable and thus fully justified. They have nothing to do with libertarian movements, circles, and attached groups, but they are logical consequence of hard historical process to defeat evil and ignorance.

So, as you can see, the problem is a bit more complicated and much less personal than it might seem at first glance.

Tue, 03/26/2013 - 08:52 | 3376192 MSimon
MSimon's picture

Well then. You have your sights on the bagmen. While the guys behind the curtain...

Tue, 03/26/2013 - 08:53 | 3376197 MSimon
MSimon's picture

And What about the Jew Friedman, Milton?

Tue, 03/26/2013 - 11:20 | 3377066 davidgdg
davidgdg's picture

Ditto Mises. Oh wait .....

Mon, 03/25/2013 - 23:06 | 3375513 erg
erg's picture

Nobody should be listening to this sclerotic, doddering fuck.

Mon, 03/25/2013 - 23:14 | 3375530 erg
erg's picture

5 o-clock Paul just made his first bombing pass.

Mon, 03/25/2013 - 23:17 | 3375545 toys for tits
toys for tits's picture

Paul Krugman is to economists what Captain Crunch is to military men.

Mon, 03/25/2013 - 23:34 | 3375573 kchrisc
kchrisc's picture

"Now that's funny, I don't care who you are."

 

I wonder what size guillotine Krugman wears?!                hujel

Tue, 03/26/2013 - 00:22 | 3375633 Anusocracy
Anusocracy's picture

Someone has to play the role of minimally conscious so that the severely retarded look good.

Tue, 03/26/2013 - 01:42 | 3375712 Idiocracy
Idiocracy's picture

That's quite a head shot.  Krugs and Charles Manson, separated at birth?

Tue, 03/26/2013 - 01:47 | 3375714 Waterman Jim
Waterman Jim's picture

Or what Carrot Top is to comedians.

Tue, 03/26/2013 - 08:31 | 3376139 ATM
ATM's picture

I've actually seen Carrot Top live. He was good but you have to be really stoned and have a hooker on your arm.

Tue, 03/26/2013 - 02:49 | 3375781 Anonymouse
Anonymouse's picture

Paul Krugman is a yummy taste treat?

Mon, 03/25/2013 - 23:21 | 3375554 azzhatter
azzhatter's picture

Fuck You Krugman

Tue, 03/26/2013 - 03:46 | 3375821 JuliaS
Mon, 03/25/2013 - 23:53 | 3375600 DeadFred
DeadFred's picture

Why do we have to have so so many post on the Krugman. He sold his soul on the crossroads to get his Nobel prize and he's been a spokesman for the devil ever since. We all know it so lets just ignore him.

Tue, 03/26/2013 - 01:20 | 3375681 knukles
knukles's picture

He serves as a good focal point for derision and humor

Tue, 03/26/2013 - 07:06 | 3375967 nmewn
nmewn's picture

Paul Krugman, the Conscience of a Liberal...even the name he chooses for his blog is an evil deception. No real liberal would defend capital controls, putting all faith & force behind the state in its never ending thirst to restrict their freedom, monetarilly or otherwise.

This is how a liberal thinks?

To all my "liberal" friends, is he liberal in the tradition of Voltaire or something very much opposite?

Tue, 03/26/2013 - 07:26 | 3375996 Ghordius
Ghordius's picture

+1 I blame several things for this sorry state of the word "liberal" in the US

on one side the entrenched party duopoly - how "liberal" is a nation where political seats can only be achieved by members of two established parties?

on the other side the electoral laws that strongly support the this state - though I note that the British have more than two parties even though they have a similar electoral setup - and they are recognizable as belonging to the three main ideological camps: socialism, conservativism and liberalism - (aka proponents of more equality or fraternity or liberty)

which leads me to repeat: seen from afar (here) all Americans look liberal - of different shades of liberalism - at least in theory and words

-------------

Paul Krugman would be laughed at if he declared himself a liberal at any european liberal party meetings - we would point out that his views are quite socialist

Tue, 03/26/2013 - 08:43 | 3376172 Cap Matifou
Cap Matifou's picture

His fake price is not a Nobel, only a bankster award named after the real thing
http://en.wikipedia.org/wiki/Nobel_Memorial_Prize_in_Economic_Sciences

"officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel"

Tue, 03/26/2013 - 06:54 | 3375947 B2u
B2u's picture

Never worked a day in their lives?  I thought you were refering to Obama.

Mon, 03/25/2013 - 22:59 | 3375488 SafelyGraze
SafelyGraze's picture

capital control is just one of several tools needed to drive the velocity of banking-medium to zero

 

Tue, 03/26/2013 - 03:40 | 3375818 Archduke
Archduke's picture

zero, no. but to non-unicorn levels, yes.

Tue, 03/26/2013 - 07:03 | 3375963 Liberty2012
Liberty2012's picture

Yes, only free people use money - slaves do not. However, what we use for money today is an illusion designed to fail. No need to mourne the passing. We do need to find ways to continue sharing our work as free men. Truth is always good. Life is beautiful.

Mon, 03/25/2013 - 22:53 | 3375456 NoDebt
NoDebt's picture

Do you think they are playing for time for no reason and with no plan?

Do you think that's air you're breathing?

Tue, 03/26/2013 - 00:15 | 3375591 Strut
Strut's picture

We need capital controls:

1. Politics - Money is not speach! Politics is not a career.

2. Medicine -  When will I be able to find a market for the cheapest bypass surgery when my heart fails while fucking my doctor's wife? Because she is the one I'm calling if I have a 4 hour erection. Her number should come with the script.

3. Religon - I should be able to fuck whatever, with a pig skin, while drunk on Sunday...

Tue, 03/26/2013 - 01:04 | 3375668 zorba THE GREEK
zorba THE GREEK's picture

Krugman is a joke, a sad joke at that. His Nobel prize for economics is as 

relevant as Obama's Nobel Peace Prize.

Mon, 03/25/2013 - 22:46 | 3375436 ozzz169
ozzz169's picture

Even liberals dont take that buffoon serious anymore... not sure how that DB can look in the mirror without thinking, man I dont even believe the BS that comes out of my mouth anymore...

Tue, 03/26/2013 - 00:06 | 3375616 McMolotov
McMolotov's picture

Even liberals dont take that buffoon serious anymore...

The hell they don't! Go read the comment section for his article at the NY Times. They're practically slobbering all over the place to see who can give Krugman a cyber-blowjob. The bearded dork is mainstream liberal thought personified.

What's funny is how they're so up each other's brilliant, enlightened asses that they can't see he's just another statist stooge for the bankers.

Tue, 03/26/2013 - 01:23 | 3375685 knukles
knukles's picture

Bullshit
My statist uber liberal government employee buds think he's a paragon of virtue and limitless intelligence...

.....because he furthers their agenda

Tue, 03/26/2013 - 05:47 | 3375895 css1971
css1971's picture

PLEASE, PLEASE, PLEASE stop misusing the word "liberal".

Tue, 03/26/2013 - 07:13 | 3375976 Liberty2012
Liberty2012's picture

Agreed. Stealing language is the ultimate theft. We should take it back. At least put it in quotes to signify it's not being used properly.

Tue, 03/26/2013 - 10:57 | 3376859 McMolotov
McMolotov's picture

I know what you're saying: "You keep using that word. I do not think it means what you think it means."

I realize the word 'liberal' has been corrupted from its original meaning, but at this point, it's like trying to reclaim the word 'gay.' It's just not going to happen. The word 'conservative' has similarly been corrupted. There's nothing conservative about a police state and perpetual warfare. Nonetheless, these are the terms that have gained widespread acceptance; as such, they are the terms most people will understand in a political discussion.

I don't like it any more than you do, but it is what it is. Generally, I prefer to frame everything as "liberty versus statism," but there are undeniable factions within statism itself. Krugman and modern self-identifying "liberals" comprise one of those factions.

Tue, 03/26/2013 - 08:57 | 3376208 Ayn NY
Ayn NY's picture

How true. My retarded Econ professor forced us to read an article by that jackass. He knew I would disagree with every word including and and the, so he prefaced the reading by pointing out that it was by a Nobel winning economist.

Mon, 03/25/2013 - 22:48 | 3375443 erg
erg's picture

A dork for all ages.

Mon, 03/25/2013 - 22:48 | 3375444 ziggy59
ziggy59's picture

Im about to go bed, for crying out loud, and you show a picture of Freddie Krugman?? Thats not even remotely funny!

Mon, 03/25/2013 - 22:58 | 3375482 pods
pods's picture

9.....10...........Never sleep again.

pods

Mon, 03/25/2013 - 22:48 | 3375445 overhere2000
overhere2000's picture

This article is probably as disingenious as the subject it is discussing. But nobody told me there'd be days like these.

Mon, 03/25/2013 - 22:49 | 3375446 Stuck on Zero
Stuck on Zero's picture

With capital controls you are subject to the tyranny of your state.

Without capital controls you are subject to the tyranny of someone elses state.

Life is hard and then you die.

Mon, 03/25/2013 - 22:49 | 3375447 NoDebt
NoDebt's picture

Krugman favors whichever way the wind blows.  That's all you need to know about him. 

As such, he's got one of the best weathervanes in the world.  So if he says capital controls are good then you can bet your ass he's felt a shift in the winds that direction.

Mon, 03/25/2013 - 22:55 | 3375469 Matt
Matt's picture

Krugman should lead by example and have his bank put a $100 per day limit on withdrawls / spending.

Tue, 03/26/2013 - 06:36 | 3375930 Beam Me Up Scotty
Beam Me Up Scotty's picture

With elites it's do as I say, not as I do. Rules are only for little people.

Mon, 03/25/2013 - 23:24 | 3375557 EscapeKey
EscapeKey's picture

Whenever he posts an opinion, it's because he can always reverse his position later and claim he was merely misunderstood.
He lambasts hyperinflationists for not providing an exact date, yet when he says we should be aware of excessive debt without posting an exact amount.
He's a first class hypocrite.

Tue, 03/26/2013 - 07:47 | 3376026 Acidtest Dummy
Acidtest Dummy's picture

An economist is someone who will tell you tomorrow why they were wrong about what they told you yesterday.

PROSECUTE THE WAR CRIMINALS!

Mon, 03/25/2013 - 22:51 | 3375449 erg
erg's picture

And all-round douchebag.

Mon, 03/25/2013 - 22:51 | 3375451 ziggy59
ziggy59's picture

Nobelist, like the term Honorary, in front of the names of the biggest lying pack of crooks and enept people to ever run this country, shouldnt be used, IMO

Mon, 03/25/2013 - 22:53 | 3375453 stant
stant's picture

he and bens getting a new band together, called road rage titanic. first albums called  lets back up and hit it again

Mon, 03/25/2013 - 22:54 | 3375457 ECE
ECE's picture

Part of the disease of progressive big govt.   The so called elites have no idea how to get out of their own way.

 

Tue, 03/26/2013 - 00:48 | 3375657 Anusocracy
Anusocracy's picture

Krugman's problem is the same as other world fixers: an unswerving belief in failed ideas combined with an irresistible urge to control other people's lives.

I'm sure he is a candidate for the Douglas Feith " dumbest fucking guy on the planet "Award.

Mon, 03/25/2013 - 22:54 | 3375458 tony bonn
tony bonn's picture

krugman is not an economist. he is satan's little lying helper who is a member in high standing with the rockefeller nazis..

Mon, 03/25/2013 - 23:05 | 3375507 NoDebt
NoDebt's picture

Don't ascribe such high status to him.  He WISHES he was on their payroll.  He's a sycophant.  He's the George Costanza of Economics.  He'll say whatever gets him quoted in the media but he is NOT on the inside.  NOBODY in a position of real power would ever ask his opinion before proceeding, let alone ask him to make a decision on his own.

Tue, 03/26/2013 - 01:26 | 3375689 knukles
knukles's picture

They'd be thrown out of the Illuminati if they mentioned his name in public

Tue, 03/26/2013 - 02:23 | 3375765 Just Ice
Just Ice's picture

undoubtedly for the high crime of stupid by association

Tue, 03/26/2013 - 04:00 | 3375829 Rogue Trooper
Rogue Trooper's picture

Best post on the issue of the Krug's relevance. I think he is arrogant enough to think that he will be taken care of, that he will get picked up and securely extracted on the Chopper when that fateful 'Saigon' moment comes.

Krug will be chopped to pieces by the same uneducated masses whom he claimed to be helping.

His ego will be his undoing.... meanwhile the real players remain in the shadows.

...same as it ever was.

Mon, 03/25/2013 - 22:54 | 3375461 surf0766
surf0766's picture

He looks like a marxist disguised as a human

Mon, 03/25/2013 - 22:55 | 3375467 They Tried to S...
They Tried to Steal My Gold's picture

I've been convinced for a long time this stooge is a shill for the Robbers of Wealth - because NOONE can be this stupid and the fact that he won a Nobel Prize .......pretty much seals the truth.

 

He is as bad a Dick Bove another one on the payroll 

 

EXTERMINATE BOTH RATS IMMEDIATELY

Tue, 03/26/2013 - 02:40 | 3375759 TruthInSunshine
TruthInSunshine's picture

The ultimate irony is that his cult of worshippers who comment in the wake of his bullshit are nearly all bona fide socialists whose biggest ideas begin and end with "tax the rich more, massively expand our already unsustainable entitlement programs, and that deficits and the accumulated debt is not even on the radar screen of our concerns, let alone a present systemic disease that will inevitably AT LEAST act as a MASSIVE DRAG on U.S. economic growth for decades to come [let alone not inevitably bring the U.S. to the fork in the road that has two equally appalling choices]" and that they cheer on Krugman's endless & enthusiastic endorsement of insanely destructive monetary policies such as Ben Bernankanus's quantitative greasing -- which is literally a policy that redistributes wealth from the middle and working classes to the very top 1/2 percentile.

Tue, 03/26/2013 - 03:45 | 3375820 Archduke
Archduke's picture

really? you don't get more of a schill than Hanke, of the Cato Institute for pete's sake.

to consider Krugman a shill instead of Steve Hanke is seriously inverting the notion.

Mon, 03/25/2013 - 22:56 | 3375475 Schmuck Raker
Schmuck Raker's picture

Krugman himself is an ideologue, one with blood on his hands.

Mon, 03/25/2013 - 22:57 | 3375477 freshfart
freshfart's picture

Eat shit Krugman. He clearly spends most of his free time trying to get the George Clooney look down.

Tue, 03/26/2013 - 01:34 | 3375700 SpiceMustFlow
SpiceMustFlow's picture

And ends up with a ragged out 1980s pornstar bush on his face.

Mon, 03/25/2013 - 22:57 | 3375480 jon dough
jon dough's picture

I work hard, I make my own living and I love it. I like having financial independence.

Salma Hayek

Fuck, even SHE makes more sense than Krug-turd.

Mon, 03/25/2013 - 23:16 | 3375538 toys for tits
toys for tits's picture

When I saw the title I thought it was Paul against Salma.  I figured she knock him out.

Mon, 03/25/2013 - 23:00 | 3375495 Dr. Engali
Dr. Engali's picture

I'm pretty sure Krugman would be singing a different tune if it was his capital being plundered.

Mon, 03/25/2013 - 23:15 | 3375534 NoDebt
NoDebt's picture

Patience, Doc.  Patience.  The day after they jam all of us he'll be on TV saying "I had my deposits taxed, too and I think it's a good thing for the country in the long run and something we should all see as part of our civic duty in these troubled times." 

He'll get taken the same as the rest of us.  Worse, actually, because he clearly doesn't believe in holding physical.  He is NOT an insider.  He won't see it coming any more than you or I will.  Nobody is going to ring his phone 2 days beforehand to tell him to step off the tracks.

Tue, 03/26/2013 - 01:29 | 3375693 knukles
knukles's picture

He'll not get the call because he's asshole

Tue, 03/26/2013 - 04:03 | 3375832 Rogue Trooper
Rogue Trooper's picture

+1000 A useful idiot, no more, no less.

Mon, 03/25/2013 - 23:00 | 3375496 Its Only Rock N Roll
Its Only Rock N Roll's picture

"Like so many others who hold a purely monetary theory of the trade cycle," wrote Hayek, "(Krugman) Keynes seems to believe that, if the existing monetary organisation did not make it impossible, the boom could be perpetuated by indefinite inflation...Hence he was quite consistent when, despairing of a revival of investment brought about by cheap money, he advocated, in his well know broadcast address, the direct stimulation of the expenditure of the consumers...for, on this theory, the effects of cheap money and increased buying of consumers are equivalent."  (written in February 1932, friggin' eerie isn't it???)

But what did Friedrich know anyway?

Mon, 03/25/2013 - 23:02 | 3375497 lead salad
lead salad's picture

Fuck you, Krugman!

Mon, 03/25/2013 - 23:04 | 3375502 Vint Slugs
Vint Slugs's picture

While Steve Hanke is an accomplished economist, he nonetheless is not a philosopher.  His opening paragraph includes the phrase, "...While deception doesn’t qualify as lying...".  In that he is incorrect.  Any effort that distorts reality is effectually a lie.  That technique, restating actuality, is one of pseudo-economist Krugman's methods in which he recasts principles in favor of his intellectually biased and faulty perception of reality. In failing to call out Krugman for what he is - a bald-faced liar - Hanke does everyone who is struggling to make sense of current conditions a disservice.

Mon, 03/25/2013 - 23:53 | 3375598 ebworthen
ebworthen's picture

Even calling Krugman a Sophist of the highest order would be an insult to Sophists.

Tue, 03/26/2013 - 01:34 | 3375701 JLee2027
JLee2027's picture

Beat me to it. 

Tue, 03/26/2013 - 01:37 | 3375702 JOYFUL
JOYFUL's picture

 

... Any effort that distorts reality is effectually a lie...

For denizens of the fallen lands of the west, any supposition predicated pon a notional 'undistorted' reality is effectively an even bigger lie;

why???...

via the infinite refinements of their cabbalistic techiques, the necromancers of the newly emerging neo-fuedal west  have buffered\filtered all perception with a noxious dualism which gives everything the aspect of a 'funhouse' - as if one's eyes were no longer able to quite focus in balance, and the resulting picture leaves all perceptible 'reality' slightly akimbo. This subtle, but graduated distortion, over time has created the conditions for a complete loss, on the part of those now living, of any true grounding in the 'really real'...only it's imagery remains.

Baudrillard described this process perfectly:

It is a question of substituting the signs of the real for the real, that is to say of an operation of deterring every real process via its operational double, a programmatic,metastable, perfectly descriptive machine that offers all the signs of the real and shortcircuits all its vicissitudes. Never again will the real have the chance to produce itself - A hyperreal henceforth sheltered from the imaginary, and from any distinction between the real and the imaginary, leaving room only for the orbital recurrence of models and for the simulated generation of differences.

And with the era of the hyperreal, there is no need to imagine truth(as opposed to lie)...indeed no means of doing so! That is why the strange spectacle of yeasterday - a Dutch Eurocratic Potentate attempting to deny the 'truth' of what he was on record as saying - is no longer the unusual, but rather, the norm...Funhouse Rules! The only way to innoculate ones' self from these institutionalized crimes against sanity is to recognize and accept that there is no 'real' basis to anything that is produced in the now insane west...this is gone far beyond 'pretending' to  a world of normality and 'recovery'...we have now reached the shores of complete simulation  - a step beyond mere lying. Funhouse Rules.

 

To dissimulate is to pretend not to have what one has. To simulate is to feign to have what one doesn't have. One implies a presence, the other an absence. But it is more complicated than that because simulating is not pretending...pretending, or dissimulating, leaves the principle of reality intact: the difference is always clear, it is simply masked, whereas simulation threatens the difference between the "true" and the "false," the "real" and the "imaginary." Pg 4 Simulacra and Simulation

Indeed, the true 'economy' of the west now is not even grounded in the realm of physical goods...nor is the 'velocity of money' a true measurement of it's moment to moment status; it is the velocity of communication which solely determines the flow of value...just as traders depart a market devoid of all but algos, so reality retreats from a society where all thought and action are mere simulation designed to confuse and misdirect.

To live in such a state...to live inside the confines of a State in which this distortion is mandated, upon pain of death or imprisonment...is to be inescapably driven towards madness. The only remedy is departure.

Tue, 03/26/2013 - 05:27 | 3375881 Optimusprime
Optimusprime's picture

Nice post.  Baudrillard's elegant point had been made earlier by Hegelian Marxist Henri Lefebvre, and earlier still by Kierkegaard.

 

And it's "neo feudal"--a post as good as this deserves editing.

Tue, 03/26/2013 - 09:16 | 3376286 JOYFUL
JOYFUL's picture

I appreciate your sharp eye...for both word and meaning; and resolve to attack the challenge of editing with greater fervor in the future! Thank you.

Tue, 03/26/2013 - 07:36 | 3376009 Boxed Merlot
Boxed Merlot's picture

The only remedy is departure...

 

Or fight.

Tue, 03/26/2013 - 09:18 | 3376306 JOYFUL
JOYFUL's picture

Indeed there is no other option than to fight or surrender.

Does one fight to retain, or fight to regain...a question of strategy, not goal.

Tue, 03/26/2013 - 08:22 | 3376119 Liberty2012
Liberty2012's picture

"Any effort that distorts reality is effectually a lie."

worth repeating often - Thank you

Mon, 03/25/2013 - 23:10 | 3375522 orangegeek
orangegeek's picture

Leave the krugman alone.  He has a PhD.  If you don't believe me, just ask him and he will tell you at least 10 times.

 

 

Mon, 03/25/2013 - 23:12 | 3375528 djsmps
djsmps's picture

Or just ask anyone on the Huffington post.

Mon, 03/25/2013 - 23:12 | 3375527 Bunga Bunga
Bunga Bunga's picture

Krugman looks like a young Cypriot on that picture.

Mon, 03/25/2013 - 23:15 | 3375537 Temporalist
Temporalist's picture

Any hater of that epicine Ewok is a friend of mine.  I have never met anyone outside of a mental institution that has quoted little paulie kruger.

I wish I had a dollar for every stupid idea Paulie The Alien wrote about.

Mon, 03/25/2013 - 23:26 | 3375561 sosoome
sosoome's picture

All your capital controls are belong to us

I swear, anyone in the zone who doesn't get assets out of banks now, deserves to have their capital controlled. And coming to the US too. Digital dollars carry huge risk...

Mon, 03/25/2013 - 23:29 | 3375565 maskone909
maskone909's picture

That fucker krugman is a coke head if i ever saw one. Doesnt even blink during interviews

Mon, 03/25/2013 - 23:31 | 3375569 sangell
sangell's picture

I'm ambivalent about this. What is true at the individual/micro level may not work at the macro. While an individual should be free to take and spend his wealth where he chooses do we allow UBS and JP Morgan to have the same freedom with the aggregated wealth of millions? Consider a highway where thousands of individual drivers go north and south, drive in different lanes and take seperate exits. Things move smoothly with this random approach but if you try and put 90% of the traffic going north with all the vehicles in the left lane and then have them all head for the same exit gridlock would ensue.

Mon, 03/25/2013 - 23:51 | 3375596 ebworthen
ebworthen's picture

Please clarify.

Tue, 03/26/2013 - 00:05 | 3375615 sangell
sangell's picture

I agree with Hayek as far as individual liberty is concerned but I don't think JP Morgan is an individual. It is the same principle as a labor union. Big Banks are nothing but a collection of individuals money combined to act as one. Jamie Dimon has as much in common with capitalism as the UAW. Put him in charge of bank with $2 billion in assets and he is a nobody in a nice suit. Break up the UAW such that the one union represents the workers at GM's truck factory in Cleveland and that union boss is a nobody in Men's wearhouse suit.

Tue, 03/26/2013 - 01:24 | 3375686 ebworthen
ebworthen's picture

Gotcha', thank you.

The Supreme Court deciding that corporations are individuals = WTF?

Tue, 03/26/2013 - 07:23 | 3375991 Oldwood
Oldwood's picture

While I understand the argument against corporations having an individual's rights, The distinction only exists because of government, just like gay marraige and healthcare. By government taxing businesses effectiviely as individuals, business needs some political power for its own defense. As a small business person, my business is within a city's boundaries that I do not live in and therefore have no voting rights. Further, while many detest corporate power, ultimately we are all their customers and every tax they pay, we as their consumers pay the price. Government should not be taxing any business and only individuals. Taxing business is a back door tax on all of us and creates incentives that only help accelerate job migration away from America. Government should not give tax or legal preference to marriage and should have never mandated hospitals to provide care to non-paying customers as each has given them power that ultimately corrupts the market place. Corporatism has the power it has today only due to government interventions.

Tue, 03/26/2013 - 07:46 | 3376019 Ghordius
Ghordius's picture

first, in a simplified form, a corporation has special privileges granted by the state - so a special law status above the ordinary citizen

second, those special privileges are without major consequences for small firms - increase the size and things change - including the taxes they pay (or, better, don't pay) or the TBTF status they can achieve. seen this way corporate taxes are levied on small biz only and bankrupcies - even in the privileged form - apply only to non-TBTF

third, political power as constituted now - particularly in the US - depends heavily on campaign contributions by corporate money, privately funded think-tanks and lobbys - again something that favours the big versus the small (up to global efficiency vs local effectiveness)

seen this way, the megacorporation is something like a princely state in an empire, particularly if it has the added privileges of banking, making it a megabank

size matters

Tue, 03/26/2013 - 08:36 | 3376149 falak pema
falak pema's picture

a de facto state within a state making : What's good for GM is good for USA the corpo-poitical meme since post war US supremacy, copied in all other countries today; like Putin's Gazprom construct; like China today etc. etc. 

Big is beautifully ugly in its pervasive hubris. 

Tue, 03/26/2013 - 05:32 | 3375884 Optimusprime
Optimusprime's picture

Excellent point, and one often ignored by so-called "libertarians".

Mon, 03/25/2013 - 23:45 | 3375584 Schmuck Raker
Schmuck Raker's picture

OT: Tyler, take a look at this:

http://globaleconomicanalysis.blogspot.com/2013/03/federal-spending-per-...

The second chart, especially.

Maybe re-publish it here, please?

Mon, 03/25/2013 - 23:49 | 3375594 kushmere
kushmere's picture

I don't think it really matters what we do now. I think the path of events ahead is mostly already determined.

http://bestbitcoinsites.wordpress.com

Tue, 03/26/2013 - 01:09 | 3375607 ebworthen
ebworthen's picture

So ideologues are now people who don't want their money stolen?

The bearded potato utters more starchy non-sequiturs!

27 dogs chasing their tails somewhere in his mind.

Mon, 03/25/2013 - 23:58 | 3375610 Pairadimes
Pairadimes's picture

There may well come a time when a large number of the enemies of the citizens of the United States will be suspended from an equal number of lamposts in cities across the country. I will hope to see his face on one of them.

Tue, 03/26/2013 - 00:03 | 3375612 Prairie Dog
Prairie Dog's picture

"But, not once did Prof. Krugman mention that there just might be a significant cost associated with the imposition of capital controls – a cost with which Prof. Krugman is surely familiar."

Er, wrong. Krugman wrote that "capital controls have potential costs: they impose extra burdens of paperwork, they make business operations more difficult, and conventional economic analysis says that they should have a negative impact on growth (although this effect is hard to find in the numbers)."

 

 

 

Tue, 03/26/2013 - 00:49 | 3375658 Stud Duck
Stud Duck's picture

Well Prairie Dog, effency is not the goal, control is the goal.

Tue, 03/26/2013 - 01:31 | 3375699 knukles
knukles's picture

Aaaarrragh!

Tue, 03/26/2013 - 03:22 | 3375809 akak
akak's picture

Avast, you be calling me, matey?

Tue, 03/26/2013 - 00:22 | 3375635 gwar5
gwar5's picture

If Krugman is blathering propaganda how capital controls are going to save us, then they are certain and will be bad. If Krugman does more than 3 talk shows per weekend to shill the meme that capital controls are good, then they are certain to be very severe. 

Tue, 03/26/2013 - 01:36 | 3375706 gwar5
gwar5's picture

Just saw where BRICs are in South Africa right now discussing formation of a new International Bank. Of course, the West will have to keep all of us sheep trapped in our pens so we don't dump USDs and EURs for CNYs.

 

It is easy to forget that the Chinese and Russians are moving to a new competing currency like a juggernaut and the stakes are high.

Tue, 03/26/2013 - 00:40 | 3375647 lolmao500
lolmao500's picture

Krugman and Hayek are both hacks.

Tue, 03/26/2013 - 03:21 | 3375808 akak
akak's picture

If so, Krugman is by far the hackier of the two.

Tue, 03/26/2013 - 01:17 | 3375678 tom
tom's picture

Cypriots will definitely be closer to agreeing with Hayek. Krugman is so far out of touch it's almost funny.

But the context is very different from what Hayek was writing about, Europe in the 30s-40s. This isn't being done by an aggresive local fascist movement, but by desperate, cowardly agreement among democratic elites, local and foreign. Money was lost and because Cyprus is a tax haven there wasn't enough foreign sympathy for a full bailout. So they're wiping out some wealth, but they're afraid to go too far too fast and provoke too much social rebellion, so they're also maintaining a facade that most of the wealth is still there in the banks, and instituting capital controls to try to force the population to play along with this national myth of the wealth still being there.

Given the corruption and family-first nature of Cyprus society, these capital controls stand no chance of working. The money will leak quickly until another excercise of writing off wealth will have to be carried out. 

Tue, 03/26/2013 - 01:21 | 3375683 JR
JR's picture

Krugman is a Keynesian. Keynes was a Socialist. Keynesianism is “a naked class theory of the business cycle,” wrote economist Henry Hazlitt, “strikingly similar to Marx…as also with Marxism, there is the pose…that the existing ‘system’ just won’t work and must break-down.”

Krugman’s major outlet is the NY Times. The Times’s man in Moscow, William Duranty was an apologist for Stalin, for Communism, who identified with the Soviet dictator, and for twenty years he and the NY Timesplayed a key role in perpetrating some of the greatest lies history has ever known credited with helping to win U.S. recognition for the Soviet regime.”

Today, America’s government and government-connected universities and economists and media are mired in the depths of Keynesian central planning. Two out of every five Americans now say their country is evolving into a socialist state.

That is the power of a state-controlled press, and its economists.

A review of “Stalin’s Apologist” states, “Thus during the great Ukrainian famine of the early 1930s, which Stalin engineered to crush millions of peasants who resisted his policies, Duranty dismissed other correspondents' reports of mass starvation and, though secretly aware of the full scale of the horror, effectively reinforced the official cover-up of one of history's greatest man-made disasters. Later, he took the rigged show trials of Stalin's Great Purges at face value, blithely accepting the guilt of the victims… (drawn) into a downward spiral of distortions and untruths, typified by his memorable excuse for Stalin's crimes, ‘You can't make an omelet without breaking eggs.’"

The NY Times also “bears a good share of responsibility for the lack of thought about unintended side-effects, which ramify to this day,” in America from Third World immigration (particularly socialism), according to William McGowan in his August 2008 documented, full background of The 1965 Immigration Reforms and The New York Times: Context, Coverage, and Long-Term Consequences.

That explains, in part, why socialism threatens to obliterate the Founders' Republic. Which answers Walter Williams question, Why Aren't Murderous Communists Condemned Like Nazis Are? Wrote Williams in 2012:

“Between 1917 and 1987, Vladimir Lenin, Josef Stalin and their successors murdered and were otherwise responsible for the deaths of 62 million of their own people. Between 1949 and 1987, China's communists, led by Mao Zedong and his successors, murdered and were otherwise responsible for the deaths of 76 million Chinese.

“The most authoritative tally of history's most murderous regimes is documented on University of Hawaii Professor Rudolph J. Rummel's website, at http://www.hawaii.edu/powerkills, and in his book ‘Death by Government.’

“How much hunting down and punishment have there been for these communist murderers? To the contrary, it's acceptable both in Europe and in the U.S. to hoist and march under the former USSR's red flag emblazoned with a hammer and sickle.

“Mao Zedong has been long admired by academics and leftists across our country, as they often marched around singing the praises of Mao and waving his little red book, ‘Quotations From Chairman Mao Tse-tung.’ President Obama's communications director, Anita Dunn, in her June 2009 commencement address to St. Andrews Episcopal High School at Washington National Cathedral, said Mao was one of her heroes.

Path To Genocide

“Whether it's the academic community, the media elite, stalwarts of the Democratic Party or organizations such as the NAACP, the National Council of La Raza, Green for All, the Sierra Club and the Children's Defense Fund, there is a great tolerance for the ideas of socialism — a system that has caused more deaths and human misery than all other systems combined.”

Thomas DiLorenzo writes: It has always been true that intellectuals, not the poor, have been the chief advocates of egalitarianism. Most poor people want to become richer. It is the intellectual class that is so often obsessed with envy and hatred of people who are more financially successful than they are. That they can manipulate survey questions that are used to make it appear that this view comes from ‘the poor’ and not themselves does not make this statement untrue.”-- Organized Crime, The Unvarnished Truth About Government (p. 189)

Thus, our educational system and economists, such as Krugman, express their adhorrence of Hitler and the Germans (who did not elect Hitler; Hitler rigged his own “election’), while admiring and giving their tacit and verbal approval of Stalin, Mao and Communism.

Tue, 03/26/2013 - 01:52 | 3375721 gwar5
gwar5's picture

Good summary of all these scumbags! They are the enemy, the banks are their army, and the monetary system is their artillary. 

 

Dr. Paul Craig Roberts, former Deputy Sec. of Treasury 30 years ago, said this is not really a banking crises but a crises of self government and democracy. Says we should not allow self government to be throw away to save the banks, but that is really what is happening. He laments that even a level of violence may be required by the citizenry to reverse the course we are on.

Tue, 03/26/2013 - 02:08 | 3375751 Prairie Dog
Prairie Dog's picture

Get your gun and head to the log cabin. They're coming for you!

 

Tue, 03/26/2013 - 04:28 | 3375855 Rogue Trooper
Rogue Trooper's picture

Super summary.  If only the so called poor could see that they have been truely played by these VERY useful idiots who will never be allowed entry to the inner party.

Krug can look forward to room 101... I will make a stand when the time comes.

We are all fucked.

Tue, 03/26/2013 - 06:22 | 3375885 falak pema
falak pema's picture

JR you are spinning ideology through innuendo. You are better when you affirm positive values than when you play the Torquemada of statism by disguising all statist action in totalitarian garb. 

"All that is excessive is irrelevant" stays the norm for men who remember that prudence and courage, justice and temperance stay the best rules of debate schools. You'll have to admit today, in the real world, that the system "has broken down" as its practiced. Otherwise we would not be here on ZH...

And Keynes was not anti free market; he was anti dominant position of oligarchy --as witnessed in the "grapes of wrath" depression corpo-facscist knee jerks-- and as a pragmatist saw the necessity to counter it by statist policy in the name of "general good". He did believe that the invisible hand of the free market did not exist and who could doubt that today?

Don't be contemptible of dialectics, give the other side the benefit of the doubt; nobody has truth hidden up his sleeve, notably a Hayek who was as intransigent as Marx and Lenin. The issue today is more about what "general good" means in terms of economic redistribution in society to "level the playing field"; and when this trend becomes counter productive. 

As a funny man once said : Ayn Randism is the mastubatory insinct of a right wing nut lost in utopia. I'll accord you that humour is debatable but I don't subscribe to it being abatable nuisance.

Tue, 03/26/2013 - 06:52 | 3375945 geewhiz
geewhiz's picture

Keyenes harbored totalitarian sentiments but understood that the "boiling frog" approach to implementation was more effective than the outright communist whack over the head method. Krugman is a zionist change agent charged with extending this philosphical economic poison. His nobel prize is part of the game, adding credibility to the messenger of nonsense. And of course the jewyork times is just his vehicle.

Nice try anyway, it will probably help confuse those not too deeply studied.

Tue, 03/26/2013 - 07:18 | 3375985 falak pema
falak pema's picture

geewhizzzzzz... you are deep into non factual ad hominem innuendo ketchup sauce.

Its as if the Versailles treaty debt hangover for vanquished had never existed and its disastrous consequences...and the 1929 "oh so free" market crash was just a communist organised bad dream, the depression a statist concoction...play on...twist fact into convenient revisionista fiction. Thats the reality Keynes's generation faced. 

Enjoy your greasy french fries.

Tue, 03/26/2013 - 01:35 | 3375703 q99x2
q99x2's picture

Arrest Krugman for conspiracy to commit fraud and treason against the United States of America.

Tue, 03/26/2013 - 01:36 | 3375705 All Out Of Bubblegum
All Out Of Bubblegum's picture

Fedcoin is probably Krugman's idea.

Fedcoin: A centrally-issued alternative to peer-to-peer currencies

http://peculium.net/2013/03/26/fedcoin-a-centrally-issued-alternative-to...

Tue, 03/26/2013 - 01:59 | 3375727 serema
serema's picture

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Tue, 03/26/2013 - 02:03 | 3375733 Prairie Dog
Prairie Dog's picture

I love coming to Zerohedge. I read the comments, and I laugh

and I laugh

and I laugh

 

Tue, 03/26/2013 - 02:48 | 3375780 Notarocketscientist
Notarocketscientist's picture

Are you Barry Ritzholtz?  The clown who thinks US housing is recovering - who thinks the US economy is recovering?

Tue, 03/26/2013 - 03:17 | 3375804 Prairie Dog
Prairie Dog's picture

Lots of angry white men who can't spell, but think they know about economics

 

Tue, 03/26/2013 - 03:19 | 3375807 akak
akak's picture

I think you mean:

"Lots of angry white men who can't spell, but WHO think THAT they know SOMETHING about economics."

Your grammars is not much gooder like there spelling.

Tue, 03/26/2013 - 04:38 | 3375862 Rogue Trooper
Rogue Trooper's picture

I see so the Hedge is RAYCIST now. Go back to faux news or some other MSM rag where you can scream 'red team' vs. 'blue team'. No one here gives a fuck because the game is rigged and your're the patsy.

Cognitive dissonance is bitch Prairie.

Tue, 03/26/2013 - 02:11 | 3375755 honestann
honestann's picture

You think Krugman is dangerous now?
Wait until he replaces the Bernanke.
Gold $20,000... then confiscation.

Tue, 03/26/2013 - 02:11 | 3375756 dumpster
dumpster's picture

and laugh

Tue, 03/26/2013 - 02:12 | 3375758 dumpster
dumpster's picture

and laugh laugh laugh

Tue, 03/26/2013 - 02:23 | 3375764 Motorhead
Motorhead's picture

Krugman is just such a fucking ass wipe.  And a first-class dork.  Fuck that putz.

Tue, 03/26/2013 - 02:53 | 3375783 Notarocketscientist
Notarocketscientist's picture

I wonder how much gold krugman has stuffed into a safe in his cellar.

Tue, 03/26/2013 - 03:18 | 3375806 foxenburg
foxenburg's picture

I think Krugman's right in the referenced article on capital movement. In particular, the ability to move zillions at the click of a mouse has made things too volatile.

Tue, 03/26/2013 - 07:27 | 3375999 MyBrothersKeeper
MyBrothersKeeper's picture

It's hypocritical at best considering the Fed moves billions on a daily basis....and that's just the money we know about. It's been widely accepted that the Fed has been propping up Europe and others for years.  How can Krugman be for the "all in" Fed and then denounce capital movement?

Tue, 03/26/2013 - 03:35 | 3375813 Archduke
Archduke's picture

that's rich coming from a Cato institute Koch brothers minion.

ZH editors, mind ensuring articles have some actual content?

 

this article is pure propaganda linkage. there's 3 links back to Cato,

and not a single informative line except a non-sourced Hayek quote.

 

it could have been nice to see a breakdown of Hayek's arguments

against capital controls.  you'd think a professor would have the rigour

to source that.  but I suspect we've rather assumed the role of publicitor.

 

 

Tue, 03/26/2013 - 05:43 | 3375892 Peterus
Peterus's picture

What more do you want sourced? You've got Krugman's article linked and Hayek's book named (book chapter lacking I guess?).

Rigour does not mean that every time you want to write your though down you've got to scale it up to infinity. Book could be written about capital controls and not exhaust the topic. Here it's just two quotes against each other and if you're not satisfied you've got to go deeper yourself.

Tue, 03/26/2013 - 04:14 | 3375847 Freewheelin Franklin
Freewheelin Franklin's picture

The problem is, Kruggy's statement is only about 30 words long, while Hayek's is about 120. You don't really expect the average American to sit through 120 words of economics in this age of instant gratification, do you? 

Tue, 03/26/2013 - 06:51 | 3375856 NuYawkFrankie
NuYawkFrankie's picture

Re Krugman has a propensity to spin and conceal...

 

What else would you expect from a scribbler for Haaretz On The Hudson ?

Tue, 03/26/2013 - 05:45 | 3375893 Peterus
Peterus's picture

But the truth, hard as it may be for peasants to accept, is free-reign human farming is looking more and more like a failed experiment. Time to close cages down again.

Tue, 03/26/2013 - 06:25 | 3375924 Downtoolong
Downtoolong's picture

It amazes me how guys like Krugman can keep talking and writing with authority and certainty, considering the many recent examples of their ideas and policies failing in plain sight. His ego just gets even bigger when he’s playing on defense, which is what his article in the NYT yesterday was really all about.

In fairness, I can imagine him not being able to talk about true economic freedom at this point, since it’s been rammed so far down his throat he’s choking on it.

  

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