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‘Apocalypse’ Krugman Ignores History, Keynes And Lenin’s Warnings

GoldCore's picture




 

Paul Krugman’s latest missive in The New York Times again attacks those who warn about the risks of a new debt crisis and the ramifications of radical, ultra loose monetary policies.

 



Krugman says that the recent concern about “debts and deficits” was a “false alarm.” He attempts to paint those who were concerned about the debt crisis as scare mongers. He sarcastically says that “the debt apocalypse has been called off.”

This is a meme that Krugman uses frequently as seen in headlines like ‘Addicted to the Apocalypse’, and ‘Apocalypse Fairly Soon.’ He uses this meme to try to link those concerned about the debt crisis and the current monetary response to it as alarmist doom and gloom merchants and irrational people who believe the “end of the world” is nigh.


It is a way to attack the straw man rather than sticking to the facts and having a more reasoned debate.


It is ironic as Krugman himself became quite apocalyptic in his warnings during the Eurozone debt crisis. He warned that “things are falling apart in Europe,” of a “gigantic bank run” and of an “emergency bank closing.”

Not only did he warn of a massive bank run and emergency bank holidays but he warned of the euro breaking up and Italy returning to the Italian lira and even warned of France returning to the French franc.

Krugman was wrong then, as indeed were many of the people he criticises. However, the crisis is far from over and reared its head in Portugal in recent days and there is a long way to go before this crisis reaches its conclusion.


He has also been quite apocalyptic himself regarding global warming. He has warned that “utter catastrophe” looks “like a realistic possibility,” and that the “rise in global temperatures that will be little short of apocalyptic.”

When it comes to the apocalypse, Krugman likes to have his apocalyptic cake and eat it too.

Krugman continues to advocate printing currency as one panacea to our economic ills. There is much groupthink on this topic amongst western central banks and policy makers and many share Krugman’s views.

 


Krugman is right that so far the record debt levels in the U.S. and throughout much of the western world and the currency printing response have not led to inflation or stagflation.

However, it is very premature to completely discount the risk. History clearly shows printing money on the scale that we have witnessed in recent years ultimately leads to inflation, and sometimes hyperinflation.

Lenin rightly warned that the "best way to destroy the capitalist system is to debase the currency.” History confirms this.

Krugman has great respect for Keynes and yet Keynes shared Lenin's concerns. "Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency" warned Keynes.

In a time of cosy Keynesian consensus, plurality of opinion is important and it is worth remembering this important warning from the past.

Krugman, has been one of the most vocal gold bears in recent years and his opinion on gold has lacked nuance and ignored the academic and historical record.

As ever, a historical perspective and a long term perspective is important. Krugman has neither and completely ignores history for the sake of his loose money, inflatonist ideology.

It remains prudent to have an allocation to physical gold in allocated and most importantly segregated storage in the safest jurisdictions in the world. If you cannot have your individual coins and bars delivered to you in a few days you do not own bullion in the safest manner possible.

Singapore is becoming an emerging precious metals hub and a key player in the global bullion market. Against the very uncertain global macroeconomic and geopolitical backdrop, prudent private individuals and institutions are moving their physical bullion to one of the safest jurisdictions in the world. 

Read the Essential Guide To Storing Gold In Singapore here

 

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Thu, 07/24/2014 - 14:40 | 4999594 Debeachesand Je...
Debeachesand Jerseyshores's picture

Except for New York Times readers,who in world listens to Paul Krugman anymore.

Thu, 07/24/2014 - 14:20 | 4999462 kurt
kurt's picture

Krugman the CNBC of propagandistic FED shills.

Thu, 07/24/2014 - 14:17 | 4999433 SILVERGEDDON
SILVERGEDDON's picture

Before the end comes, I hope Krugman gets shot, pissed on, rolled in flour, deep fried, and run through an airport snow blower at full tilt.

On network TV.

Just to make sure he doesn't come back as Zombie Krugman. 

i think I would get cable turned on for the first time since 2004 for that kinda entertainment. 

Thu, 07/24/2014 - 14:32 | 4999542 DerAdler
DerAdler's picture

If he took his fellow tribesmen with him from the major networks, the biggest banks, Wall Street, and DC, I'd give anything to see that. In fact, I'd take a special trip to Hell to see it in person.

Thu, 07/24/2014 - 14:14 | 4999421 orangegeek
orangegeek's picture

Krugman is an academic cancer who pumps his garbage to those gullible to believe this turd

 

 

Thu, 07/24/2014 - 13:55 | 4999317 Random_Robert
Random_Robert's picture

Let's crystallize our focus on two enumerated points in the article, and use them to expose "Krugtard the Ignorable"  as the academic fraud he is:

"He has also been quite apocalyptic himself regarding global warming. He has warned that “utter catastrophe” looks “like a realistic possibility,” and that the “rise in global temperatures that will be little short of apocalyptic.”

When it comes to the apocalypse, Krugman likes to have his apocalyptic cake and eat it too.

Krugman continues to advocate printing currency as one panacea to our economic ills. There is much groupthink on this topic amongst western central banks and policy makers and many share Krugman’s views. "

So then, the task to Academia should simply be to challenge Krugman to elaborate on how zero interest money, and the flooding of Earth with paper bills of credit, will EVER serve to quell the tide of his looming global warming doomsday ...?"

Print Money! Cool the Earth !

Brilliant Krugtard.

 

Thu, 07/24/2014 - 13:25 | 4999147 DerAdler
DerAdler's picture

I hope that when MBuma finishes his Stalin-like transformation, it includes a purge of Krugman and his tribe. They are in total control now, they have total responsibility for this mess.

Thu, 07/24/2014 - 12:53 | 4998943 KnuckleDragger-X
KnuckleDragger-X's picture

While I'm all for the guillotine public hanging and the firing squad but when the time comes, we need to find something extra special for St. Paul.

Thu, 07/24/2014 - 12:37 | 4998849 Ariadne
Ariadne's picture

Someone installed this retard and hundreds of thousands just like her in order to prevent real accomplished geniuses from occupying these roles essential to our cultural survival.

College is fucked. Join a gang.

Thu, 07/24/2014 - 13:03 | 4998803 Bear
Bear's picture

 “the debt apocalypse has been called off.”  ... Called off until the chickens come home to roost for my children and grandchildren.

Thu, 07/24/2014 - 12:11 | 4998727 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Professor Krugman is entitled to his perspectives even if they don't add up. His followers are entitled to follow and worship his every word like he is some sort of economic guru. Sooner rather than later Krugman will be outed and so will his colleagues and followers. One need only sit back and wait for Krugman's demise on the world stage. Professor Bernanke and Professor Krugman make up two thirds of the Three Stooges second act.

The only question we should be asking right about now is whether Janet Yellen should play Larry, Curley, or Moe in the second act? I figure her hair makes her a perfect fit to play Moe.

 

Thu, 07/24/2014 - 13:27 | 4999169 DerAdler
DerAdler's picture

Krugman will not be held accountable, he has "eternal victim" status.

Thu, 07/24/2014 - 12:29 | 4998816 dontgoforit
dontgoforit's picture

A blonde Moe.  Supercharged.

Thu, 07/24/2014 - 11:39 | 4998495 teslaberry
teslaberry's picture

krugman is a paid spokesperson who aspires to be head of the treasury or fed and thus is saying precisely what the rothschilds or other large bank families want him to say. 

he has an audience of 'liberals' who believe they are educated because they want to harvard, and can read krugman and think that as a result , they understand what 'economcis' is. 

 

the fact is, we all read and to an extent form our opinions through a relativistic comparison of what we know and what we learn through reading. 

 

people who read krugman do just the same. only, they are dumber.

Thu, 07/24/2014 - 11:08 | 4998255 MrBoompi
MrBoompi's picture

Even Keynes himself would be shocked at what is being done in his name.  Although he did believe in money creation (increasing the debt as necessary) he thought it should be used as a stimulus for the general population as opposed to just being handed to the banks and the wealthy at basically zero % interest.  It is clear what the Federal Reserve has done has not helped 99% of the population here, let alone the rest of the planet.

Thu, 07/24/2014 - 12:21 | 4998707 JRobby
JRobby's picture

If Keynes came back from the dead and saw the things being done in his good name, he would never stop vomiting.

 

That said, his "policies" worked for what GOV was trying to do at the time. We are in a totally different era now. Economics is political nor scientific anyway.

Thu, 07/24/2014 - 12:28 | 4998807 dontgoforit
dontgoforit's picture

If J.M. Keynes came back today he would probably be Krugman.

Thu, 07/24/2014 - 11:17 | 4998313 Comte d'herblay
Comte d'herblay's picture

You then, don't believe in the,  "Trickle Down your Pants leg",  theory of economic stimulation, do you??

 

 

Thu, 07/24/2014 - 10:15 | 4997832 shovelhead
shovelhead's picture

Why Krugman?

For people who believe if you keep digging you'll eventually come out the other side.

 

Thu, 07/24/2014 - 09:43 | 4997602 NOZZLE
NOZZLE's picture

Didn't that clown serve at Enron?

As far as GoreBull Warming goes, when I saw yesterdays NOAA temp map which indicated SE Wisconsin had an above normal June I almost died laughing.

They really started a push last December to get that bullshit cranked up again with the news meda runing helpful articles on a daily basis.

Thu, 07/24/2014 - 09:30 | 4997532 Quinvarius
Quinvarius's picture

Krugman confuses the ability to rig futures paper prices with stable prices.  Government price setting by other means has been tried and failed before.  Setting debt prices by buying your own debt and setting commodity prices by using futures is the same as price control.  These tactics don't work and only cause economic decay.  Krugman, please research The Law of The General Maximum.  Get back to me with a report on it so I know you understand it.

Thu, 07/24/2014 - 09:23 | 4997502 DavidC
DavidC's picture

When it comes to Krugman, I'm reminded of the line the The Shawshank Redemption -

"How can you be so obtuse?"

DavidC

Thu, 07/24/2014 - 09:22 | 4997475 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

It's been said before, and I'll say it here, just for my amusement:

If printing money worked in the long-run, the empires of history would still be around.

Enjoy your Nobel prize and all the perks of being an over-educated idiot worshiped by the current establishment, Krugman, because the scholars of the future will dismiss you.

Thu, 07/24/2014 - 09:07 | 4997451 Watson
Watson's picture

>>>
...Italy returning to the Italian lira...
<<<

If things get difficult for Italy, this is a real option, because Italy in lira days wasn't a basket case: it was pretty chaotic, but sold cheap white goods in volume all over Europe, as well as expensive designer wear.
Not just a tourist industry.

But Spain and Portugal...

Thu, 07/24/2014 - 09:04 | 4997439 Rosie-Redknapp
Rosie-Redknapp's picture

Rest assured he has a future appointment with a guillotine.

Sheep will be sheep, but shepherds who mislead sheep, and blindfold them with disinformation and propaganda all the way to the abyss are going to get dragged screaming out of their beds someday soon.

Sooner the better

Thu, 07/24/2014 - 11:52 | 4998612 ATM
ATM's picture

dragged through the 5 boroughs beaten, kicked and spat upon first I hope.

Thu, 07/24/2014 - 08:48 | 4997392 Ghordius
Ghordius's picture

"It is ironic as Krugman himself became quite apocalyptic in his warnings during the Eurozone debt crisis. He warned that “things are falling apart in Europe,” of a “gigantic bank run” and of an “emergency bank closing.”

Not only did he warn of a massive bank run and emergency bank holidays but he warned of the euro breaking up and Italy returning to the Italian lira and even warned of France returning to the French franc."

of course Dr. Krugman hates the EUR. it's handling is way too much like a criticism of the NeoKeynesians policies he reccomends

Thu, 07/24/2014 - 13:37 | 4999226 lasvegaspersona
lasvegaspersona's picture

The Euro and the dollar are at war...a point hard for many here at ZH to see and accept. They just shout 'all fiat currencies are bad'.

The Euro is fully prepared for higher priced gold. They hold 10,800 tons on their balance sheet. The dollar will die with higher priced gold as gold would then become the wealth asset of choice instead of American debt. The Euro has already won.

To come to the understanding of why a fiat currency is needed to allow gold to fully function read this:

http://www.usagold.com/halldiscussion.html

It changed the way I view fiat.

Thu, 07/24/2014 - 08:40 | 4997368 falak pema
falak pema's picture

the caption should read "Milton" not "Maynard"..

Chicago "my home town" of neo con shamans.

Thu, 07/24/2014 - 08:38 | 4997364 sodbuster
sodbuster's picture

Here's my Krugman joke.

Experienced economist(Krugman) and not so experienced economist are walking down the road. They come across some shit lying on the asphalt. Experienced economist "If you eat it I'll give you $20,000!"

Not so experienced economist runs his optimization problem and figures out he's better off eating it so he does and collects money.

Continuing along the same road they almost step into yet another shit. Not so experienced economist: "Now, if YOU eat this shit I'll give YOU $20,000".

After evaluating the proposal experienced economist(Krugman) eats shit getting the money.

They go on. Not so experienced economist starts thinking: "Listen, we both have the same amount of money we had before, but we both ate shit. I don't see us being better off".

Experienced economist(Krugman) says "Well, that's true, but you overlooked the fact that we've just been involved in $40,000 of trade".

 

Thu, 07/24/2014 - 17:18 | 5000505 bitterwolf
bitterwolf's picture

KUDOS,sodbuster.

Thu, 07/24/2014 - 08:59 | 4997415 Bahamas
Bahamas's picture

Plus, after they re-shit the shit they ate it will give way to fractional reserve shit.

Thu, 07/24/2014 - 10:01 | 4997708 sodbuster
sodbuster's picture

Bahamas- would that be the same as rehypothecating?

Thu, 07/24/2014 - 10:30 | 4997941 shovelhead
shovelhead's picture

Not exactly.

Fractional reserve shit would magically become 10X larger with you loaning out 9 piles to someone else.

Rehypothication is selling a small pile of shit to 9 other shit-buyers who claim title to the same small pile of shit.

Both smell like shit.

Thu, 07/24/2014 - 09:47 | 4997617 Bastiat
Bastiat's picture

Good one!

Thu, 07/24/2014 - 08:09 | 4997303 Duude
Duude's picture

He's a political hack, nothing more. He attempts to cover over his exteme partisanship by posing as an 'economist'. In fact, he has the degree and has taught at Princeton.  But like one that graduates and teaches in the fine arts, it doesn't guarantee one can paint, or sculpt worth a damn.

Thu, 07/24/2014 - 07:34 | 4997209 USisCorrupt
USisCorrupt's picture

The only ones that believe anymore are the ones telling all the lies. But what do they believe? Many will die....

Thu, 07/24/2014 - 13:32 | 4999200 DerAdler
DerAdler's picture

.

Thu, 07/24/2014 - 11:49 | 4998584 ATM
ATM's picture

They don't beleive what they are saying. They are working towards the chaotic end and planning for the aftermath.

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