The Ultimate Krugman Take-Down

Tyler Durden's picture

Forget Ali - Frazier; ignore Santelli - Liesman; dismiss Yankees - Red Sox; never mind Silva - Sonnen; the new undisputed standard by which all showdowns will be judged happened in Spain over the weekend. During a debate on Europe's crisis, Pedro Schwartz (a mild-mannered Spanish 'Austrian' economics professor) took on the heavyweight Paul 'I coulda been a Fed Chair contender' Krugman, and - in our humble opinion - wiped the floor with his Keynesian philosophy. From the medicinal use of more debt to fix too much debt, to the Japanization of world economies and the demand-side bias of every- and any-thing - interested only in the short-term economic growth; the gentlemanly Spaniard notes, with regard to the European crisis, the fact that "Keynesians got us into this mess and now we have to sacrifice our principals so that they can get us out of this mess". Humble and generous in his praise - though definitively serious with his criticism - Schwartz opines: "Often Nobel prize winners are tempted to pontificate on matters that are outside the specialty in which they have excelled," noting "the mantle of authority whereby what ever they say - whether sensible or not - is accepted with resignation from some and enthusiasm by others." Krugman's red-faced anger is evident at the conclusion as he even refused to shake Schwartz's hand after the debate.

For 15 minutes of both education and entertainment - this is as good as it gets...

  • Starting from around 35:00 the Spanish professor praises and criticizes in a thoughtful and gentle tone
  • At around 39:00, he addresses the demand-side description of the world
  • Krugman's less-than-happy response (which sparks quite a rowdy argument) begins around 48:20


(h/t Jean Luis Martin of the Truman Factor)

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Totentänzerlied's picture

Illegal and unethical (definitely nont the same thing) activities are the key to success, all those uberrich politicians and bankers can't be wrong.


What they should have said was "making unethical activities legal for me and illegal for you is the key to success", counterfeiting money, anyone? Bernank?

SAT 800's picture

Yes. Very good. Never let a crisis go to waste, etc. Global Warming, etc. etc.The very mechanism of fleecing the ignorant sheep.

Clueless Economist's picture

I won that debate damn it all!

The only solution to the debt crisis, is more debt.

Professor Doctor Paul Krugman

Ivy Leaguer, Economist, Genius, NY Times writer, and All-Around Douchebag.

WestVillageIdiot's picture

"Ivy Leaguer, Economist, Genius, NY Times writer, and All-Around Douchebag."

I love to see multiple redundancies in a single sentence.

This guy is unfit to work at a grocery store or even run a hotdog stand. 

FEDbuster's picture

The perfect candidate for our next Treasury Secretary.

Ratscam's picture

There is NO Nobel price in Economics or Mathematics. Research yourself. It is yet another scam.

bsdetector's picture

Dr. krugman, interest rates have been held low through artifice so you cannot use their levels to justify any of your arguments. You should be able to observe this Doctor and for the fact that you fail to acknowledge the artifice means that nothing you say will be received with any credibility. Please go home Dr. Krugman and start writing books about gardening.

Temporalist's picture

He also fails to acknowledge in his first chart that government is part of the problem.  He includes banks in his "layers of crisis" shit cake but forgets, or rather intentionally omits, to add that governments spending more than they take in is the massive elephant in the room.  If deficits weren't a problem then Spain would just have an ever expanding public workforce to keep unemployment low.


It's not that Spain is borrowing too much, it's that they are borrowing at too high a rate. 

SAT 800's picture

Of course, this is correct. Governments are the entire problem; there is no other problem but the government; there never has been any other problem than the government.

sunaJ's picture

That which intelligence giveth, a lack of wisdom taketh away.

FFox's picture

Hmmmm, let's notice now.... how's that austerity thing working for you JP Morgan/Goldman Sucks, neo-con folk?

An engineered collapse... by the elite, for the elite, at the expense of the working man.  And once they've grabbbed the tangible assets (cars, boats, houses, businesses, companies, gold, silver, high-end whatever (with their criminal capital)... then they hit the inflation accelerator hard!

And everyone is screwed except, you guessed it, the elites neo-con shills who stole the supreme court, and the election of Al Gore... and began wars on false pretense that we're stilll stuck in (because of the elites guy... the wallstreet shoe shine boy Oscamma (placed into position with Timmy G.) by the elite criminal capitalists.

So, yes it would have been better to use those bankster bonuses and give aways on the nation's first  high-speend train... but no... no money for roads here, or anything else because of the military industrial complex pillage... for the benefit of guess who?

Answer:  The master planners who serve the elites... filling the sheeple with misinformation and taking their wool through massive fraud and MSM (main stream media) programming... thus:

"When truth is considered absurbity, the end is near"

So with the upcoming election... the choices will be:  Getting your left hand smashed with a hammer... or your right hand smahed with a bat... workers are screwed (certain) either way. 

So sayeth the Fox.



New_Meat's picture

FFox, OK, four legs good 'n all, but:

"Hmmmm, let's notice now.... how's that austerity thing working for you JP Morgan/Goldman Sucks, neo-con folk?"

What austerity are you talking about with JPM and GS?  No evidence of anything even close in that direction.  What neo-conz are in that mix?   What are the neo-conz are you talking about?  Susan Rice?  HRC?  panetta?

- Ned

{I'll start thinking about the "steal the Supremez" comment, but 'twere ever so, otherwise fdr wouldn't have tried to "pack the court"}

A reddie on ya.

AldousHuxley's picture

don't play chicken with the gambling house......they have near infinite capital.



DOT's picture

"What austerity are you talking about with JPM and GS? No evidence of anything even close in that direction."

Austerity is for the peasants.

eclectic syncretist's picture

November is going to be easy for me.  Vote out all imcumbents, write in Ron Paul for President.  I'll walk out knowing I did the right thing.

SAT 800's picture

The real world is a little more complicated than that. By writing in ron Paul, you throw away your vote. This is exactly what Hilary, (I am a felon), Clinton was exulting over when she complimented Ron Paul on the fervency of his supporters; she was looking forward to the lost vote delivering up the victory for the incumbent; something which we have already seen here in the United States recently; it's a well understood mechanism. In order to do the right thing you must vote for Romney. Why? Because we tried Obama and we know what the result is. As Albert Einstein encouraged us to remember, repeating the same experiment and expecting a different result is stupidity. We need a different kind of crook; a sophisticated crook who is privy to the ways and means of the white power elite business class, and can subdue them somewhat in favor of the people, in order to secure his re-election. Drilling for oil and cancelling Obama Care are all you need to consider; although there is much more. This is the first time in my life I will register and vote in a Presidential Election and I am 69 years old. The country is at stake. There's no time left to goof around.

Fidel Sarcastro's picture

~40:50 he says of Krugman's drivel "It's homeopathic medicine of the worst kind." EPIC smackdown!

Oh regional Indian's picture

This is the kind of stuff America (mainstream) never gets to see OR understand.

Epic indeed. Stilleto met fat iron ball.

Stilleto won. Hands down.

Supply Side death staring us in the face. Been saying this for over 4 years on record now. About time!


Alexandre Stavisky's picture

Amazing how the simplest conclusions can be confounded by the delusional.  "A man's spirit can pass into another's if touched". 

Dark Arts.  Insolvency can never lead to solvency.  Weakness can never lead to strength by indulgence of further weakness.

But "Yes it can!".  Die Grosse Luge.


The global banking community having adopted benchmarking standards wholesale and correlating all the industry of the world that their flag flies under, have met their simple mathematical denouemont. FROM Ne-mawari de susumu TO Ne ga kusari shinde iru.  A steady state economy giving but a little latitude for generational innovations and inventions (energy, information) should be understood to be bound to epochal rates of growth and move to a steady state.

Instead boom-bust, whipsaw economies.  Only rewarding to practicioners of dark arts.

We have met and passed the peak of a global bell-curve in industry.  The baton was passed from real creators (oil, metals, commodities, information) to paper peddlars (professional gamers).

Since passing the peak would mean structural and multi-generational contraction, and because contraction would mean the end of all growth promoters (entire corporate structure, gov't social program mixed economies), all investment would end.  Why put at risk capital with a negative return? Die all bonds, equities, managers of money.

But no.  Instead (noting the fulcrum separating the two) make a choice between the supreme currency underpinning every transaction of humankind AND the purchases it supports...(i.e. all risk assets--R.E., all bearer instruments, all promissory notes of every colour).  Devalue, denigrate, dilute the currency at whatever percentage point suits your ambitions, while pledging the prostitutionally diluted money proxies at arbitrary expansion to that base of risk assets.

Thereby, NOMINALLY risk assets are seen to rise (and the wide asleep delight in positive returns), just as their purchasing power unpreserved in currency falls away in negative degrees of those same comparative returns.

Loss must be taken.  How to do it?  In slow dibs and drabs of Q.E. (like calling a whore a consort), or in instant step function devaluation?

Which will obtain the ill-gotten from the masses best?  There, that is the choice.

GUISE.  Wonderful guise.  The coffers of the unproductive may still flow from the tin cups of the foolish productive.

If sound money existed, this globe would be surrounded in fire.  With the unproductive trying other expert means to obtain from their efficient brothers.

Canny economists with the "touch" can put the hard-working simpletons into their spell. Until they can't.

Strange concepts erupt here at the meridien of monetary and fiscal policy.

Love, sacrifice, uprightness, honesty.  All gone from accounting and the Columbia Schule.

Who would burn a man's house for geese? GUISE?

And as for the woman in the red dress.  NEO, were you looking at the woman in the red dress?

MiddleageThinninghair's picture

Did I hear right that at about 10:30 into the video Krugman say we are in a depression?

Temporalist's picture

The title of his book is "End This Depression Now!"

Peter Pan's picture

St Peter and St Paul finally kissed and made up. I can't see this Pedro and Paul doing the same. Men like Krugman have lead us to hell and men like him would have us roam around hell throwing money at its fires making it even more hellish.

verum quod lies's picture

Much of economics these days, and especially macroeconomics, is a religion. Unfortunately for the Krugmans, Stiglitzs, Summers, … - fill in your favorite ZOG sponsored “economist”- it is a falsifiable religion. That is, most macro empirical experiments have been run (albeit roughly run, but run nevertheless). For example, we know the solution to too much debt isn’t more debt (it’s less or none). We know the solution to too much government spending isn’t more government spending. We know the solution to too much government regulation isn’t more government regulation (captured or not). Etc., etcetera, addnaseum …

What is most amusing is that even though empirical proof directly contradicts him (and others of his faith and academic standing), they continue to talk and write as if there was no real world contradicting them. It’s fascinating in a horrible way, because it has real world consequences, yet it is hard to believe he can maintain such a position. It is sad, but, if we survive this, we will look back and scratch our heads as to what people like Krugman were thinking. My guess is that their hate for traditional U.S. culture and society is so great they kept doubling down on their falsifiable religion until it had a negative impact on them. Thus far, he gets Nobel prizes and tenure for spouting off pure silliness; and is invited to speak (all expenses paid) and justify his court position. For now, he benefits from his lies; let’s hope that soon he will not.


Downtoolong's picture

Did Paul "Professional Blogger" Krugman really just claim that he was doing a good job because people disagreed with him?

Probably so. And the corollary to that is "The only reason things aren't working out is because some people aren't doing exactly what I say". Of course, every economist would be right if that ever happened.

Chuck Walla's picture

Poor little Paul. Its hard to hear some truth after being so fellated by the NYT and American Liberals everywhere. The fragile Lil' fella'  just can't take it. He can dish it out, but criticism from an expert bunches his panties so tight he can hardly stand it.

LawsofPhysics's picture

Why even waste time with these academic fucks.  Academia is not reality. Only the guillotine can save us now...

Big Slick's picture

at 1:50 Krugman equates Donald Rumsfeld's quote "If you are not criticized, you may not be doing your job well" with his own perverse version: "If you don’t make people angry, you’re wasting your time."  Are there no greater words for Krugman to display his twisted brand of misguided priorities to this young audience and the world? 



bankruptcylawyer's picture

the whole juxtaposition of keynes world view verus the austrian world view is just another fraud.

the idea that you cannot reconcile these two views and still hold banks accountable for fraud, shut them down , and reopen them is just another part of the deception.

demand side and supply side both have their points. but the view that 'economics' is a singular lense with which to view the problems is complete propoganda. economic decisions are not made in a political vaccum.

quite to the contrary the biggest of all economic decisions are almost exclusively political/military decisions.

as long as 'professors' of economics are getting people to spend money to show up to debates. they are all winning. it looks like the austrians are 'agaginst' the keynseians. guess what, it also looks like the plaintiff and defense attorney's are 'against' each other. they are all making money off the pretense of their authority which exists because they both show up at a forum they market to the public as legitimate and worthy of their attention. 

you need to realize the forum is bullshit. it's not legitimate . economics does not Need professors anymore. it needs common sense. it doesn't need 'austrians' versus 'keynesians'. 

look at bretton woods. is that supply side or demand side...? or maybe it's just economics and finance at the end of a gun barrel.

I think---at a certain point one must stop listening to these 'debates' . there is no one who is correct or whose version of the truth there is going to save you [ despite my sympathies with the austrians of course ].

the reality is that the tenure of common sense has left the house. the debate no longer hold meaning. the real answer is to close your ears to these debates but then to open your ears to other debates--political and spiritual and military/police power debates. make your choice. 


celticgold's picture

krugman - smugman

i-dog's picture

What a despicable piece of listhping, unshaven, lying, slobbering SLIME!

palmereldritch's picture

C'mon! He's the Comic Book Guy of Economics!!


LongBalls's picture

History will determine that Krugman was nothing less than a snake oil salesman.

JLee2027's picture

Down goes Frazier! Down goes Frazier! 

IndicaTive's picture

I was on vacation. I must have missed the highlights on CNBC.

vmromk's picture

Krugman, FUCK YOU and the SCUMBAG Bernanke as well.

Shizzmoney's picture

"I live this shit, man!" - the Spanish Professor

jcamargo's picture

I lived this shit as well in Brazil in the 90s.

As some ZH readers would say, 

inflationary spiral, bitchez! There is no stopping at 5%, no way.

eclectic syncretist's picture

And he did keep it very civil.  He could have mentioned Krugman's  propensity to invoke things like alien invasions and free spiderman towels as ways to promote economic prosperity.

Cabreado's picture


the Self-Absorbed are an embarrassing lot.

And they fck it all up, eventually.

They are the Dangerous.

They are to be Shunned.

And We'd better figure that out yesterday.

lizzy36's picture

When did Krugman get so fat. Jesus dude really doesn't believe in austerity. 

Krugmans anger is evident as "deference to pedigree" ends. 

brettd's picture

Pedigree indeed!  After giving us Summers, Obama, Roehmer, Geitner & Krugman it's a wonder

anyone wants to go Ivy League any more....

Kayman's picture

Kruggy is practising what he preaches.  Living large on your dime.

death_to_fed_tyranny's picture