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Guest Post: The iKrug

Tyler Durden's picture




 

Submitted by Pater Tenebrarum of Acting Man blog,

A Cell Phone Will Save the US Economy

It appears it is after all not Scott Sumner who 'saved the US economy' by urging the helicopter pilot to create even more money ex nihilo than hitherto. What will save us instead is Apple, or rather, its latest product, the iPhone 5. Who needs Bernanke when this wondrous device stands ready to pull the economy up by its bootstraps?

A story has made the rounds lately – propagated by 'economist' (we should use the term loosely…) Michael Feroli at JP Morgan, that sales of the iPhone "could potentially add from one-quarter to one-half of a percentage point to the growth rate of U.S. gross domestic product in the final quarter of the year”.

If we were to assume that he is correct, then what this would mainly tell us is how useless a statistic GDP actually is. However, there are some reasons to doubt the results delivered by his abacus. According to a Bloomberg article:

 

 

 

“Here’s Feroli’s math: Assume sales of previous-generation iPhones continue “at a solid pace,” while the new model from Apple (AAPL) sells about 8 million units in the last three months of 2012. Assume the average selling price for the new models is about $600. (True, people who get the new phone as part of a calling plan pay less than the sticker price, but the sale gets reported to the government for what it would have cost on a stand-alone basis.)

Out of that $600, about $200 is the imported cost, leaving $400 as the value captured in the U.S. Multiply $400 times 8 million and you get a pop of $3.2 billion, which is enough to boost the annualized growth rate of the economy by one-third of a percentage point. Feroli, the bank’s chief U.S. economist, expects the U.S. economy to grow at an annual rate of about 2 percent in the fourth quarter, and says the iPhone will “limit the downside risk” to that projection.“

 

Now, before we continue, a few words about the iPhone 5. It is undoubtedly a marvel of engineering (as a friend and card-carrying Apple fan told us, the aluminum unibody alone is a stunning achievement of modern-day milling methods). However, many observers seemed to agree that apart from a sleeker design combined with lower weight and a somewhat bigger screen than the predecessor model, it offers only incremental improvements.

Its new map application is generally regarded as a letdown compared to the previous Google map app. All in all, the phone allegedly lacks, as one journalist at Reuters put it, a 'wow' factor.  Mind, we are not trying to put the new iPhone down – we merely want to make the point that its release has not exactly made the iPhone 4 (or previous models) completely outdated or unusable.

 


 

The iPhone 5 – will its release add to economic growth?

(Image via Apple.com)

 


 

Another somewhat more famous economist has chimed in on the topic, the man who has forever destroyed what was left of the nimbus attached to the Nobel Prize for Economics by somehow winning it, namely Paul Krugman.

Not surprisingly, Krugman used Feroli's line of argument regarding the iPhone  to fashion a screed designed to convince readers of his column that more government spending is called for. We kid you not.

 

Broken Windows, Carts and Horses….

Krugman's article on the topic in the NYT is entitled „The iPhone Stimulus“. Below are a few excerpts:

 

„So is the new phone as insanely great as Apple says? Hey, I’ll leave stuff like that to David Pogue. What I’m interested in, instead, are suggestions that the unveiling of the iPhone 5 might provide a significant boost to the U.S. economy, adding measurably to economic growth over the next quarter or two.

Do you find this plausible? If so, I have news for you: you are, whether you know it or not, a Keynesian — and you have implicitly accepted the case that the government should spend more, not less, in a depressed economy.“

 

Wow. So if that is what it really means, then some readers may already decide on the spot that Feroli's theory has just been disproved. Seemingly unwittingly, Krugman is shooting his whole intellectual house of cards down in this first paragraph. However, you will be surprised just how deluded this political hack actually is. Bear with us.

 

„The crucial thing to understand here is that these likely short-run benefits from the new phone have almost nothing to do with how good it is — with how much it improves the quality of buyers’ lives or their productivity. Such effects will kick in only over the longer run. Instead, the reason JPMorgan believes that the iPhone 5 will boost the economy right away is simply that it will induce people to spend more.

And to believe that more spending will provide an economic boost, you have to believe — as you should — that demand, not supply, is what’s holding the economy back. We don’t have high unemployment because Americans don’t want to work, and we don’t have high unemployment because workers lack the right skills. Instead, willing and able workers can’t find jobs because employers can’t sell enough to justify hiring them. And the solution is to find some way to increase overall spending so that the nation can get back to work.“

 

The short version of the above paragraph is: we can consume ourselves to prosperity. And if you accept that premise, then you must of course  accept what comes next. After bemoaning the reluctance of businesses and consumers to engage in an orgy of mindless spending (except of course when there's a new i-gadget released), Krugman reminds us of  his solution: the government must jump into the breach.

 

„Why not have the government step in and spend more, say on education and infrastructure, to help the economy through its rough patch? Don’t say that the government can’t add to total spending, or that government spending can’t create jobs. If you believe that the iPhone 5 can give the economy a lift, you’ve already conceded both that the total amount of spending in the economy isn’t a fixed number and that more spending is what we need. And there’s no reason this spending has to be private.“

 

Yes, why not, indeed? We'll explain that in just a moment, but let us first point out what the fundamental error in this whole iPhone/GDP story is.

It is actually a variation on the 'broken window fallacy' – it completely ignores a basic economic concept that we would normally expect every economist to be aware of, namely opportunity cost. We mentioned above that the predecessor of the iPhone 5 remains perfectly serviceable in order to underscore this crucial point.

By buying the iPhone 5, the buyers will no longer be able to buy something else. Every buyer of the new iPhone has a personal scale of valuation that ranks the items he wants to spend his funds on. Obviously, for all those who actually go out to buy the new iPhone, some goods or services that are ranked lower on their value scale will end up not being bought.

Would people cease to buy smart-phones if there were no new iPhone? Of course not – but it is a good bet that at least some users of the predecessor model would not yet junk it. It is highly questionable given the incremental improvement the iPhone 5 represents that they are really gaining much more than the satisfaction that comes from owning what is held to be the latest and greatest gadget (but we are not arguing with that – they want it, and that means they feel it is useful to them). It seems likely though that absent the new iPhone, they would spend the funds on something else instead – so the argument that “total spending” in the economy  will increase is standing on a very flimsy foundation.

Let us assume though that instead of spending the funds on consumption, they were to decide to save instead. Would that be 'bad'? According to Keynesians like Krugman, the answer is yes.

However, we would not even have this discussion if no-one had first produced the iPhone. How do things get produced? To make production possible, one must invest in capital goods. And savings are what funds these investments – they are the sine qua non.

Note here that it is not money created from thin air by Ben Bernanke that can fund production. What funds production is the pool of real funding.  Unless at least some people refrain from consuming their entire economic output, no new additions to the economy's capital structure will be possible. In fact, there must be savings to merely maintain the existing production structure (for a brief overview of capital theory, interested readers might want to check out our previous essay on the production structure that summarizes the essential points).

In other words, when Krugman insists that more spending and consumption will bring the economy back on track, he is putting the cart before the horse. Increased consumption is an effect of economic growth, not the cause of it.

What about his suggestions regarding government spending? Is there not something to be said for 'infrastructure' or 'education' spending'?  Are these not worthy causes?

The problem with this line of argument is that the government is the one organization that is the least able to decide what types of spending are economically sensible. Since the government has no profit motive – it ultimately obtains all its funding by means of coercion – it has no way to engage in proper economic calculation (although the people it hires to implement the spending can up to a point make inferences by observing the private sector).

In other words, once again the main problem is opportunity cost. Say for instance that government decides to finance the building of a bridge. How can it possibly know if the resources expended on building the bridge would not have satisfied more urgent consumer wants if they had been employed differently? The answer is, it cannot possibly know that. Without a profit motive and without economic calculation enabling it to compare input costs to expected income, there simply is no way to know.

This is also the reason why socialism is literally impossible: a socialist community has no market for the means of production, and hence lacks the very basis of economic calculation, as calculation without money prices is obviously not possible. Chaos is the inevitable result, or as Ludwig von Mises pointed out (in 'Calculation in the Socialist Commonwealth'):

 

“Without economic calculation there can be no economy. Hence, in a socialist state wherein the pursuit of economic calculation is impossible, there can be—in our sense of the term–no economy whatsoever. In trivial and secondary matters rational conduct might still be possible, but in general it would be impossible to speak of rational production any more.”

 

Of course we are luckily not living in a command economy. Ours is still a market economy, if a severely hampered one. And yet, the basic problem of being unable to calculate confronts every government agency, regardless of the fact that the problem is even more acute in full-blown command economy.

Therefore, Krugman is wrong when he asserts that “there's no reason this spending has to be private”. There is a very good reason: government spending is extremely likely to waste scarce capital and liable to induce intra-temporal discoordination in the production structure – in other words, its spending will create a configuration of the economy's capital structure that is not in accordance with consumer wants.

Apple's iPhone offering is certainly different in this regard: it obviously does conform to consumer wants. Apple's profits provide ample proof for this assertion – in fact, it is the most profitable company in the world. However, this does not mean that one  can safely ignore opportunity cost when arguing that spending on the new iPhone will add to overall economic growth.

 


 

The performance of Apple's stock price speaks for itself – click for better resolution, chart by StockCharts.

 


 

Krugman Discovers A 'Theory'

However, what really takes the cake is a small posting of Krugman's on the same topic that we discovered incidentally when searching for the article discussed above on Google. Apparently Krugman felt the need to address the topic of obsolescence in more detail and on this occasion lets us in on the fact that he has indeed heard about the 'broken window' before. The post is entitled “Broken Windows and the iPhone 5”.

When seeing the headline, we at first thought that Krugman would attempt to refute that the broken window fallacy appealed to him. Far from it!

 

“The key point is that the optimism about the iPhone’s effects has nothing (or at any rate not much) to do with the presumed quality of the phone, and the ways in which it might make us happier or more productive. Instead, the immediate gains would come from the way the new phone would get people to junk their old phones and replace them.

In other words, if you believe that the iPhone really might give the economy a big boost, you have — whether you realize it or not — bought into a version of the “broken windows” theory, in which destroying some capital can actually be a good thing under depression conditions.”

 

(emphasis added)

Once again, this man has actually won the Nobel Prize for Economics. Perhaps it is time for the prize committee to consider demanding its return. 

So it is the 'Broken Window Theory' now, is it? Actually, as noted above, the concept is known as the 'Broken Window Fallacy'. It was originally formulated in the form of a parable by the great French economist Frederic Bastiat, who explained that in economics, one must not only consider that which is immediately seen, but also that which is not seen.

It is a fallacy to believe that destruction can make us richer –  in fact, Krugman admonishes us to simply deny that opportunity costs exist in what he refers to as 'depression conditions'. The implication of this assertion is that fundamental economic laws magically cease to apply whenever the economy suffers a downturn.

This view is erroneous – economic laws are not dependent on economic conditions. This is akin to arguing that the laws of nature will cease to be operational on Wednesdays. Not surprisingly, Krugman is also a supporter of the view that 'war is good for the economy' – even if it is war against imaginary space aliens, or what we might call Krugman's version of  'Plan 9 From Outer Space'.

 


 

Paul Krugman: getting ready to break some glass to save the economy. In Krugman's capable hands, a fallacy becomes a 'theory'.

 

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Thu, 09/20/2012 - 22:50 | 2816833 Eireann go Brach
Eireann go Brach's picture

Hang the Bastard!

Thu, 09/20/2012 - 22:57 | 2816842 whatsinaname
whatsinaname's picture

I suppose we could have the government buy some iPhones ? That might help GDP growth ?

Thu, 09/20/2012 - 23:12 | 2816859 TwoShortPlanks
TwoShortPlanks's picture

I posted this on ZH last week, that QE3 was used to assure success of the iPhone5...how are sales going???

"This isn't QE3...this is QEi5

Everyone needs to understand as to the REAL REASON why QE3 was launched last night....APPLE!!!!

 

Bernanke's focus was on Market/Public sentiment...yeah?

 

Think about it. If this week's launch of the iPhone5 were to fail and not meet and/or exceed sales targets, THAT  ladies and gentlemen, would potentially be the rudest awakening to the Western World, that we really are in a Global Recession, bigger than anything else! Food & Oil can go up in price, but don't take away our toys.

 

Apple's revenue contributes to what percentage of the US GDP figures, and how much of Apple's revenues are attributable to iPhone sales??? (Rhetorical, I know the stats).

 

iPhone sales affect both GDP numbers and sentiment.

 

iPhone (Apple) has a greater effect on Market/Public sentiment than any other factor.

 

After FaceBook went FacePlant and then FaceEgg, there was no way Apple was going to be allowed to go the way of the Lawn Dart.

 

It's Extend and Pretend via the iPhone5 vehicle…It's that simple.

 

QEi5 lives!"

Thu, 09/20/2012 - 23:14 | 2816874 e-man
e-man's picture

Krugman looks like he's drinking his own kool-aid.

Thu, 09/20/2012 - 23:16 | 2816877 iDealMeat
iDealMeat's picture

Wiki OT:  "The 1989 Hillsborough disaster was a human crush which occurred during the FA Cup semi-final match between Liverpool and Nottingham Forest football clubs on 15 April 1989 at the Hillsborough Stadium in Sheffield, England. The crush resulted in the deaths of 96 people and injuries to 766 others. The disaster remains the worst stadium-related disaster in British history and one of the world's worst football disasters.[1]"

 

"

On the 20th anniversary of the disaster, government minister Andy Burnham called for the police, ambulance, and all other public bodies to release documents which had not been made available to Taylor in 1989.[4] This led to the formation of the Hillsborough Independent Panel, which, in September 2012, concluded that no Liverpool fans were responsible for the deaths, and that attempts had been made by the authorities to conceal what had happened, including the amendment of 164 statements relating to the disaster by the police.[5][6] The report prompted immediate apologies from Prime Minister David Cameron, the Chief Constable of South Yorkshire Police David Crompton, Football Association Chairman David Bernstein and Kelvin MacKenzie, then-editor of The Sun, for their organisations' respective roles.[7]

In September 2012, the Hillsborough Independent Panel concluded that up to 41 of the 96 who had died might have been saved had some failings been addressed.[8] The report revealed "multiple failures" by other emergency services and public bodies which contributed to the death toll. In response to the panel's report, Attorney General for England and Wales, Dominic Grieve MP, confirmed he would consider all the new evidence to evaluate whether the original inquest verdicts of accidental death could be overturned.[9]"

 

source: http://en.wikipedia.org/wiki/Hillsborough_disaster

 

Same as it ever was..

Thu, 09/20/2012 - 23:26 | 2816897 ba dum tiss
ba dum tiss's picture

Paul Krugman is a Buttboy Extraordinaire.

Thu, 09/20/2012 - 23:54 | 2816933 Thomas
Thomas's picture

In case you didn't see this, In my January blog I added to Krugmanology by assigning the unit of $5 trillion the much simpler unit of one Krugman". So now you can simply refer to the bailout costs, not as $25 trillion but rather 5 Krugmans.

Fri, 09/21/2012 - 00:13 | 2816960 camaro68ss
camaro68ss's picture

Brake a window, save the world... Bawhahaha

Fri, 09/21/2012 - 00:22 | 2816967 economics9698
economics9698's picture

Tony Montana: What you lookin' at? You all a bunch of fuckin' assholes. You know why? You don't have the guts to be what you wanna be? You need people like me. You need people like me so you can point your fuckin' fingers and say, "That's the bad guy." So... what that make you? Good? You're not good. You just know how to hide, how to lie. Me, I don't have that problem. Me, I always tell the truth. Even when I lie. So say good night to the bad guy! Come on. The last time you gonna see a bad guy like this again, let me tell you. Come on. Make way for the bad guy. There's a bad guy comin' through! Better get outta his way! 

Fri, 09/21/2012 - 00:46 | 2816985 Manthong
Manthong's picture

Just Ordered on eBay for $81, straight from China, unlocked.
If the damn thing works, it's time for a few more AAPL P490 for next year.

Operation System:  Android 4.0.3
CPU:  Allwinner Tech BOXCHIP A13 Cortex-A8, 1.2GHz
RAM:  512M DDR2
Flash Memory:  4GB (system will use more than 1GB)
Extend Memory:  Support Micro SD (TF) card (max 32GB)
G-sensor:  4-dimensional G-sensor
Screen Size:  7 Inch
Screen Pixels:  800 * 480
Screen type:  5-point capacitive Touch Screen
WIFI:  Built-in IEEE 802.11b/g/n WiFi
3G:  Support external 3G:E220,E230,E180,E1550,E1630,E1750,E1782,E1820
Audio format:  MP3?WMA?APE?FLAC?OGG?WAV
Video format:  AVI,MKV(XVID/px/H.264),MOV,TS,M2TS,RM/RMVB,FLV,3GP,MPEG,DAT,MP4
Software install:  Download from market or setup from TF card
Camera:  2.0M front camera
Battery:  Lithium-ion 2600mAH (2 – 3 working time)
I/O Port:  1 * USB Port
:  1 * DV-5V in
:  1 * 3.5mm Earphone Jack
:  1 * TF card slot
Buttons:  1 * Power Key
:  1 * Volume Key
Size:  183 * 122 * 8mm
Weight:  271g
Power Input:  AC 100-240V 50/60Hz
Power Output:  5V,2A
Package:  1 * Android Tablet
:  1 * Power Adapter
:  1 * User Manual

Fri, 09/21/2012 - 01:53 | 2817031 fourchan
fourchan's picture

so apple pays the red chinese 200 per phone to make them then they make 600 on em

so apple pockets that. um what the fuck does any of this have to do with the united states or its people?

Fri, 09/21/2012 - 02:58 | 2817060 Manthong
Manthong's picture

It's all about the technology transfer.

Western technology goes in.. then it’s duplicated or emulated.. and reproduced like popcorn.

They get the jobs and the technology and we get to watch our competitive advantage slip as the technology gets rapidly commoditized.

They see improvement and we see deterioration.

With over 500,000 new engineers graduating every year, centers of innovation there are likely to provide a substantial challenge to Western leadership.

If that little tablet I ordered does it’s job, even if it lasts only a year (it’s only 80 bucks), then it, and similar products can be game changers which correspondingly will do no good for Apple or our GDP,  nominal or otherwise.

Fri, 09/21/2012 - 06:42 | 2817152 Bobbyrib
Bobbyrib's picture

It's what corporate America gets for betraying their country.

Fri, 09/21/2012 - 07:48 | 2817222 GetZeeGold
GetZeeGold's picture

 

 

 

Dude....if you can't hold your Koolaid.....don't shoot your mouth off and show the world.

 

Fri, 09/21/2012 - 01:29 | 2817020 dubbleoj
dubbleoj's picture

 

Since the government has no profit motive outside of individual bribery for and no-bid contracts – it ultimately obtains all its funding by means of coercion – it has no way to engage in proper economic calculation.

 

FIFY

Fri, 09/21/2012 - 07:51 | 2817226 GetZeeGold
GetZeeGold's picture

 

 

But they'll still try....count on it.

 

Fri, 09/21/2012 - 01:01 | 2817005 Mine Is Bigger
Mine Is Bigger's picture

Hence the violent protest in China.

Now, it all makes sense.  Thank you!

Thu, 09/20/2012 - 23:51 | 2816920 economics9698
economics9698's picture

Krugman is a waste of ink.  He is the poster boy of failure.

Fri, 09/21/2012 - 01:13 | 2817010 Element
Element's picture

Yes, all true, but he does drink his own urine from a wine glass.

Fri, 09/21/2012 - 06:01 | 2817081 Sofa King
Sofa King's picture

...and he can't act. Did anyone else see him in "Get him to the Greek". Funny stuff but he sucked ass. I pose a question. If the iPhone will actually lift the US GDP number by that much. What will it do for China's GDP, being that they actually manufacture and export the toy?

Fri, 09/21/2012 - 10:11 | 2817676 Hugh_Jorgan
Hugh_Jorgan's picture

Indeed, the poster boy for the cultural insanity that we are all now enjoying.

 

Krugman is a sophist, nothing more. He must be ignored in reference to anything related to actual reality.

Thu, 09/20/2012 - 23:52 | 2816925 Thomas
Thomas's picture

None of this is as bad as his "space alien theory" of stimulus.

Fri, 09/21/2012 - 00:12 | 2816958 gwar5
gwar5's picture

I was thinking along the same lines. Except my theory is that Paul is about a Helix shy of being human and is trying to make money playing both sides in a false flag.

 

We Gwarians just know these things: www.youtube.com/watch?v=wTzEZLbcCSo

 

 

Fri, 09/21/2012 - 00:00 | 2816939 PhattyBuoy
PhattyBuoy's picture

Krugman's opportunity cost dilemma:
purchase an Iphone5 or the latest Ibuttplug?

Fri, 09/21/2012 - 11:57 | 2818176 theprofromdover
theprofromdover's picture

The tradition in those days for an all ticket soccer match (FA Cup semi-final) played on a neutral ground, was for fans of well-supported northern city teams to turn up en-mass without tickets, and storm the turnstiles where they could best gain entry. Generally these fans had been drinking for most of the day. Liverpool fans had a very bad reputation for being drunk, ticketless, and self-righteous, in their thousands.

It is disingenuous to say that Liverpool fans were not the root cause of the deaths. If only ticket-holders had gone to the match, then presumably no-one would have been crushed. If treble the number of fans appeared, then people would likely be injured.

This does not excuse the manipulation of witness statements by police, or cover-ups of emergency services shortcomings, but the citizens of Liverpool might still feel they share some of the blame.

Fri, 09/21/2012 - 00:47 | 2816986 Overfed
Overfed's picture

Unfortunately cyanide-free.

Fri, 09/21/2012 - 08:13 | 2817281 smlbizman
smlbizman's picture

i bet he smells his own farts......like the smug people on south park

Fri, 09/21/2012 - 06:17 | 2817137 Muscletonian
Muscletonian's picture

Or put it the other way around, you think it was a coincidence that i5 was released this date? The FED and Apple management had this panned out nicely...

Fri, 09/21/2012 - 00:47 | 2816987 dexter bland
dexter bland's picture

Perhaps the government could buy a struggling phone company (e.g. Nokia) and start making their own phones. We could get Los Alamos etc on to designing smaller, lighter phones as a new Manhattan Project. If we could manufacture 10 new models each year and get people to replace their old ones each time, GDP would be up around 5%.

 

Thu, 09/20/2012 - 23:23 | 2816889 ACP
ACP's picture

Nah, keep him alive in a cage as a case study for pseudo-intellectual insanity.

Thu, 09/20/2012 - 23:29 | 2816904 savagegoose
savagegoose's picture

think of the boost if they actually built them in ussa to.

Thu, 09/20/2012 - 23:54 | 2816930 SilverIsKing
SilverIsKing's picture

How much did the iPhone 4S contribute to 2011 GDP?

From a YoY GDP growth standpoint, the iPhone 5 may not have much of an impact at all.

Fri, 09/21/2012 - 00:09 | 2816955 dbomb12
dbomb12's picture

Sure it will, In China

Fri, 09/21/2012 - 00:35 | 2816978 williambanzai7
williambanzai7's picture

MIND OF A KEYNESIAN

Fri, 09/21/2012 - 00:51 | 2816992 Overfed
Overfed's picture

So, if one were to call himself a Keynesian, does that mean he is also a pederast? Shouldn't Keynes' pedophilia be a sufficient reason to dismiss his economic theories? Ron Paul was (falsely, IMO) labelled a racist, and thus his ideas were considered looney and half baked, but Keynes was an admitted pedophile and his ideas are beloved throughout the Progessive world. I don't get it.

Fri, 09/21/2012 - 07:01 | 2817163 Moe Howard
Moe Howard's picture

YOU demand rationality in an insane world. YOU won't get it.

 Remember the new American paradigm:

UP is DOWN

BLACK is WHITE

HATE is LOVE

WAR is PEACE

 

 

Fri, 09/21/2012 - 10:24 | 2817723 Hugh_Jorgan
Hugh_Jorgan's picture

"Woe to those who call evil good and good evil, who put darkness for light and light for darkness, who put bitter for sweet and sweet for bitter! Woe to those who are wise in their own eyes, and shrewd in their own sight! Woe to those who are heroes at drinking wine, and valiant men in mixing strong drink, who acquit the guilty for a bribe, and deprive the innocent of his right! Therefore, as the tongue of fire devours the stubble, and as dry grass sinks down in the flame, so their root will be as rottenness, and their blossom go up like dust; for they have rejected the Torah of YHVH, and have despised the word of the Holy One of Israel."

~YHVH via Isaiah Ben Amoz

Thu, 09/20/2012 - 22:53 | 2816836 palmereldritch
palmereldritch's picture

iFed  iDrank  iInflated

Thu, 09/20/2012 - 23:05 | 2816850 vast-dom
vast-dom's picture

iDouchKrugBag

 

Between this smirking fuckface's Nobel and that sociopath of a drone-killing-machine Prez, I think it's high-time to consider the Nobel useless until further notice.

 

"We don’t have high unemployment because Americans don’t want to work, and we don’t have high unemployment because workers lack the right skills." Hey fuckface with the smirk American's don't assemble that fucking iGadget, the Chinese do! Hey fuckface it's not about the right skills! It's about the exporting jobs due to COST SAVINGS ie dirt cheap foriegn labor, wholly independant of Agregate D, more at in spite of it! Keynes that fuckface! 

 

Fri, 09/21/2012 - 00:11 | 2816957 dbomb12
dbomb12's picture

I, concur

Fri, 09/21/2012 - 04:36 | 2817089 Acet
Acet's picture

Clearly the economic crisis is all because Americans don't want to work (for 3rd world salaries) and lack the right skills (to be able to survive on $10 a month).

/SARC

Thu, 09/20/2012 - 23:41 | 2816914 Anusocracy
Anusocracy's picture

"we can consume ourselves to prosperity." 

That was basically the idea of Krugman's high time preference, hunter-gatherer predecessors: they consumed what nature gave for survival.

The cost of producing wasn't part of their, or his, thinking.

Thu, 09/20/2012 - 22:55 | 2816841 Theta_Burn
Theta_Burn's picture

The stand up comic of economics

That glazed look should tell you all you need to know.

 

Thu, 09/20/2012 - 23:57 | 2816936 Schmuck Raker
Schmuck Raker's picture

"iKrug, therefor iSuck."

Fri, 09/21/2012 - 05:48 | 2817124 Winston Churchill
Winston Churchill's picture

The joke is on us however.

Thu, 09/20/2012 - 22:59 | 2816846 cxl9
cxl9's picture

1930s Depression: hungry masses queue up in long lines at soup kitchens for something to eat.

2010s Depression: SNAP cards replace soup lines. Frenzied consumers queue up in long lines for the latest electronic fashion accessory.

http://in.reuters.com/article/2012/09/21/apple-iphone-idINL4E8KK68G20120921

Thu, 09/20/2012 - 23:08 | 2816863 adr
adr's picture

When the iPhone 4 came out there were a few people camping out at my local Best Buy. Same thing for the iPad and iPad2.

THE MOST IMPORTANT PHONE EVAR!!!!!

Not a single person and it's 70 degrees tonight. There wasn't even anyone asking about it when I was looking at phones. Walmart, Target, and everywere else was exactly the same. The local AT&T and Sprint stores had hand written pieces of paper taped to the door saying "iPhone5 coming tomorrow". Wow, what hype.

Fri, 09/21/2012 - 00:15 | 2816961 dbomb12
dbomb12's picture

And rack up their credit cards buying the latest Iphones

Nobody had credit cards and all these other handouts in the 1930,s thats why this bullshit continues to go on. But when the nobody buys our debt and the dollar collapses because of the chairSATAN then people are going to really feel the pain

Thu, 09/20/2012 - 23:02 | 2816851 adr
adr's picture

Far more people use a non Apple phone. *gasp, I know but it's true. Analysts are claiming Apple can reach 70% of the smartphone market, but no more. Up from the 40% they hold now.

Not a chance in hell. The iPhone isn't a good enough product to get to that percentage. The competition is too fierce, and sub $100 Android phones are available on a number of prepaid plans. $70 for an Andriod phone on a $45 a month unlimited plan sure beats $299 for the decent iPhone and at least $85 a month for a 1GB phone plan.

As much as Krugman doesn't want to admit, economics does matter. A nice looking phone that just about caught the competition from last year, isn't going to take the market by storm. Yes every card carrying Jobs sucker reviewing the iPhone will say it's the best phone ever. Anyone actually objective will see it is just a mild upgrade.

Thu, 09/20/2012 - 23:03 | 2816853 Debtonation
Debtonation's picture

I bet Krugman wants the government to force people to buy the iPhone so the economy can recover.  Go figure.

Thu, 09/20/2012 - 23:18 | 2816882 HoofHearted
HoofHearted's picture

I can get the economy to recover. Put Krugman in a dunk tank, and charge ZHers $1 to throw a ball at him. No, not at the bar to drop him in the water, but to be able to throw a baseball at the iPieceofShit himself. OK, $5 apiece. Where is the equilibrum price???

Fri, 09/21/2012 - 06:56 | 2817159 superflyguy
superflyguy's picture

i'd pay a $100 if he had a cement slab chained to his leg

would be fun seeing him drown for a few seconds before they save him and put him up for the next pitcher...

Thu, 09/20/2012 - 23:04 | 2816855 A Lunatic
A Lunatic's picture

Made in China, bitches........................

Thu, 09/20/2012 - 23:06 | 2816861 CPL
CPL's picture

Silver is about to kick down the door on 35 again.

Thu, 09/20/2012 - 23:23 | 2816888 JuicedGamma
JuicedGamma's picture

If you're a technician the 50 day has just crossed the 200 day EMA for both silver and gold.  Last time was beginning of a huge rally.

 

http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e200%2Ce50&a=&c=&s=slv...

http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e200%2Ce50&a=&c=&s=gld...

Fri, 09/21/2012 - 00:01 | 2816940 Manipuflation
Manipuflation's picture

Meh.  I've been in PM's since 1999.  Technicals are pretty much worthless in PMs.  I was a buyer a few weeks back but I am not impressed so far.  No reason to sell though and it is likely a time to buy in smaller quantities.

So if you are a technician, or anyone else here is, what do you all think of Rhodium?  That one scares me and I've stayed out.  Talk about no volume.

Fri, 09/21/2012 - 00:57 | 2817000 Overfed
Overfed's picture

Rhodium is a high-tech metal, and that is it's only value, same story with all of the platinum group metals. I suppose it depends on how long you want to hold it, the coming dark-ages may be very long lasting.

Silver and gold can be refined and worked with relatively low technology methods, and that is one of the reasons they have been valuable for thousands of years. Talkin' physical here.

Fri, 09/21/2012 - 07:29 | 2817202 Moe Howard
Moe Howard's picture

Even Satan isn't interested in Rodium.

Thu, 09/20/2012 - 23:41 | 2816913 Manipuflation
Manipuflation's picture

CPL, you seem to watch the markets even more than I do and it is late.(MN here, just south of you)  I did well on Asian overnights in 2008.  I'm not seeing that pattern emerge this time.

Thu, 09/20/2012 - 23:09 | 2816866 kevinearick
kevinearick's picture

So, a temporary bridge is your path to the next temporary bridge, which then ignites the black hole behind you. the savants thought they were reigniting the same economy with the internet, because, sooner or latet, the politicians at evry level start believing their own lies in the positive media feedback loop. the civil marriage blob wins, until it doesn't. each time, they blew up another subsystem motor, with increasing intrrnet transparency pressure and decreasing places to hide. now, as you were warned with more than sufficient notice, they have hooked up the main, which is already pulling too many amps. don't look back and gloat, or you will go up in flames too. don't hurry and don't delay; just move forward.

Thu, 09/20/2012 - 23:09 | 2816867 BandGap
BandGap's picture

Step back and think about this. It's so stupid as to be laughable....except no one is laughing.

This is truly sad.

People better get moving on being prepared.

Thu, 09/20/2012 - 23:12 | 2816872 GeorgeHayduke
GeorgeHayduke's picture

I wonder if the iPhone 5 will make a huge face plant like Facebook stock has done? I love how these time wasters are seen as the saviors of the economy.

The fact that there is any semblance of a serious discussion about the possibility of a cell phone pulling this corrupt Ponzi economy out of the ditch is evidence enough of an unavoidable collapse. Historians will truly wonder how we could have been so stupid as a culture and likely be thankful that we collapsed before destroying the entire planet (that is, if we haven't already).

Thu, 09/20/2012 - 23:17 | 2816878 JuicedGamma
JuicedGamma's picture

 

Krugman has our attention for being one of most irritating opinion writers ever.  He's so politically compromised it's impossible to take anything he says seriously.  The really unfortunate and scary thing is that he is Bernanke's counterpart in many ways, looks, mannerisms, speech patterns and academic backgrounds.

We are at the mercy of Mr Bernanke let us hope Mr Krugman is never more than a political commentator.  He most certainly is NOT an economist despite the gnomes in Stockholm bestowing  their now worthless prize on him.

 

Thu, 09/20/2012 - 23:17 | 2816880 Yardfarmer
Yardfarmer's picture

gadgetocracy.

Thu, 09/20/2012 - 23:19 | 2816883 GrinandBearit
GrinandBearit's picture

No.  A cell phone made in China will not save the US economy.

Krugman has a far-away look in his eyes... probably mind controlled. 

Thu, 09/20/2012 - 23:22 | 2816886 Pejorative Requiem
Pejorative Requiem's picture

Paul Krugman is what the article claims..... a political hack. Who really respects Nobel Prizes now? Maybe respect the money, that's about it though.

Of course tha main issue here is how "stimulus" is described, Krugman trying to create the illusion that free market successes are the same as printing money. And in his attempt he reveals his willingness - his NEED - to deceive rather than enlighten those who don't comprehend. He's the worst type of the self infatuated elites in the academia.

Thu, 09/20/2012 - 23:21 | 2816887 Let The Wurlitz...
Let The Wurlitzer Play's picture

The reality is that Krugman is not intelligent enough to understand economics and markets.

 

Thu, 09/20/2012 - 23:33 | 2816908 jomama
jomama's picture

luckily for him, 95%+ americans don't, either.

Thu, 09/20/2012 - 23:35 | 2816909 Totentänzerlied
Totentänzerlied's picture

Krugman is intelligent to know to write EXACTLY what the east coast liberal establishment and it's hangers-on (NYTimes readership) wants to hear. He knows EXACTLY what he's doing and he's very good at it - lying to idiots (idiots with money).

Fri, 09/21/2012 - 06:05 | 2817135 ParkAveFlasher
ParkAveFlasher's picture

This is what happens when you seek to lower the mean testosterone of society.  Micro-dog-petting milk-drinking beards like this pass for hard thinkers.  Abnormal psychology is a requisite study in most colleges.  Engineering is not.  We are totally off track.

Thu, 09/20/2012 - 23:24 | 2816891 Diesel Seven
Diesel Seven's picture

Here's a joke for you: What do you call 3 economists at the bottom of the ocean?

Answer: A good start! Hardy-har-har. Seriously, economists are all social science coupled with DOGma. What we need are macro-accountants to tell us how to balance our national income statements and balance sheets. However, iPhones are modern marvels--I can read ZH and make this silly comment on my iPhone while sitting on the john! I can just smell the GDP growth.

Thu, 09/20/2012 - 23:26 | 2816895 Poor Grogman
Poor Grogman's picture

This guy would not survive in a free market environment, he is battling for his very survival.

If Keynesianism goes,, Krugman goes with it.

When you sit on top of the house of cards, it is only natural to be yelling at people to keep away...

Fri, 09/21/2012 - 07:03 | 2817164 machineh
machineh's picture

'When the New York Times-Titanic goes, Kurgman goes with it.'

And so do millions of parakeets, deprived of cage liners to take a dump on.

Fri, 09/21/2012 - 07:24 | 2817192 ParkAveFlasher
ParkAveFlasher's picture

Poor gerbils, with nothing to chew on!

+1

Thu, 09/20/2012 - 23:36 | 2816910 zebra
zebra's picture

Appl and phone companies will likely hide the three billion dollars outside USA.

Fri, 09/21/2012 - 00:46 | 2816983 Manipuflation
Manipuflation's picture

Where?

Fri, 09/21/2012 - 01:37 | 2817022 mkhs
mkhs's picture

If you knew, it wouldn't be hidden.

Thu, 09/20/2012 - 23:53 | 2816929 gwar5
gwar5's picture

A week without Krugman is like a week without your toilet getting stopped up.

Fri, 09/21/2012 - 01:51 | 2816938 Cult_of_Reason
Cult_of_Reason's picture

Paul Krugman is an idiot. No ifs, ands, or buts.

And the entire Fed, except Lacker and Fisher, thinks like Krugman. The future of this country is decided by idiots. This is just surreal. 

And it looks like Obama will be re-elected, and the liberal progressive Keynesians will get four more years.

http://i48.tinypic.com/1grehx.jpg

 

The Coming 'Obama Recession' Of 2013 

http://www.forbes.com/sites/merrillmatthews/2012/09/21/the-coming-obama-recession-of-2013/

Recession, more taxes no matter who wins, Obama or Romney, stock market loses 20%

http://www.marketwatch.com/story/obama-or-romney-stock-market-loses-20-by-2016-2012-09-21

Fri, 09/21/2012 - 00:07 | 2816950 urbanelf
urbanelf's picture

Goddamn, this shit is depressing.

Fri, 09/21/2012 - 00:09 | 2816954 elementary
elementary's picture

Krugman is the poster child for birth control, and if that fails, abortion.

Fri, 09/21/2012 - 11:13 | 2817988 NidStyles
NidStyles's picture

Umm, how late term can we go on this one?

Fri, 09/21/2012 - 00:10 | 2816956 Heyoka Bianco
Heyoka Bianco's picture

Burn Down Murica, For a Brighter Future For Muricans!

 

Does Apple have an arson app?

Fri, 09/21/2012 - 07:06 | 2817167 machineh
machineh's picture

Great idea! What good is an iPhone without a built-in butane lighter?

Fri, 09/21/2012 - 00:15 | 2816962 New American Re...
New American Revolution's picture

You can take a shit or suck it right back up your ass, but if you do, you're a Keynesian, right Paul?

Fri, 09/21/2012 - 00:21 | 2816965 element115
element115's picture

Four years ago I had no idea who Paul Krugman was. I had no idea that someone so stupid could be so "important." And, I am not a violent person, but that smug fucking look of his makes me want to smash him in the face.

 

I keep money for bail in the coat closet, in my old gym bag.

Fri, 09/21/2012 - 00:24 | 2816969 Jendrzejczyk
Jendrzejczyk's picture

For all you naysayers that complain Obama isn't doing enough to stimulate the economy:

Today I witnessed with my own eyes two presidential helicopters, escorted by two more unmarked helicopters, which were preceeded by two more helicopters making an initial flyover, land at a local baseball stadium in Virginia. This was just a practice excercise for the actual event tomorrow.

What did that little practice run for a campaign stop cost every taxpayer?

Neither asshat party gives a fuck about us hard working people.

Guess what, day off with no pay tomorrow for a few of us that still have a job, because someone needs to get reelected.

To both parties, get your heads out of your asses and see what you are doing to us!!!!!!!!!!!!!

Yes, I've got an attitude and I don't need political platitudes.

Do something right for once in your lives you FUCKERS!

we now return you to your regularly scheduled program.

 

 

Fri, 09/21/2012 - 00:52 | 2816995 Manipuflation
Manipuflation's picture

Nope, now STFU and get back to work so you can keep contributing to your 401K Muppet plan.

Fri, 09/21/2012 - 01:04 | 2817006 Jendrzejczyk
Jendrzejczyk's picture

Shakin' the bush, Boss. Shakin' the bush.

http://www.youtube.com/watch?v=G7QwTTn3FIk

Fri, 09/21/2012 - 00:37 | 2816979 chump666
chump666's picture

a power sucking iphone (good for under a day of use) = adds to energy inflation. stimulus my a-hole.

anyways wall street will sell this to suckers on open.  reviews of 5 are coming in...'nothing new', 'maps are junk', 'slightly complex to use' etc etc etc.

tedious.

 

Fri, 09/21/2012 - 00:56 | 2816999 yogibear
yogibear's picture

Krugman must be related to Professor Irwin Corey

http://www.youtube.com/watch?v=MxtN0xxzfsw

 

Fri, 09/21/2012 - 00:59 | 2817003 HalinCA
HalinCA's picture

Look at his eyes  .... Krugman is insane and his "The iPhone Stimulus" article proves it.  He has the penetrating gaze of a lunatic ... he is unhinged.

Fri, 09/21/2012 - 05:05 | 2817099 Wakanda
Wakanda's picture

iKrug drank the iDrug

He's too far gone to be reached

We'll muddle along

'Till something goes wrong

And the ivory towers are breached

Fri, 09/21/2012 - 01:08 | 2817008 LarryDavis
LarryDavis's picture

What's a good phone to buy that doesn't support evil? I have an Iphone and a Blackberry and HATE both of them. What are my fucking options? Can someone start a boutique cell phone company? Should I buy something second hand so the money doesnt go directly to board of directors? Please advise.

Fri, 09/21/2012 - 07:15 | 2817180 Moe Howard
Moe Howard's picture

I got a new/old stock unlocked Razr v3 straight from Hong Kong with a nice "lemans sunset" paint job for $31 shipped. Slipped in my sim and good to go. Goes in any pocket without any weight, nothing hanging from my belt. Sorry, 20 years in the Infantry, I like not having things hanging off me for a change.

 

P.S. I have a computer, both at work and at home. Don't need a "smart phone". I watch movies on a 56 inch screen, not a 4 inch. But that's just me.

Fri, 09/21/2012 - 01:14 | 2817011 Peter K
Peter K's picture

Krugmans economics is just religion disguised as a social science. :)

Fri, 09/21/2012 - 01:37 | 2817023 icanhasbailout
icanhasbailout's picture

Save the world - break an iPhone

Fri, 09/21/2012 - 02:00 | 2817038 Bunga Bunga
Bunga Bunga's picture

I recommend Mr. Krugman to open an ebay account just to learn where his "destroyed" capital ends.

Fri, 09/21/2012 - 02:44 | 2817049 Floodmaster
Floodmaster's picture

ExoPC is a tablet developed by one guy alone in his basement, Nexus 7 went from zero to working product in four months.ExoPC is like Dell, a components assembler, Apple is like Chanel, Dior, Luis Vuitton, a place-orders-collect-profit cie.

Fri, 09/21/2012 - 03:19 | 2817070 jmcadg
jmcadg's picture

iphone 5 will be an epic fail ... as krugman is.

Fri, 09/21/2012 - 03:21 | 2817073 poldark
poldark's picture

I can't believe so many pillocks are going out and buying an iPhone 5 when there will be an iPhone 6 for Christmas.

Fri, 09/21/2012 - 03:24 | 2817075 lolmao500
lolmao500's picture

HAPPENED 3 MINUTES AGO...

(URGENT) S. Korean Navy fires warning shot against N. Korean fishing boats

UH OH!

Fri, 09/21/2012 - 03:32 | 2817076 poldark
poldark's picture

The government has been printing money for four years, how long is this 'rough patch' supposed to last?

Fri, 09/21/2012 - 05:19 | 2817109 Prairie Dog
Prairie Dog's picture

What an amazingly deranged article and as for the comments... what a bunch of freaks and cranks. Not coming here again.

 

Fri, 09/21/2012 - 06:25 | 2817139 Poor Grogman
Poor Grogman's picture

Good riddance..

Fri, 09/21/2012 - 06:29 | 2817142 nmewn
nmewn's picture

Seconded.

Fri, 09/21/2012 - 07:09 | 2817175 Moe Howard
Moe Howard's picture

I think he was Krugman.

Fri, 09/21/2012 - 07:10 | 2817176 Moe Howard
Moe Howard's picture

Or Krugman's groupie.

Fri, 09/21/2012 - 09:33 | 2817468 bentaxle
bentaxle's picture

Not coming here again?

That's a shame. This site could do with a few more drama queens. <sarc off>

Fri, 09/21/2012 - 05:31 | 2817117 Darth Rayne
Darth Rayne's picture

Until Paul Krugman goes on CNN explains that he was wrong and that the fractional reserve system is fraud and government deficit spending is counterfeiting, then says sorry just before blowing his brains out. Then progress will be slow.

 

Keep at it.

Fri, 09/21/2012 - 05:45 | 2817123 Zola
Zola's picture

Paul Krugman = the looters' creed - Ayn Rand was a visionnary

Fri, 09/21/2012 - 06:07 | 2817136 falak pema
falak pema's picture

bonnie and clyde! Of economic ideology. Pseudo science like Bernanke Houdini stuff.

Fri, 09/21/2012 - 05:49 | 2817125 crouton
crouton's picture

krugman is a narcissist. stop paying him attention and he will get depressed and kill himself.

Fri, 09/21/2012 - 05:53 | 2817130 Peter Pan
Peter Pan's picture

If Krugman seriously believes the shit coming out of his mouth, then he seriously needs time in a straight jacket in an institution not even marked on the map.

Fri, 09/21/2012 - 05:56 | 2817132 Rip van Wrinkle
Rip van Wrinkle's picture

Just look at Krugman's eyes. It tells you everything you need to know.

 

Watch 'One Flew Over the Cuckoo's Nest' for a guide.

Fri, 09/21/2012 - 06:39 | 2817149 Bobbyrib
Bobbyrib's picture

Krugman knows what he is talking about.

Posted on my IPhone 4S while waiting on line for the release of the IPhone 5...just kidding, the whole post was making fun of the jackasses waiting online in NY this morning.

 

Fri, 09/21/2012 - 07:05 | 2817168 Go Tribe
Go Tribe's picture

I love Apple and its products, but if we're at the point where we are relying on the iPhone to lift our economy, then it is time to SHORT THE F'N MARKET.

Fri, 09/21/2012 - 07:06 | 2817169 Heroic Couplet
Heroic Couplet's picture

The Bank of America bankers who got laid off is just the start. The finance sector should shrink its employment down to 1950s levels. If Charlotte has an unemployment problem, then the bankers can use Richard Burr's Charlotte office to conduct their job search. Richard Burr and Elizabeth Dole voted to make student loan debt exempt from bankruptcy at a time when North Carolina was losing jobs. So good riddance to the finance sector.

Fri, 09/21/2012 - 07:07 | 2817171 Moe Howard
Moe Howard's picture

There is no Nobel Prize for Economics. Nobel did not set up such an award. Why do people keep saying Krugman has one when there is not one?

He has a made up award "in honor of" Nobel. WTF?

Not that the Nobel Prize in anything is meaningful. Shoot, look at who gets them: Arafat, Gore, Obama. Should I go on?

 

So Krugman got a award "in honor of" a award that is meaningless. I take that to mean he got something that is less than meaningless.

Fri, 09/21/2012 - 08:39 | 2817329 crouton
crouton's picture

**CENTRAL BANK** of sweden's Prize in Economic Sciences in Memory of Alfred Nobel

 

 

 

 

Fri, 09/21/2012 - 07:07 | 2817173 buzzsaw99
buzzsaw99's picture

the joke is not krugman, the joke is our supposedly "free market". the maggots deserve everything krugman can dish out and more because they are the real fascist scumbag insider ripoff scam assholes. socialism for the billionaires and bankers hardcore crapitalism for the rest? I don't think so. Let it all burn down.

Fri, 09/21/2012 - 07:17 | 2817183 Papasmurf
Papasmurf's picture

This is a perfect example of why our kids accumulate student loans, but can't learn a marketable skill in their university. 

Fri, 09/21/2012 - 07:21 | 2817190 Laretes
Laretes's picture

He does go on to say in the last paragraph of his article that the money should better be spent on something else. It's alright to bash Krugman, he does have the eyes of a lunatic no doubt, but play the game fair or people will not take you seriously.

Fri, 09/21/2012 - 07:33 | 2817207 10044
10044's picture

Everytime I hear "krugman" I get an urge to go to the bathroom.

Fri, 09/21/2012 - 08:02 | 2817248 DevilsPrinciple
DevilsPrinciple's picture

I was in an Apple store for the first time yesterday. Talk about stupid people getting ass raped for technology. For help they hired, washed up hippies ( in clean jeans and t-shirts this time), walking around with blue tooths and wires hanging from their ears. It's like these people had developed no persona, so they assumed the personna of a dead man. Steve Jobs.

 

Fri, 09/21/2012 - 08:07 | 2817266 MacAttack2
MacAttack2's picture

Paul Krugman is a quack!  

Fri, 09/21/2012 - 08:13 | 2817282 jay28elle
jay28elle's picture

I think Krugman is hoping to be entombed (ala Lenin's Tomb) one day right next to Obama and Jobs.  A giant tribute to those who saved the world, bodies on display for all to swoon and faint over.  

Almost forgot, Ben will be in there too.

Fri, 09/21/2012 - 08:35 | 2817325 MoneyShaman
MoneyShaman's picture

Paul Krugman advocating broken window policies is not new. This is what this guy is about. He talks about the "animal spirits", which is really just Keynesian speak for psychology of profit motive, and illusory perception. The quality is the iPhone is not important to Mr. Krugman at all, or utility of the good as long as man spends his money, all things are good, don't matter what he spends it on. Krugman has a overly simplistic view, and methodology to economics. Like his grandpa Keynes, they focus on select magnitudes, & make aggregates out of them. It's simple in focus, but life is more complicated than that unfortunately. Everytime Krugman speaks out, I just have to chuckle at the naive dumbed down theories of his.

Fri, 09/21/2012 - 09:25 | 2817443 Remington IV
Remington IV's picture

Krugman is  a chimp

Fri, 09/21/2012 - 09:26 | 2817447 Shizzmoney
Shizzmoney's picture

The country is run by Walll Street champagne fascists, and those fascists are enabled by Ivy League champagne socialists (like Krugman).

The nation is truely bi-polar. 

Fri, 09/21/2012 - 10:27 | 2817761 pufferfish
pufferfish's picture

I had to stop reading here:

"This is also the reason why socialism is literally impossible: a socialist community has no market for the means of production, and hence lacks the very basis of economic calculation, as calculation without money prices is obviously not possible."

 

So, by this measure: the creation of infrastructure by socialist governments will always be marginalised.

As a posed to an infrastructure created by a capitalist government?

Cronyism is clearly overlooked here. A statement that exists in a vacuum and without reference to the social aspects cases of skewed spending based on nepotism. No underlying explanation as to the basics of human need. Profit can always be made from the most basic needs of people. 

Build a bridge to the market from the farm.

It doesn't need an economist to work that out.

Fri, 09/21/2012 - 11:06 | 2817958 NidStyles
NidStyles's picture

Governments can not be Capitalist. The rest of your post just isn't worth wasting time on, everyone else so inclined can see through it easily, but not everyone will, so maybe one of those that can will point out the fallacy in your assumption.

Fri, 09/21/2012 - 12:10 | 2818243 pufferfish
pufferfish's picture

So, whats the point of the inital statement? Its a misnomer. A democracy would denote a free market, thus ,capitalism.

Please, define your point.

Fri, 09/21/2012 - 11:04 | 2817937 NidStyles
NidStyles's picture

I would like to actually get a fund together and reward it to the ballsy bastard that hits this asshat with a bus. Not saying that I want to pay someone to do it, but if someone felt so inclined to do so, I would think us rewarding them is certainly due respects.

Fri, 09/21/2012 - 11:14 | 2817998 Walt D.
Walt D.'s picture

Inflation is going down!

You can get the new IPhone 5 for the same price as an old Iphone 4S last year. Since it has more features for the same price, this means prices are going down.

(Forget rising gas prices, rising food prices, rising rents,.... don't belive your lying eyes, prices are going down!)

Fri, 09/21/2012 - 11:34 | 2818072 Montezuma
Montezuma's picture

Yeah yeah Iphone 5.. Jesus is everybody in Apples payroll? Bloomberg US is Apples marketing machine, at least the Brits have the balls to call a shit what it is.. a shit you dont need. Only reason it came out was that Apple wants to cash in with idiots. Its the Iphone 6 thats expected to have something "revolutionary" (probably slim bendable thinggy if they figure out how to keep the phone alive without being constantly connected).
Iphone 5 sales are going to eventually fail on world scale, Americans would buy scrotum if its made by Apple and comes with rounded edges (Jury trials my arse, 1bil? gtfo again its for European courts to show real verdicts).

Now what comes to Krugman and his wild wild theories. Well he is actually right most of time. Problem is that politicians misinterpret Keynes intentionally. Keynes never meant to have a mixed government welfare shit for companies (and people), his main idea was that when in recession when companies arent spending. Government has to step in and spend, usually in infrastructure. What politician forget that when things are good you need to SAVE and PAY your bills.

But to say if you buy Iphone 5 you cant spend money on other things? Oh so you yanks havent heard of people SAVING money to buy Iphone5? Apples product are one of those "must have" thanks to the marketing machine you are guilty as well. So people who should be saving money are buying Iphones too, most people who have enough to buy Iphone dont really need to worry about not be able to buy some other shit.

If you want to criticize Krugman for REAL stuff would be his usage of household income which he overrates and over generalizes.

Ps. Going for a minus record with this one... dont let me down

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