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Paul Krugman: "We’ll Only Feel Prosperous During Bubble Periods"
While hardly able to match the wit, sophistry or, allegedly, satire of yesterday's MarketWatch grandslam in market insight "Why This Stock Market Will Never Go Down", we are confident readers will enjoy the following interview from none other than the Nobel prize winner in Keynesianomics, Paul Krugman, who in this interview with Princeton Magazine, had some comments on bubbles, inflation, student loans, minimum wages, artificially low rates, the Fed's dual mandate, and, of all things, Bitcoin.
From Princeton Magazine:
Are bubbles good or bad and do we need them to create strong economic growth and reach higher levels of employment?
Bubbles are bad if you have an economy near full employment, where they divert resources from their proper use and set the stage for financial instability. In a depressed economy, even ill-conceived spending can help create jobs, so bubbles aren’t necessarily bad. There are reasons to believe that we’re facing an era of persistent economic weakness, which means that we’ll only feel prosperous during bubble periods.
* * *
New York’s minimum wage is currently $8 per hour. Germany is introducing a national minimum wage next year of 8.50 euros, equivalent to $15 an hour. Swiss voters recently rejected increasing their minimum wage to 22 Swiss francs or nearly $25 per hour. What would you like to see the minimum wage be in the US?
I’m for raising the minimum to something over $10 nationally, which would bring it back in real terms and as a share of average non-managerial wages to its level in the 1960s. High-productivity centers, like New York, could justify going higher.
How has studying economics at a Ph.D. level changed since you were a student?
I’m actually struck by how little it has changed. The basic structure of course-work that lays a foundation, followed by dissertation, is the same; the math and statistical level has risen, but it was already pretty high in 1975! The content of some fields has changed, of course, mostly though not everywhere for the better. On the whole, though, the structure both of education and of the career track for young economists has been remarkably stable. I think that’s starting to change now, as the web and the proliferation of think tanks shake up the sources of career success. But that’s just happening, after decades of stability.
Do you have any concern that mounting student loan debt will eventually impact the economy and housing market?
It’s already happening. Household formation is very low, and debt has to be part of the explanation.
How much inflation is appropriate and why has the inflation rate remained low despite the expansion in the money supply?
Inflation is a tradeoff—higher inflation raises some costs of doing business, but low inflation or deflation have the effect of prolonging slumps. In the ’90s there was a sort of consensus that 2 percent made the most of that tradeoff, but subsequent experience shows that the costs of low inflation are much bigger than we thought. So I’d advocate something like 4. As for why inflation hasn’t picked up—both theory and historical experience told us that in a depressed economy with near-zero interest rates increases in the quantity of money would just sit there. Some of us were saying that over and over back in 2009 and 2010; what will it take for people to admit that we were right?
Please comment on how artificially low interest rates have impacted the current value of baby boomers’ retirement portfolios and should this be a consideration of the Federal Reserve?
Oh, boy. What do you mean “artificially low”? Compared to what? The appropriate level of the interest rate, most economists would say, is the rate that gives us full employment without inflation; since we don’t have full employment, that says that rates are too high.
And no, the Fed’s job is to stabilize the economy, not to protect incomes of some groups at the expense of that mandate.
Do you think Bitcoin will gain momentum and become a viable currency?
No. I could be wrong, but Bitcoin is harder to use than other forms of electronic payment, and lacks any fundamental source of value (unlike dollars, which can be used to pay taxes). It’s possible that Bitcoin will somehow become self-supporting, but for now my guess is that it’s largely a fad that will collapse one of these days.
* * *
That said, should anyone take these musings and observations seriously? We leave that up to the reader. But here is what Krugman said about the internet and technology in 1998.
The growth of the Internet will slow drastically, as the flaw in 'Metcalfe's law'–which states that the number of potential connections in a network is proportional to the square of the number of participants–becomes apparent: most people have nothing to say to each other! By 2005 or so, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's.... As the rate of technological change in computing slows, the number of jobs for IT specialists will decelerate, then actually turn down; ten years from now, the phrase information economy will sound silly.
So probably not.
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Is there no end to this Prick?
Even Japan's super-succesful experience with QE on steriods doesn't shut him up.
Mother fucking zionist like him, Yellen, Bernanke, Greedspan....I also only feel homicidal (standing next to them) after bubble periods.
Bubble Period sounds like something my wife would make up to keep me away from her.
Krugman is ill.
Best not to pay attention to him.
"Do you have any concern that mounting student loan debt will eventually impact the economy and housing market?
It’s already happening. Household formation is very low, and debt has to be part of the explanation."
Ya, dumbass, maybe because people don't like to be "debt slaves" to their mortgage company. Maybe students are waking up that they are already debt slaves with their student loans, and don't want another collar around their neck.
Also, Fuck you Krugman.
Krugman lives in his own little academic world like Bernanke did. The long-term effects are not realized.
"Often Nobel prize winners are tempted to pontificate on matters that are outside the specialty in which they have excelled"
This is the article that origially brought me to Zero Hedge, thanks I think to Hedgeless Horseman who linked it onto another board. I think of the quote everytime Krugman is in the news.
http://www.zerohedge.com/news/ultimate-krugman-take-down
it takes many people a lot of time to see through krugman's total lies and bullshit.
it's a shame it takes so many people so long to do this. it's an even worse shame that krugman maintains any audience whatsoever.
...you can fool some people all of the time. -----that describes krugman's audience.
Krugman - what a completely ridiculous ass clown.
I'm pretty sure PK is smarter than me but ya gotta take that in context to other folks in the 90 IQ ranges.
People can be smart, and really, really, really smart, and still as dumb as a fucking fence post. That's Paul Krugman.
That sir, is one of the funniest and most truthful posts on ZH I have had the pleasure to read !!!!!
Krugman is better suited to North Korean economics. He needs a one-way ticket to Pyongyang.
Lord Haw-Haw for the 21st century. Remember Paulie; for best results, cut along the forearm, not across the wrists.
Krugman said bitcoins are worthless. That's excusable.
ZHers say bitcoins are worthless.
*slit*
*slit*
*slit*
Finally some fucking peace.
+1 for humor and truthiness
Krugman's problem, or should I say his biggest problem since he has so many problems, is that he is book smart. I'll take a man with honest-to-God hands on knowledge any day over some book smart geek who can't apply book knowledge to real world problems.
This quote? :
"which means that we’ll only feel prosperous during bubble periods."
I think he meant to use the word "preposterous". See what I mean? Book smart.
The problem with this "smart" guy and many many others like him is that they ascribe to a false economic religion, the religion of Keynes. They are not going to change. Their lives and egos are fully invested in this economic philosophy. You will not convince them of anything different. They are not open to it, which is actually the mark of a fool. Even if it fails, it will not be because they are wrong. It will be because they did not do enough of it. Krugman has signaled as much.
The only thing one can do is to defeat them or replace them but "they" are fully in control across the world. They all worship the same economic model which just by chance happens to empower government, central planners, banks and a self appointed elite. Of course this is not why every government believes these theories. It is purely because of the truth of them.
Great reference, I'd not watched that before. I loved about 41:00 into it, where the professor is obviously giving Krugman and his like the universal symbol of masturbation.
Say's Krugsby
"Bitcoin.........lacks any fundamental source of value (unlike dollars, which can be used to pay taxes)
There you go...Think I'll go out an buy me some taxes...Big sale on at #dotgov !
Yes, I want to keep my wealth in dollars so I can give it to the government. Is that a line from dumb and dumber 2?
Also men have no incentive to form families under the current family law regime.
+1,000,000,000,000
+ 1 If I wasn't already married for over a decade, I wouldn't ever get married. What do you get in a marriage these days? A bloviating feminazi who feels she's entitled to every cent of your paycheck even though she earns her own because she "does the lion's share of the housework" (which consists of paying the nanny and maid from your money); a whiny shrew who thinks that her way is the best way about everything, even things about which she knows nothing (try buying a car with an opinionated woman); a bossy know-it-all who thinks a degree in Women's Studies makes her an oppressed victim of society; and an eventual divorce in which she takes custody of the kids even though you wanted custody, and then takes custody of 90% of your paycheck because she took custody.
I thank the imaginary sky gods that my wife is none of the above. Imagine getting married these days to some fresh from college girl who was indoctrinated by her libtard professors and indoctrinated sexually by half the campus, male and female. Shudder.
And then there's all the tax penalties for being a married person. I don't even need to list those on this board, y'all already know about 'em.
(And yes, progressive women, I used the words "feminazi" and "bossy" and I don't give a flying shit if I offended your pissy little political correctness consciousness.
What the world needs is more women like Miffed and Ms Creant. What the world needs less of is more women like Sandra Fluke the Puke and Hitlery and Piglosi and Mooch.
I just deleted my profile on Match.com.
Never fear, the NSA has it stored in Utah if you decide to rejoin.
What do you get in a marriage these days? A bloviating feminazi who feels she's entitled to every cent of your paycheck even though she earns her own because she "does the lion's share of the housework" (which consists of paying the nanny and maid from your money); a whiny shrew who thinks that her way is the best way about everything, even things about which she knows nothing (try buying a car with an opinionated woman); a bossy know-it-all who thinks a degree in Women's Studies makes her an oppressed victim of society; and an eventual divorce in which she takes custody of the kids even though you wanted custody, and then takes custody of 90% of your paycheck because she took custody.
I thank the imaginary sky gods that my wife is none of the above. Imagine getting married these days to some fresh from college girl who was indoctrinated by her libtard professors and indoctrinated sexually by half the campus, male and female. Shudder.
And then there's all the tax penalties for being a married person. I don't even need to list those on this board, y'all already know about 'em.
(And yes, progressive women, I used the words "feminazi" and "bossy" and I don't give a flying shit if I offended your pissy little political correctness consciousness.
What the world needs is more women like Miffed and Ms Creant. What the world needs less of is more women like Sandra Fluke the Puke and Hitlery and Piglosi and Mooch.""
First let me say this post is so perfect I wanted to requote. Three years ago I sold everything I had and moved to Asia. I spend my time between Thailand, Philippines, Burma, or other points here in Asia.
I have never looked back. It was the best decision I ever made in my life. I have a thriving little business here in Asia. I stash all my cash. And live a life most people can only imagine.
I'm 58 years old. I've got my pic of 30-year-old professional girls, or hot looking for rent 18 and above. My current girlfriend's 31 has a brand-new car, and thinks I'm gods gift to her.
Is it about the money? Hell yes it's about the money! But after a couple of ex-wives, I found it much, much cheaper to rent.
Buddha has been very good to me.
Ridiculous hyper exaggeration and nonsense galore.
If anyone needs to laugh and cry at the same time...Google 'I hate my married life'......blog on why a man should not bother getting married.....
"Also, Fuck you Krugman"
"Also, fuck you, and the bus you came in on, Krugman."
There, fixed it!
Yeah, but life iS VERY good for your nearest hardly-working, over-compensated "educator".
ALL on the backs of students and their parents.
"I'm actually struck by how little (our ability to rape and pillage) has changed".
What a piece of shit........
Thanks for posting, it actually cheered me up. Anytime i feel down, I will just remember this cheese dick and instantly feel better.
It seems that Nobel Prizes are now reserved for total losers. Except Obumboy, of course..............?
Love the dead eyes on the image of Krugman used here. Made me think of Azazel.
Future generations will huddle around the pile of burning furniture and tell stories about him to frighten the hungry children into silence.
dude.. of course..
Some of them were practically classmates. At least Bernake and Draghi did MIT together with him.
And then we had mr. fisher doing the teaching... nice
You don't understand..Krugman doesn't really beleive any of this shit..He was trying set the record for having said more stupid things than anyone else when some "Bozo" gave him the Nobel prize...So when something works keep doing it till it doesn't!
He should invest in a TelePrompTerTM.
What a fucking psychotic twit writing psycho shit for all the other psychos out there.
Dear Headbanger:
I appreciate your comments, but your Avatar is sooooo... gross!!!
If by gross you mean awesome..then I agree.
;)
Just imagine the avatar is PK and your hand is on the back of his head.
The only avatar on this board I look forward to more than headbanger's is 4chan's.
Brilliant interview Professor Krugman. Ignore these ZH fools, they are nothing but intellectual dwarfs.
You are no MDB, try harder please.
If by "brilliant" you meant "pathological" and by "Professor" you meant "fuckwit" and by "Krugman" you meant "flaming asshole" then I concur 100% with your statement. If that's not what you meant, then I submit that you, sir, are the only intellectual dwarf in these parts.
This krugman clown acts like he marches to the beat of his own drum but he's fully complicit with the tribal trend of economics. The laughs they must have behind closed doors at the worlds expense.
Thanks for teaching us the math, boys. The goyim will take it from here. We'll hack out our own destiny
oh yeah.
fff ffffffff fffffffffffffffffffffffff
ahhhhhhhmmmmmm
pass that bong around, mahn
There is no "nobel prize for economic science"
There should be one for "Economic Science Fiction".
Global Warming Alarmaists and Keynesian economists could compete with wreckless abandon.
the leading economist of our times? who was and still is utterly convinced the EUR was the worst idea ever? and still hates, hates, hates what the eurozone is doing, because it's exactly the opposite of what he preaches? just saying
The EUR in its current form is the worst idea in modern "European" history. Hating, hating, hating what the EMZ is doing is pretty logical.
That being said -- Krugman's hatred for the EMZ is different than mine and most Austrians -- but still
EMZ = Total shit.
Just saying.
does the Austrian School have a recipy book for currency wars? You don't have alternatives. If you had the DM beck... it would be just like the CHF, a bit larger and yet in search of a shelter
Sure, you'Re right. It would be expensive, but then again, where does Germany get all its resources to build your BMW and the gas to keep the lights on at night? (Not inside Germany). So if the DMark went skyhigh, COG for the manufacturings process would fall through the floor.
Then, if BuBa decided to step in and QE/ABS the DMark (buy Gold) to slow it down, then it could -- and any "benefit" of QE qould remain within the country and not get schloshed around EU Style.
I was in Italy this past weekend. Amazes me that country considers itself first world.
Krugman lives in Neverneverland, totally detached from reality. His answer on the minimum wage shows he never asked anyone the simple question: "Were you ever underpaid?." Many firms in the USA operate like the oil field contractor McCormick in "The Treasure Of The Sierra Madre." They rip off "foreigners and half-baked Americans" of their wages. Everytime an outsider like a labor lawyer looks at American employees to find if they are being ripped off for overtime pay, for vacation pay or for illegal wage deductions, sure enough, money is being stolen from employees. Top end restaurant owners in New York City looted tips with impunity in New York City until lawyers realized that their 30% legal fee, their share of the millions they collected in illegal tip appropriations, adds up. New York's Labor Department was like a statue, a patronage dump that hired incompetents and spent money on computer software that didn't work (e.g. $800,000 on one consultant's defective case management program for wage cases). The political hacks were more interested in collecting civil penalties (like Ferguson, Missouri) from minority business owners than anything else. It is no surprise that labor lawyers bypass corruptly run state agencies and courts and go directly to federal court with their wage claims. But Krugman wouldn't know anything about that because Krugman, like Al Gore, is a Nobel prize winner who is a pretentious dolt.
What did we do to deserve the insufferable Krugman?
Elsewhere:
Priorities: while Obama dithers on ISIS strategy, State Department sponsors RECYCLING workshops in Pakistan:
http://tinyurl.com/lme7yho
He is confusing business "cycles" with his crack habit
Even when he is proven totally wrong, he will say he's right.
A true Nobel Prize winner, just like the other always right guy, Obama.
Mate I gotta tell you, I'm lying by the pool in Sardinia on final of holidays and just read your comment. The people beside me are giving me funny looks and wondering what the fuck I am laughing at.
There is no end as there is nothing new under the sun. So many in the spotlight, Krugman included, are simply priests worshiping stone idols just like in ancient Greece. There is no difference except the colors.
@jubber: That's exactly what my ex said...
I think Glenn Beck put it best: Show me your friends and I will show you your future. (This is not an endorsement of Mr. Beck) Just take a look at who Mr. Krugman's acolytes are and you will see definitively where we are headed...
I actually feel a bit sorry for him believe it or not.
DavidC
product of public education
Product of a Princeton Education.
and the ultimate "yes man" for the status quo.
Krugs will never be protein deficient. He gets his fill one "ahhhhhh" at a time.
pods
That is a BAD visual!!!!!!!!!!!! Someone pass me the bleach for my eyes I must cleanse them.........
"There are reasons to believe that we’re facing an era of persistent economic weakness, which means that we’ll only feel prosperous during bubble periods."
And you need a PhD and a Nobel Peace Prize to fucking figure that out!
Yes, but what's his opinion on the "burden of the dollar as a reserve currency?" Are all of those dollars flocking back home going to be redistriubted to minimum wage workers in an effort to collapse the facade in a manner to their liking (i.e. "blame everything but monetary policy").
This game is getting interesting, to say the least.
"which means that we’ll only feel prosperous during bubble periods."
I suppose "feeling prosperous" means spending like drunken sailers?
That statement was so stupid I was incredulous. You know you only feel really good after a few hits on the bong, too. You'll only feel really good after we take the needle out of your eye.
What also gets me is that he gets the student debt loan question from Princeton of all places. As a Nobel Prize winning economist, Mr. Krugman has no problem fixing the minimum price of labor at something over $10/hr. Perhaps he would also like to fix the price of college so those poor students won't have to suffer the indiginities and inconveniences of long term debt service? Maybe the price of Princeton should be something the $10/hr crowd can afford, yes? That degree is Mayan Lesbian Underwater Basket Weaving and Culture is certainly worth a quarter million but maybe we could do it for half that?
These people are elitisit, arrogant, self-serving twits. I could live with that and ignore it except they are in charge of the f-ing world and my economic life.
Asshat alert!
What a Fucking Retard.
If he thinks BTC is a fad that's going to collapse, then I have to stock up on the things.
Hey Krugman, there's a tree out there making oxygen for you. Find it and apologize...
I wish I could see things from your point of view but I have trouble getting my head that far up my ass!
Umm how about only a small percentage of us are feeling prosperous only during bubble periods, captain obvious.
Can't bear to see this cocksucker before my second cup.
of vodka.
"And no, the Fed’s job is to stabilize the economy, not to protect incomes of some groups at the expense of that mandate." ---
The numbers (who has gotten "rich" as a result of fed policy) contradict this statement asshat.
the sheer number of blatantly false statements is staggering
Who is "we"?
There is no "us".
There is no "our".
There is no "we".
There is only you and I.
So the Nobel Prize , isn't all its cracked up to be.
If I somehow won a nobel prize I'd cry, and right after that I'd reject it. To wit, the president won a peace prize w/o doing anything, and has since bombed the rest of the world into oblivion, AND this political hack-onomist has won one for "Economics". The Nobel prize once meant real achievement in science, but now it is nothing more than a socialist awards show. No thank you.
Go on, take the money and run...
"Mathematics have given economics rigor, but alas, also mortis."
-- Robert Heilbroner
"Mathematics is to economics what lipstick is to a pig."
JenkinsLane
Oh, boy. What do you mean “artificially low”? Compared to what? The appropriate level of the interest rate, most economists would say, is the rate that gives us full employment without inflation; since we don’t have full employment, that says that rates are too high.
Priceless. And he gets a Nobel Prize?
If he didn't exist already, we should invent the guy.
Obomber got a Prix as well, what do you need to qualify to get one? Do I need to say more...
O yes, I almost forgot to add this little gem:
And no, the Fed’s job is to stabilize the economy, not to protect incomes of some groups at the expense of that mandate.
Well, I on the other hand didn't know that the Fed's job was to actually start destroying those very same incomes. Bit questionable from a moral point of view, IMHO.
4% inflation???????!!!!!!!!!!!
And what would the REAL inflation be at that pretend level?!
8.50 euros per hour is equivalent to $15 per hour.
What?
8.5 x 1.3=$11.05
And this guy won a Nobel prize in economics?
Fuckin' scary...........
His math is right on. he is an economist.
"His math is whatever he wants it to be. he is an economist." -- fixed.
Debt is GOOD, unless it's student loan debt. Bubbles are GOOD, unless it's a student loan bubble.
"New York’s minimum wage is currently $8 per hour. Germany is introducing a national minimum wage next year of 8.50 euros, equivalent to $15 an hour."
Umm, 8*1.29 = 10.32 not $15. You genius's at Princeton are only off by 30% + but hey, we have to prop up the libtard "narrative"
www.traderzoo.mobi
Maybe he's talking about post 9/11? (it changes everything, ya know)
We should use his calculations as an indication to what he sees as the "base" level of US Dollar and Euro comparison.
Since the EU is trying to reduce their currency from here, much less where Krugman says it should be, we are in a RACE TO THE BOTTOM of major currencies in the world.
Success!!!! BTFD
The fact that Krugman hates Bitcoin should be the contrarian indicator that everyone needs to take a serious look at Bitcoin and the underlying network that is far superior than the currenct legacy banking system.
That just might be the single appeal of bitcoin to me. ;)
Fun fact: Gartman is anti-btc too.
Bitcoin FTW :)
What's a Krugman?!
An American, not US subject.
says Paul Bubble
I am currently taking an advanced Macroeconomics course. The required text is Krugmans. As I read it, I can see that he is decent at basic Keynesian economics. But of course, that is only a part of the story, which is why I have been dreading this required class. Let me give some hope here though; My Macro class is presenting Austrian economics along with the text in a very fair and balanced way. The Professor (who is brilliant) is strongly encouraging the students to question economic models. Imagine that! Hope he doesnt get canned.
Withdraw and get a partial refund.
Don't take "Money and Banking" either.
I don't know which is worse, knowing about AE while taking econ courses, or not knowing (which was my case back in the early 90s)?
Honestly, challenging models is child's play though, as they are all infinitely inadequate. If you want to challenge something, attack the legitimacy of the "meaning" behind the aggregates. Dare your professor to defend those worthless metrics in regards to the individual actions that comprise them.
Then sue the university for teaching pure BS.
Excellent! Hopefully, you will get Hayek and many others. Compare what Hayek and Friedman wrote to Krugman. The real challenge is to read, contemplate and then decide what or which is true. Best of luck to you, Nevermore.
Four percent inflation is catastrophic over the long term. The purchasing power of your savings is cut in half every 18 years. And four percent inflation without wage growth means everyone becomes impoverished (except tenured professors). Krugman should be forced to take public transit clear across the US so he can see what is really happening beyond the gated confines of Princeton.
Plus that much inflation, without normal interest rates forces savers into the hands of WS Scumbags to fight for some semblance of savings.
Granted this is a university fluff piece but he really does not seem to think much.
Krugman is a moron and his own statement admits he doesn't know. Certainly a Nobel Prize winner should know whether 3.2% or 7.1% or some other number is the right number. To admit they do not know is to admit that the system is complex and they are not in control.
If money value is stable the natural course is actually deflation. Why? Because productivity improves roughly 1-3% per year over time. So, your improved productivity should buy more stuff, not less over time. Put another way, an hour, pound or gallon of your labor should buy you ever more goodies. The opposite is true.
Notice, that Krugman basically said F-You to retirees, as well. That is soooo incredibly elitist but I love the reveal of the soul. In a neutral or unmanaged economy no group has any given advantage over another. In the world of central planners it is all about the elite making choices and picking the winners and losers. The most funny and amazing thing is that "they"are always in the winners group...every time!
High IQ moron.
I would prefer not to ever hear anything about PK again. ZH does not have to be his press agent. He is sooooooo yesterday.
I skip Krugman articles, have for years. Nothing to see here.
I have to disagree. It is of value to see the manner at which he promotes the scam du jour, as it's his job to put this idiocy into the "ideasphere" so that it becomes "conventional wisdom" over time.
And to see which other sophists parrot it.
As always, it's good to know your enemy.
Paul "Useful Idiot" Krugman
Dance, pablum-spewing monkey, dance!
Krugman = Asshead
I didn't know that the ability to pay US taxes was a fundamental source of value.
So what US government is doing is pushing the value of the dolar higher by increasing taxes?
Dipshits like Krugman think that mathematical principles dictate economics. It's all numbers, right? Wrong! Economics has a huge emotional piece to it that people like Krugman just don't get. No economic models can take this into consideration. They don't think there is a problem with things the way they are because they are only looking at the numbers. They refuse to see the distorsions this causes because the "science" of economics is all about statistics and equations. Never mind the fact that the economy is also a manifestation of human ingenuity, success, fear, greed, corruption and failure.
"There are reasons to believe that we’re facing an era of persistent economic weakness, which means that we’ll only feel prosperous during bubble periods."
We are in a bubble, period. Just who feels prosperous in this economic depression?
It appears he still has his left ear. I suppose that is good.
Krugman is a phenomenon of the Fed. When the Fed goes, Krugman goes with it. Unfortunately, underneath all the bluff is total financial and pollilcial criminality. As Jesse’s Café American describes Krugman's latest Fed propaganda:
“This is preposterous humbug. It is the worst sort of excuse making for the failure of leadership.
"Does he notice that this latest 'recovery' from the aftermath of the latest financial bubble is resulting in the greatest disparity of wealth in US since before the Great Depression? And that it is growing worse, not better?
“His statement that the Fed's overwhelming mandate to provide 'stability,' for which you can read the health of the banks, is superior in consideration to protecting the income (wealth) of some groups like retirees, should give you a good idea of the Fed's actions in the future when this current asset bubble implodes, and the Banks come back to their trough again. Bail-in anyone?”
Asks Jesse: “Does this criticism seem harsh?”
And answers: “[G]iven that too large a part of the country has been enduring the equivalent of an economic 'Death March of Bataan' for the last seven years because the Wall Street wing of the Democratic party, which was given a mandate for reform, has perpetrated so many poorly thought out and corporate friendly economic policies, written by non-elected and barely accountable Banksters operating largely in secret, I don't think so. And they can't keep blaming it all on the Republicans. They are both failing, and badly.
“This should give you a fairly good idea where the financiers and politicians are coming from these days. Even the so-called 'liberals.'
“Protect yourself.”
http://jessescrossroadscafe.blogspot.com/2014/09/gold-daily-and-silver-weekly-charts_9.html?utm_source=feedburner&utm_mediu
Somewhere a circus sideshow is missing its bearded lady.
The more I learn about "Economics", the more I see that it has very little ties to reality, or logic. What an imbecile, this guy.
Can a “science” be anti-Semitic? Noah Smith, assistant professor of finance at Stony Brook University and Bloomberg freelancer, says, Yes!
Hunter Lewis asked recently in Mainstream Economist Freaks Out:
“And what does it tell us when he accuses his target, Austrian economics, of having ‘anti-Semitic overtones?’–and then documents this outlandish charge by linking to someone’s video on U-tube?”
I think it tells us that a lot of economicsts are charlatans; and I offer Krugman and Smith as proof.
http://bastiat.mises.org/2014/07/mainstream-economist-freaks-out/
Liam Halligan wrote in The Telegraph that “academic economists, with a few honourable exceptions, have little to say about uncomfortable realities” and that “those who do, it seems, can kiss their drea makes his case: “The Nobel prize in economics isn’t really a Nobel prize. There are five of those – in physics, chemistry, medicine, literature and peace. These ‘true Nobels’ have been awarded since 1895, the year before the death of Alfred Nobel –
"It was only in 1969 that the Swedish Central Bank (pointed out in earlier comments here) began dishing out a medal each year for research in economics, awarded in Nobel’s name. It remains separate from the main prizes established in his will – and so it should. That’s because Nobel was a scientist – and economics, categorically, is no science.”
http://www.telegraph.co.uk/finance/comment/10390981/Time-to-stop-this-pretence-economics-is-not-science.html
Hayek got it right, as usual:
"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."
What I love about Austrian economics is that it is actually sort of the anti-economics point of view. It is like asking a (true) anarchist about what type of government is best. Austrians get the point that an economy is infintely complex and dynamic while central planners are finite and simple. The two never go together very well.
Good job with the Keynesian Princeton math. On what planet is an 8.50 euro minimum wage equivalent to $15? Fucking tourists.
Pop Quiz:
Which decade of the 20th century does Paul Krugman live in?
Krugman himself is a Fed bubble. War is a Fed bubble. Congress is a Fed bubble. When the US economy implodes, he and his ilk and all their wars for global consolidation will implode with it.
When the US Implodes | LewRockwell.com
By Jack D. Douglas
September 10, 2014
When the U.S. pushed occupied Europe into Nato to help stop Russian expansion from E. Europe, Senaror Robert Taft warned that it should be ONLY until Europe recovered and could defend themselves, especially Germany which the U.S. and Britain bombed into the stone age and insisted on unconditional surrender rather than letting the General Staff get rid of Hitler and make peace with enough forces to keep the Russkies out.
NATO is now an imperial U.S. puppet and Rasmussen, the head of Nato, is the only warmongering Dane since Hamlet’s step father! I have argued for years NATO is an atrocity, not a peace keeper.
I’m 77 and was born in Miami in 1937, very Southern on my father’s side, but my mother and her large family were all English-Canadians from Hull, England, and Hamilton, Ont. I think most Canadians, like most UN nations, are being forced by the U.S. to go along with these insane wars by threats of withdrawing the nuclear umbrella, by secret extortions and blackmail of leaders [because the U.S. secret police have all kinds of secret tapes and videos of rulers doing naughty things], by bribery of all forms, and by implied threats of worst, including “accidents” by third parties (sub-contracts to Murder Inc. small corps. by the off-book CIA and FBI organizations). …
Be of good cheer. the u.s. will probably destroy itself financially soon and we Americans will go back to our roots in freedom and brotherhood, including brotherhood with Canada for sure. It will be very hard to rebuild our nation, but i think most of the young people, certainly my children and grandchildren and lots of in-laws and young friends are able to do it and will.
And other nations will do the same, as Russia and China are doing now with fierce hard work and determination.
Certainly Canadians will go free, return to their roots and be very peaceful and friendly around the world.
Carry on, steady as you go….
Jack D. Douglas is a retired professor of sociology from the University of California at San Diego. He has published widely on all major aspects of human beings, most notably The Myth of the Welfare State.
http://www.lewrockwell.com/2014/09/jack-d-douglas/when-the-empire-financially-implodes/
"Feeeelings, nothing more than fee-a-eeeelings. Wo-oo-oo feeelings."
Learn those lyrics and gain a doctorate in economics at a prestigious institution.
I remind
The Nobel MEMORIAL Prize In Economics is not a Nobel Prize. It is awarded by the Swedish Central Bank and not the Nobel Foundation....which gives it's awards for excellence.
I love when ZH/Tylers go after Krugman. I'm convinced he's a charlatan - and a dangerous one, although it may be that he believes his own bullshit.
He certainly doesn't question the monetary system - either the waste inherent in paying 6% to private banks for the privilege of printing the national fiat, or fractional reserve banking. I believe he was against the repeal of Glass Steagal and I know some on the right weren't but that was a horrible decision and it benefitted and harmed exactly who you would have thought.
Hedge funds are continuin to hire monkeys to throw darts - and I've noted before, and noted that no one gives a shit, but that hedge fund metrics are likely bullshit, just like in 2006/2007 - and if you could calculate true Weighted Average Maturity versus what they are reporting - bet against the ones with the largest differences, because they will bleed first and most...
[using interest rate reset dates *as* maturity dates was a trick used in 2006/2007 and if you look at the funds that collapsed, the correlation between laerge differences in reported WAM and true WAM and which funds lost the most money was stark]
I appreciated this article. Seeing his exact words in response to the questions gives a view into the mindset of this guy and his (and his professions') blind spots.
"Even ill-conceived spending can help create jobs, so bubbles aren't necessarily bad"
=
Throw money at the problem and if a little of it sticks, it must have been right.
Mr. Krapman is a genius. I doubt he is actually stupid enough to believe the crap he spews but he is smart enough to spin it into something that looks digestible to the uninitiated. He is to economics what Suckshit Fraud was to psychology, and continues in the fine tradition of bringing plague to Amerika.
Krugman cast his lot long ago. As one of the officers in the propaganda dept., he has been chosen to do his job going down with the keynesian ship...
Nothing by or about him is relevant any longer, past circling the bowl. Waste not your effort nor emotion.
After reading the torrent of hatred directed at professor Krugman, I have a simple question to ask. Who was correct in predicting that inflation would remain low as a result of inadequate demand? While everyone was screaming that inflation would explode, Krugman's model proved correct. I suspect that is the reason he attacts such fury. He was right, and his numerous critics were wrong.
your a complete moron if you are taking your INFLATION numbers from the US government. US inflation is atleast 10%. Ask John Williams Shadow Stats.
What do you think real estate property prices double in less than 12 months tell you in the East???? darrrrrr. In 2010 a $6.5million dollar shop is now worth $30million. Rent has only increase 50% for these properties since 2010.
Its pretty clear you are not an active participant within the capital markets or even the economy. When my chocolate bars shrink 15% but remain the same price does that mean it cost less?
Man, some people are sooooo dumb its beyond belief.
Krugman is a hack! Well paid by the powers at be.
Yes, I'm glad that healthcare, edication, rent, power and groceries have all remained stable too. Krugman also keeps ranting about global warming and that is another reason to dismiss his sorry ass.
But I phones are cheaper!
I could give a rat's ass whether he was 'right' for a few years as measured by the comically-manipulated CPI. In real terms (food, gasoline, clothing, shelter), inflation is running 10-12% annually for the past 3 years.
Krugman (The imperial statist dildo) is fully supportive of destroying the fiat-dollar, and indirectly supportive of the daily incremental consumption of American individual liberties.
He should do the world a favor and suck-start a shotgun.
The reason he attracts such fury is he is a PHD moron, cluelessly blinded by his keynesian brainwashing, who somehow continues to be published and taken seriously despite all the historical and current empirical evidence proving him wrong. BTW there is high price inflation in products and services utilized by the wealthy and connected class who actaully have access to all the new currency being created. And what do you think the new record highs in the Dow are based on? Fundamental earnings?
You have to be an oblivious idealog to support him.
Krugman is only right when he’s able to block the truth. And the truth is we are dealing with substantial inflation. The actual target of said monetary policy and fellow travelers like Krugman is the truth.
And Google is on board with the lies, a part of the cover up.
It’s done via government control of the Internet, through Google. Of the first seven results when googling Google research for “Shadowstats inflation since 2000,” six results directly attack and dismiss the research of John Williams' Shadowstats.
This is like Pravda; the government’s official line is that inflation is so low that it is not a problem and anyone who suggests the opposite is not only wrong but they are dangerous and therefore must first be debunked before you can see their research.
Here are the Google research results given in order:
Inflation Calculator – Shadow Government Statistics (ironically, the exact Shadowstats’ inflation calculation Google gives is not available unless you are a Shadowstats subscriber).
The Absurdity of ShadowStats Inflation Estimates | Noboby
The Trouble With Shadowstats | azizonomics
Why Shadow Government Statistics is vsery, very, very wrong…
Tom’s Inflation Calculator – Tom’s Home Page
Shadowstats debunked |Econbrowser
Policy and Economy: Shadow Stats debunked, part I
The true inflation ratthat Google and the government do not want you to believe comes from Goldsilver.com:
“In order to calculate 'real' highs for gold one has to adjust for inflation. When using shadowstats inflation statistics we'll see that the 1980 peak of $850 equals $9000+ today. The inflation statics published by John Williams at www.shadowstats.com present a more realistic picture of true US inflation numbers. As this chart clearly demonstrates gold is far away from making new 'real' highs.” -- valcambigold.com MAY 20, 2013
http://goldsilver.com/news/using-shadowstats-inflation-statistics-we-ll-see-that-the-1980-peak-of-850-equals-9-000-today/
Glad somebody noticed what google is doing, they are doctoring their search index. Search for a recipe and it's fine, search for something illuminating about the illuminati and you get directed to less scholarly more radical sites. They are also protecting the Jewish searches to keep us goyim dark. Google is a nice Jewish organization after all. I'm in the market for a site/search engine that finds back the stuff Google scrubs out, anybody knows if anything like that is out there? Also where can I find vids youtube censors, the only vid that should be censored is pedophile, they are censoring war atrocities (most come from TPTB which youtube is protecting)
A sign of the times, isn’t it, that Google, co-founded by Larry Page and Sergey Brin and financed by Sun Microsystems co-founder Andy Bechtolsheim --all three Jewish and all three who have operation centers in Israel – is taking the lead in diversity employment this year in Silicon Valley by creating “a truly diverse workforce.”
Surely this is a political companion piece to the Jewish-sponsored 1965 Immigration act to perpetuate cultural change in America - -- the purpose of which was to deliberately counteract America’s white European ethnicity, limiting immigration to a Third World influx so as, in the sponsors’ words, to make America “safe” for the agenda of their people.
Never mind that one out of four people now living in Silicon Valley are Latino, according to Silicon Valley Latino Report Card 2011. And Asians make up the majority of tech occupations in the Bay Area, growing from 30% in 2000 to more than 50% in 2010 in Santa Clara, San Mateo, Alameda, Contra Costa and San Francisco counties combined, according to Census Bureau statistics.
When you find an alternative to Google, let me know. I too am looking for Internet information that is not “researched” by a rigged search engine.
http://www.hfsv.org/FINAL Version Latino Report Card.pd
http://www.mercurynews.com/ci_22094415/asian-workers-now-dominate-silicon-valley-tech-jobs
You must just lap up the numbers provided by Krugman and company, because you obviously haven't shopped for food or household goods and observed real inflation. Tide just reduced the size of its products, increasing prices around 8.7%. That is after a price increase about 2 years ago. Saline solution went from $4.64 to $4.84 and is now $5.24 for a two-pack over the last 3 years. Toilet paper not only decreased in sheets per roll at the same price, but the width of the roll is shorter. Department store facial care items have had increases every 2 years or so since Ben's QE started. These are just a few examples of price increases for everyday goods. Rent has been increasing steadily even though there is higher unemployment and wages have not been increasing. The numbers don't represent reality period.
The methods used to calculate inflation have been changing over the last several years. Convenient huh? If the formulas don't produce the desired number to show to the public, just change the way it is calculated until you get the number you want.
I like Krug(man)errands
Krugman should be 'promoted in his career' . . . to the gulag or alternatively, the lunatic asylum. What a shill for the imperial global statists.
The whole contrived, heavily manipulated system must be burned to the ground before the economy can achieve healthy real growth.
I still have yet to encounter a single economist that ever ran a successful (That means long term profitable) business, or even make one payroll.
This clown and the rest of its ilk could not even run a lemonade stand on single hot Summer day.
Dollars for Donuts.
I would wager than one could take the ENTIRE Fed economic staff - wherever located and across its entire 100 year history - and match them up against any American high school selling candy bars to make it band camp or charter the bus to regional finals and it would be a photo finish.
Re-education for these jack-booted morons lies at the bottom of the sea.
I like Krugman for one reason though.
Regardless of the social occasion or climate he always has that special "I just fucked the neighbor's cat" look.
Always good for a laugh while the Fed kills Americans.
i love you
no homo