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World's Oldest Central Bank Asks Paul Krugman To Shut Up
About a year ago, everyone’s favorite easy money advocate Paul Krugman accused the world’s oldest central bank of turning Sweden into Japan by adopting a policy of “sadomonetarism.” The Riksbank, Krugman claimed, unnecessarily transformed itself from “recovery rockstar” to deflationary deathtrap by raising rates too early. Here’s Krugman:
"In 2010 Sweden’s economy was doing much better than those of most other advanced countries. But unemployment was still high, and inflation was low. Nonetheless, the Riksbank — Sweden’s equivalent of the Federal Reserve — decided to start raising interest rates."
"There was some dissent within the Riksbank over this decision. Lars Svensson, a deputy governor at the time — and a former Princeton colleague of mine — vociferously opposed the rate hikes. Mr. Svensson, one of the world’s leading experts on Japanese-style deflationary traps, warned that raising interest rates in a still-depressed economy put Sweden at risk of a similar outcome. But he found himself isolated, and left the Riksbank in 2013."
"Sure enough, Swedish unemployment stopped falling soon after the rate hikes began. Deflation took a little longer, but it eventually arrived. The rock star of the recovery has turned itself into Japan."
Why would they do such a thing? Well, they were apparently concerned about two things: inflation and a housing bubble. As reasonable as that may seem — especially in light of the fact that not two years earlier a bursting real estate bubble had collapsed the entire global financial system — Krugman wasn’t buying it, and accused the central bank of “inventing new rationales” for its misguided attempt to perpetuate a sound money policy. Here’s Krugman again:
"Sadomonetarism is an attitude, common among monetary officials and commentators, that involves a visceral dislike for low interest rates and easy money, even when unemployment is high and inflation is low. You find many sadomonetarists at international organizations; in the United States they tend to dwell on Wall Street or in right-leaning economics departments. They don’t, I’m happy to say, exert much influence at the Federal Reserve — but they do constantly harass the Fed, demanding that it stop its efforts to boost employment…"
"Where does this gut dislike for low rates come from? At some level it has to reflect an instinctive identification with the interests of wealthy creditors as opposed to usually poorer debtors."
Got that? Essentially a sadomonetarist is a job-hating heretic who doesn’t believe that printing mountains of fiat currency solves economic problems and who is motivated by an overwhelming desire to perpetuate global inequality by enriching creditors at the expense of impoverished debtors.
Anyone wondering if the Riksbank is ready to do a mea culpa now that Sweden has joined the Eurozone, Switzerland, and Denmark in NIRP-dom, got an emphatic answer today from the bank’s Deputy Governor Per Jansson who thinks Krugman’s assessment may indicate that he doesn’t have any idea what he’s talking about. Here’s Jansson, via Bloomberg:
“When he described Sweden as sort of a deflationary economy, and makes these parallels to Japan, you wonder, has he ever had a look at the data?”
“Has he seen how Swedish GDP recovered over these crisis years? It completely outperformed the euro area, of course, but even the U.K. It’s close to the U.S.’s performance.”
Jansson goes on to suggest that not only were the bank’s actions not indicative of an institution suffering from some psychotic desire to drive up unemployment and inflict pain upon the masses, they were in fact based on “normal things” like the fact that the rate of household credit expansion was running some 50% ahead of overall economic growth. Krugman’s answer: the rapidly expanding economy wasn’t expanding rapidly enough and the rate at which things were getting more expensive could have been higher:
“Yes, Sweden was growing fast, but unemployment was still above pre-crisis levels and there was good reason to believe that there was still a substantial output gap.”
“Growth in a depressed economy isn’t a reason to raise rates. On the inflation front, core inflation was well under 2 percent.”
At the end of the day, Jansson thinks there’s still hope for Krugman — he just needs to stop writing and start reading.
“You would wish when he says this, that Sweden looks like Japan and stuff,” that he “write fewer articles and have more of a look at the data and then come back again.”
“I don’t know why he does that; it’s a mystery and it doesn’t make him come across as a guy who is very well informed.”
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When reality reasserts itself perhaps we can bring back tarring and feathering. Perhaps very hot tar would be appropriate in this case.
he should be whipped in public with freshly removed Donkey Balls
Why remove them? Leave them attached.
Håll käften Krugman du Mörön !!
How 'bout we let the latest Swedish supermodel slap him silly on PPV? Who would not pay to watch that?
Only if she uses spiked gloves.
If economies were ocean vessels, Krugman would be Alang.
Great rebuttal of one of krugmans arguments in this post!!!
http://debtcrash.report/entry/debt-taken-on-by-fools
The real problem is that if the Riksbank is right, Kruger is wrong, and that is unpossible.
I have been saying Krugman should shut up for years....years.
I remember the day that bastard won the Nobel. I read the citation and thought it was shaky at best. And the ass has taken it upone himself to think he knows everything. Where is that video of the Spanish economist dressing him down on thinking he knows everything about economics? I want me some more of that.
I've seen that video, it's hilarious. The look on krugmans face was priceless. And he could barely respond to the guy , don't think he really did anything but accuse the guy of being ride for talking about him. I guess krugman places himself in such an echo chamber that he isn't used to having people openly contradict him and call him out like that. The Spanish guy was very polite too , way more so than I would be considering how many people he has helped impoverish through his economic ideas.
No, the real problem is they are right, which of course the Krugman will never shut up.....
Um, team depends, you may want to rethink your punishments. Some people might pay for that experience
I would like to see Krugman have prolong suffering, but I lack patience, and would like to see the return of the guillotine.
Crazy Krugman's only real expertise is one of hubris! His arrogance is greater in dimension than the bubbles his philosophies create. Babylon the Great shall fall -- AGAIN!
my roomate's step-mother makes $79 hourly on the laptop . She has been fired for 10 months but last month her pay was $18694 just working on the laptop for a few hours. see here... www.globe-report.com
You cannot ask a communist to shut up.
You have to make them shut up.
Force is the only thing they respect.
Same applies with central bankers and their "economic engineering".
Speaking of the witch, the Riksbank is going to cut rates again this week (from current -0,10 to -0,20 or -0,30)
The closer the government gets to Stalin’s 5-year plans and Keynes’ Marxist spending by State force, the closer the country gets to failure. You cannot get people to work if they aren’t stimulated by incentive.
Keynesianism is socialism – the state will decide. Communists like Krugman would take away incentive and the independence of the people and transfer it to the experts, the Obamas and Yellens.
That is to say that on the way to Communism, there will be wise old men who will decide. Lenin’s explanation was that we have to get through the sacrifice of some (savers and pensioners and the future of the young and the middle class and property owners) and use the dictatorial controls over the economy and the nation as a stepping stone to eventually reach the goals of Communism, the Workers Paradise.
There are two choices of philosophy in the world - individual enterprise or collectivism. Man either can choose his own future or a collectivist government will choose it for him.
Krugman and Marx are on the same side. Their goal is a one world Socialist State where one small group controls the world; their route is just collectivism.
White liberals made the Obamination possible.
Exactly. The non-whites were not enough to increase the base for a socialist welfare state in America; the immigration shift from Europe to Mexico, South America and other third world regions was necessary. And it was white liberals who joined with the Jews to push through the 1965 Immigration Act with Teddy Kennedy as their point man.
Part of the Jewish family motivation was to change the U.S. demographics so that the white Christian culture would not continue to be dominate and be an obstacle to the Jewish agenda.
And, so, by 1993, Jewish activist Earl Raab was writing in the Jewish Bulletin that America now has a pluralistic culture because of the 1965 Immigration Act used by Jewish political activists to “alter the ethnic composition of the United States.”
Raab argued that the Jewish community took the leadership role in changing the Northwestern European bias of American immigration policy to inhibit anti-Semitism. By “increasing ethnic heterogeneity” in America, he said, the Jews made “it even more difficult for a political party or mass movement of bigotry to develop."
The1965 Immigration Act, still in force, was the primary prompting event for a tsunami of illegals now crossing the border from Mexico. This year, more non-white babies were born in the United States of America than white babies. And, still, Congress will take no significant action.
The Krugmans want everyone else to live equally, as low-level workers for state-run operations, while they live lives of privilege. They want to make all the decisions for those they condsider the little people.
funny , next you are going to tell me jeb bush supporting amnest is because of jews , rather than because he is a nazi who doesn't care about 'america' and never did.
jfk was killed by nazi infiltrators and the cia is controlled , not by jews, who are not particularly welcome to be employed there, but by many nazis.
your spewing of jew hatred , jews as both ultimate capitalists /communists and other causes of every problem is itself part of the strategy of the oligarchy to keep americans mired in their own slavery.
scapegoatism is the refuge of those trying to chain other people to a post against their will. let them take up the the creeds of hatred.
it is tiring seeing so much anti-semitism on zh but i've been coming to this blog of truth for years now and i'm not going to let you hate mongers spew endless hatred without calling you out now and then.
"jfk was killed by nazi infiltrators and the cia is controlled , not by jews, who are not particularly welcome to be employed there, but by many nazis."
If America was run by Nazis, many problems we face today would not exist.
Either you are disingenuous or severly short on cognitive skills.
Well said Jax, and I,m really sick of this constant ignorant use of the word Nazi, what exactly do they mean ? Socialists ? Germans ?(now that would be reeeeely racist). Germanic patriots trying to remedy the injustices of the Versailles treaty. Germans who were alive in the 1930,s and are still alive today ? What ??
Hey assmunch, he never said america is run by Nazis. I know you get excited by the thought and you're just projecting, but alas, reading comprehension is still a basic requirement for engaging someone in debate .
Asking Krugman to shut up is like asking the sun not to rise - futile.
At the end of the day, Jansson thinks there’s still hope for Krugman — he just needs to stop writing and start reading.
In Krugman's defense, it's hard to crack the books when your gig as the bearded lady at the freak show takes up most of your time.
Paul Krugman, professional bullshitter extraordinaire. A man who has turned sitting in an armchair and criticising people with jobs in the real world into a lucrative pursuit.
Well I guess he has a Nobel Prize. And the Nobel Committee would never give their prizes away to poor candidates, would they? No. No. Of course not.
can we name the guy to world central banker....as he seems to be the ONE GUY that has brain and integrity. We are however doomed as BOJ, BOC, FED, BOE seem to be run by lunatics
deleted
Can he please tell the idiots who slobber over Krugman to shut up as well
Stop complaining Jansson and listen. If you print enough money; nirvana will ensue.
I am the light.
Nice to have you on board Paul!
Holy shit, I haven't see you on here in a while. Welcome back.
Guys, this Paul Krugman is funny as shit. Pretty much nails the whole Krugman attitude.
He's a better Paul Krugman than the real one.
thats the real one dufuss
Have you recovered from the headaches caused by the echo chamber inside your skull?
"A few people laughed, a few people cried, most people were silent."
http://www.atomicarchive.com/Movies/Movie8.shtml
fuck you Krugman, I thought you were gone, never to return but it seems you've been lurking here after all
Krugman is a paid ziogangbangkster spokesman/propagandist...
[obviously]
He is the modern version of Keynes the Rothschild ponzi system salesman and bullshit artist extraordinaire.
Our overlords have to prop up a few big mouths on a pedestal to give their fraud legitimacy.
<--- Krugman looks more like a pedophile
<--- Krugman looks more like a serial killer
Trick question...he's a pedophile AND a serial killer!!!
<--- Gay pedophile
<--- Strait pedophile
Pedophile fun fact: did you know that while gays make up 2% of the population, they make up 50% of pedophiles?
That means that if you are a pedophile, you are twenty-five times more likely to be gay than straight.
This is true but I have been slammed by this fact by many claiming the predominant number is heterosexual family man. I claim this has to be false and is only a cover for their activity. Of course this is difficult to prove.
Personally I don't know how to explain the sexual attraction to children as gay or straight. No matter what the label, they should be hung on meat hooks.
Miffed
Agree about the pedos hung by meat hooks. There's no fixing that abominable behaviour. Noone should have to tell you that's wrong. In most people it's naturally not attractive.
Adblock dup post.
Or, perhaps it is pedos that have invaded the gay ranks? Who can tell in such a cesspool? No worries, however, I'm told it's all due to "genetics".
<-----Krugman looks like a bearded potato
<-----Krugman looks like something you left in the toilet bowl
Liberals have no interest in reality or real data. If they did, "global warming" would have died off faster than an NBC sitcom.
Grinder,
Conservatives don't either. And, of course, you're wrong.
We'll just go on believing what our ideology tells us to believe:
https://robertscribbler.wordpress.com/
I'm sure you can find data to suit your purposes.
"...data to suit your purposes"
*Sniff* And no doubt climate modelers can create non-linear dynamics and boundary conditions to suit theirs.
Top or bottom?
Yes.
wait Krugman is from Canada?
This is Napolean Dynamite's other uncle. Uncle Rico's brother...;)
I'm sure Krugman is fuming about this - I predict a week of retorts, minimum. Is "Kicked in the Balls!" a real show - please let it be, because I'd watch a Krugman episode.
Krugman is the last in a long line of Golgafrinchan management consultants.
With an IQ of 42.
Nail gun the ManBernKrug!!
lol !
In researching Krugman I found this on wiki..
"Pathological lying is considered a mental illness, because it takes over rational judgment and progresses into the fantasy world and back"
Please be kind, he has an illness.
this entire "hope-ium" narrative that CNBC has been selling to its viewers over the past 6 years is going to finally put them off the air. if you buy into this shit, you deserve to be out of business for good. and all these hacks pointing to the stock market at an all-time high are COMPLETELY missing the point. its the same fuggin point they missed during the internet bubble & the housing bubble - when you do the wrong thing for a long time (and get away with it for finite period of time) its only a matter of time (not if) before something very bad happens. longer the duration of the bad behavior, worse the outcome.
internet bubble = companies making no $$$ with no prospect of making $$$ ... what could go wrong?
housing bubble = people making $50,000 a year buying million $$$ houses ... what could go wrong?
central banks around the world purchasing government debt with $$$ that doesn't exist, financing involvent governments, forcing them deeper & deeper in the negtive (deficit/debts) ... what could go wrong?
The CNBC bullshit charade relies on turnover.
When their aging marks run out of money and become haters, they rely on "new investors" lol.
Dr.Paul of New York tier 3 college fame needs some friendly advice, so I've cut it down to a simple tearline:
- You are a trade professor. Talking about competitive deflation as being something fixable by debasing runs counter to your work that won you a Nobel prize in the first place. Kindly fix your self. Also, after 10 years of listening to your random crap; pull out a stat engine and try looking at your work before posting it to that god awful blog.
- Your street cred since 1993 is up there with Stiglitz, as a guy who was attached to some of the worst financial frauds & crony technocrat schemes in the past 40 years. Until you run a fund, and can roll in at the last 3 hours in the trading sesson and still clock in a benchmark beat; and are an advisor to HMC's private trust fund & the Echq. kindly see point 1.
- Creepy Cat professor is so 1980. Kindly figure out why lost generations happen, and how to solve that.
- Enron. See 2. Do not talk about energy, finance, or anything in the venn diagram between the two. Ever. Period.
Yes. Just being a bit more common sensical in demolishing this Creepy K. His model anchors on the real economy that should be the dog wagging the tail (financial economy). This has never happened for a long time particularly not so in a highly financialized US economy.
Any rookie trader can tell K that. Immersed in his doctrinal black hole that admits no light, he spins elegant constructs. (Math is not meant to embellish; it is a tool that can be used for any spin).
The proof lies where monetary policy with money printing does almost exactly what Traders love i.e. it props up the financial economy. In simple terms, the money bypass the real economy and "pop" goes Creepy K's model and his ferreting for more data to force feed his fantasy spins.
Economics is a belief system when it comes to prescriptions as markets and economies do not behave viz the laws of physics and the natural sciences. Is he getting it ?
the Riksbank acted responsibly. That is an anomaly among CB's so it "stands out".
Ever wonder about the length of the US housing bubble and the FED's, namely Greenspan's contribution to it?
Tech bubble, derivatives pushing irresponsible lending etc.
Give the guy a break do you have any idea how hard it is to keep all those lies straight? The mental gymnastics involved? The wordsmithing he is paid to come up with daily? Every central banker is talking out their ass. Saying one thing while doing the exact oposite. Besides how is the krugster suppossed to read more with his head stuck all the way up Yellens ass?
So, How many deaths are the banksters/ZWO resposible for? The banksters fund all sides in a war, and the ZWO enables them.
Seems it would make the holocaust look like a drop in the bucket, no?
TAKE BACK HIS GODDAMN NOBEL PRIZE....THAT'LL SHUT THE DOUCHE UP!
Nobel Prize is over rated. See Obomarang.
Interestingly the economics Nobel Prize is sponsered by Sweden's Risksbank - which by itself should tell us something of its "value" (for the most part it seems to be a contrary indicator of sorts).
Officially it's the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.
Yeah, I was wondering why they gave him that prize in the first place.
"Got that? Essentially a sadomonetarist is a job-hating heretic who doesn’t believe that printing mountains of fiat currency solves economic problems and who is motivated by an overwhelming desire to perpetuate global inequality by enriching creditors at the expense of impoverished debtors."
and he forgot to add the most monstrous of all sadomonetarists: us eurozoners, with our "balanced budgets" madness
pass me a baby, I'm hungry
"My kitty is my shield and my turtleneck is my armor to your hateful words" - Kruggles
When the history of these times is written, the name Paul Krugman will be right up there with Ronald McDonald.
Please, Sweden needs cheap money in order to build housing for all those millions of enlightened third worlders thar they are importing daily. With all those billions of people out there it's practically an unlimited demand for cheap money. Riksbanken and riksdagen are pure genius.
Deleted. Sorry double post.
I would like to knock that arrogant prick's teeth out with a hammer.
When this whole monetary experiment explodes and takes down the entire financial system, this Krugman fuckface should be drawn and quartered on live television.
I stink up the place taking a Krugman everyday. It feels great getting rid of one.
" it doesn’t make him come across as a guy who is very well informed.” Well, no. Understandable since he is just a well-credentialed idiot.
Jansson dude! you are the guys that enabled him! take back your prize!
ixnay on the amegay aulpay!
Economics is not a traditional science. There is no way to independently isolate variables and test their effect. When Krugman attributes effect to cause he can only do so by neglecting a host of other causes all affecting the same outcome at the same time. His predictions often prove wrong because he clearly cherry picks data to support his view (showing the track record of those countries that support the idea stumulous works leaving out countries that don't), distorts the truth about the track record of his predictions (i.e. stating our policy failed because the US didn't heed his advise to stimulate more, leaving out the part when they eventually did exactly what he advised), and contradicts himself constantly (i.e. stating in a paper that the consumer price index is inacurate then using it in news articles to support his claims).
Krugmans problem is he is in a pseudoscience field and he constantly has to be intellectually dishonest to make it seem like his field actually has any track record of success in predicting much of anything.
Speaking of never having a look at the data, Sweden today has higher economic inequality than Sweden 30-40 years ago. They still have a stratified society of landed gentry class down to landless poor immigrant and working classes, just like the rest of the world.
PS: Riksbank should challenge Krugman to a debate duel. When he fails to show up, he should be declared a nithing.
The Fed, that greatest of the bastard children of Wilsonian progressivism, has repeatedly - in progressive fashion - brought in over-qualified and megalomaniacal "experts" to tell the rest of us what is good for us. Krugman fits the bill to a tee: egocentric, highly educated, intelligent within the narrow and mathmatical spectrum of economics which brought him a Nobel Prize, in constant pursuit of fame, and incapable of considering any reality test of his ivory tower "narrow-tive". He will continue to spout that narrative all the way to our bottom.
STFU and f**k the f**k off.
According to Natixis:
http://www.ge.tt/5osnEOC2/v/0?c
March 13, 2015
What are the differences in economies where debt ratios are very high?
Debt ratios (public, private and total) are at present extremely high in a vast majority of OECD countries. How does this change the functioning of these countries' economies?
• Fiscal policy becomes more restrictive and can hardly become very counter-cyclical due to high public debt ratios;
• The private sector deleverages, and monetary policy can no longer use the credit channel;
• Central banks have an incentive to conduct expansionary monetary policies to facilitate deleveraging.
In countries where debt ratios are very high, we can therefore expect to see:
• Weaker growth (a restrictive fiscal policy, private-sector deleveraging);
• Deeper recessions (lack of counter-cyclical capacity of fiscal and monetary policies);
• And yet a sharp rise in asset prices (equities, real estate), due to expansionary monetary policies and long-term interest rates that are lower than growth rates.
Paradoxically, excessive debt ratios can be positive for equities and real estate.
Because Krugman is an asswipe.