Minutes ago, the always delightful Munk Debate on the American economy concluded, which pitted two skeptics: David Rosenberg and (yes, he is a skeptic when it comes to his belief in the "proper" implementation of Keynesianism) Paul Krugman on the one hand defending the null motion of the debate, against Larry "Warren (watch the clip)" Summers, best known for destroying capitalism, and Ian Bremmer. The core debate topic was as follows: "North America faces a Japan style era of high unemployment and slow growth an accurate forecast of the future." Naturally, as Krugman immediately explained, by North America the organizers mean the US, simply because Canada is too small and hasn't screwed up enough (we would add that the screw up has not been perceived yet: everyone has screwed up, but luckily we have enough distractions for the time being). Either way, the progression of the debate should not come as a surprise to most, neither how each particular economist will perform: that Rosie sees Japan in every aspect of the US should not surprise anyone; that Krugman does too unless the politicians agree to being invaded by aliens, is also to be expected. On the other side, "Warren" Summers' argument can be simplified to his fallback motto of Keynesianism and Central Planning 101 in which he believes that the printing of money and job creation are sufficient to fix all US problems. No surprise there either: after all this is the man who three weeks ago said: "The central irony of financial crisis is that while it is caused by too much confidence, too much borrowing and lending and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending."
So while certainly an interesting way to spend 90 minutes, we urge readers not to expect any preconceptions to be overturned (possibly quite the opposite). If anything, we urge readers to fast forward to 34 minutes into the clip to listen to Larry Summers' prepared remarks to realize the unprecedented degree of delusion that is being exhibited by the man who was Obama's right hand advisor during the key period in the "rebound" from 2009 to 2010. It is no wonder that the US economy is now in a worse condition than ever, and flirts with complete socio-economical collapse on a daily basis (as does Europe and the rest of the "developed" world) only to be pulled back from the abyss by the latest and greatest monetary and fiscal stimulus. Because should the methadone be taken away, the addict will die on the spot.
The supreme irony of course is that for the grand reset to finally occur, what we need is not one or two more "Summerses", but a countless army of such delusional lunatics whose idiotic actions will finally destroy this country, ushering in a new and better age where we can finally restart from scratch.
Watch the full debate below. It begins roughly 17 minutes in.