The Chairman of Morgan Stanley Asia is about as direct as one can be in the following Bloomberg interview: "We should take out the baseball bat on Paul Krugman -- I mean I think that [his] advice [to push China to revalue the Renminbi] is completely wrong.” Well, somebody had to finally say it. So instead of pointing the scapegoating finger somewhere else, which seems to be the norm these days (cue G-Pap and his quadrillionth repetition that Greece is perfectly solvent and that unless somebody bails him out (ignore the lack of logic for a second), he will start playing Russian roulette with a fully loaded gun), Roach looks in the mirror: "America does not have a China problem. America has a savings problem. America has the biggest savings shortfall of any leading country in modern history, When you don't have savings you have to run current account deficits to import surplus savings from abroad and run massive trade deficits to attract the capital... Isn't it the height of hypocrisy that America can articulate a particular position in its currency but the Chinese are not allowed to do that." Also some not so kind words about Senator Schumer: "He always has a view no matter where the Renminbi is, that it is 27.5% undervalued."
In his attempt to salvage some of his "reputation", Krugman proves once and for all why economics is the most moronic "science" in the world:
“I’m a little surprised at Steve for saying that,” said Krugman, the Princeton University professor and Nobel laureate in economics, in a telephone interview when asked to respond to Roach. “What I said is actually based on pretty careful economic analysis. We have a world economy which is depressed by China artificially keeping its currency undervalued.”
Hey Paul, what about the fact that the world would have been below a "depression" state, had China not been the defibrilator that kept the heart of the catatonic global economy beating for the past two years. Is there a chapter in the "Pretty Careful Economic Analysis" textbook on selective fact cherry-picking? Right, we figured. In the meantime the NYT's potential "paywall" content is rapidly amortizing to the point where people will soon have absolutely no desire to pay for the NYT's "expert" paid-for opinions. Which means Goldman is about to put the NYT on the conviction buy list.