Krugman Predicts Doom for the Economy and the Election of Obama

We are anxious to study and digest the facts presented by Paul Krugman as we examine the egalitarian minutiae from the latest political proclamations from the New York Time. Today we get an essay on bubble economics. Of course, politics is not based on truth and a gaggle of slobbering economists cannot even get a 50% record of predictions of market directions, so we have to sift out the politics from the economic realities when we read the krugmaniacal one. We expect little other than propaganda and leftist narcotic dreams from essays of the NYT—aka the Walter Duranty Papers[1]. Today, the ultimate doom of the economy is presented using bubble logic and other phantasms that haunt the left in the form of lost tax revenues.[2]

“Home prices are in free fall. Unemployment is rising. Consumer confidence is plumbing depths not seen since 1980. When will it all end?

The answer is, probably not until 2010 or later. Barack Obama, take notice.”--L-ish Economic Prospects By Paul Krugman July 18, 2008. [3][Emphasis is mine in all quotes. This link references all quotes in this essay unless otherwise noted. ]

Here, a prediction is proffered by our non-economist from the NYT: 2 years from now.

Home prices are not in free fall—they are adjusting to market conditions brought on by over production of housing and limited credit. Any time some market driven item goes down it is the fault of capitalism or Bushism and when it goes up then it may be the result of good government, prudent planning or some other leftist theme unless it generates profits. We can blame the far leftist Greenlining[4] [5] project, a ‘program’ that allowed dead beats, drug addicts, parasites and hucksters to get cheap loans at the expense of banks. Their personal defects are shielded from the credit rating agencies so loaners cannot tell who not to loan money to. Many of these people should not have ever been home owners, but should have stayed in detox, the streets or the mental hospitals where they had some food and a warm place to take a dump. The phony loans given to the undeserving types caused much of this mess as we see in Baltimore in the Skid Row areas. They are better off there ignoring the obvious street drug deals and creating jobs for social workers in Baltimore, Oakland and Philly. But, such phony programs generate votes for liberal Democrats.

Thank you for this. We will remember this and remind your readers of your predictions.

 The rest of the article cooks up the usual Mulligan stew of missed liberal opportunities such as this fluff:

“Should we expect [housing] prices to fall all the way back? Well, in the late 1980s, Los Angeles experienced a large localized housing bubble: real home prices rose about 50 percent before the bubble popped. Home prices then proceeded to fall by a quarter, which combined with ongoing inflation brought real housing prices right back to their prebubble[6] level.”

Apparently, there is some bubbly correction mechanism in play that haunts the fevered minds of the far left, exemplified here in this rant that may be different from the usual confluence of supply and demand curves that they teach in elementary economics. I wonder if Krugman ever took an economics course? That would not be mandatory as the training and credentials required to be anointed as a distinguished fellow or university professor are not stringent. Any jerk who denounces capitalism is fit to teach at Harvard. So, they can loudly and confidently proclaim nuances in advanced economics from their high perches while constantly correcting Adam Smith and Say where appropriate. The late 80s decline in real estate in California and Texas were actually isolated and not indicative of a general trend. Krugman frequently cherry-picks the rotten fruits from the economic basket so as to generalize and create new problems and offer proof for his unique new Laws of Economics.

And as an historical summary:

“Ending those old-fashioned recessions was easy because all the Fed had to do was relent. Ending modern slumps is much more difficult because the economy needs to find something to replace the burst bubble.”

This is about the phoniest essay on economics I have ever read. Markets self-correct and any changes in the normal swings in market levels are grand opportunities for leftists to drool on t heir shoes and proclaim the need for new economic measures, translated, as always, as higher taxes and more government.  We can suppose that the 1987 stock market crash was a bubble or perhaps the times when oil was only about 12$ per barrel and Exxon was losing money. When gold fell from 998$ to 265$ from 1979 to 2000 that must have been a golden bubble. Why is gold now $950? Did the bubble unburst? When the cost of long distance telephone fees fell monotonically for several decades then that must have been a phone bubble.

How many troubles do we have with bubbles?

Easy, like the job they had to do for the Jimmy Carter Malaise? High interest rates and lower spending are the usual remedies. That causes unemployment. It is interesting that O’Bozo has offered to increase spending and taxes on nearly every facet of our economy except the military. That requires very high new taxes. We can wonder if Krugman can show us how the economy can expand, create new jobs, save the auto industry, keep inflation remain be low and have housing prices restored to prebubble levels with an Obama economy?

“If you ask me, there isn’t much suspense in this year’s election: barring some extraordinary mistakes, Mr. Obama will win. Assuming he wins, the real question is what he’ll make of his victory.”

What did leftists ever do but howl and attempt to increase taxes and spending? I wonder if this is one of the NYT types that predicted that Hillary would be the next President. The NYT did first endorse Hillary. O’Bozo is a racist, a racist enabler and a far leftist. He offends many with this bigotry, anti-Americanism and tax whoring. He may not win unless ACORN and other criminal groups can stuff enough ballots in the inner cities. It is a long time to November Dorothy.

The Krugman solutions to all problems: high taxes and big government may not be possible even if O’Bozo wins the contest. With the need to increase interest rates [the price of money for the Rio Linda and Baltimore types] the economy cannot expand with new jobs. The Obozo theme of taxing everybody with an income above 250,000$ [not enough money there, sorry…] would also knock out investment in new jobs and businesses, the only major source of new jobs in the economy except for the phony government jobs.

The other missing items here include the missing criticism of people like Chuckles Schumer[7], a racist, traitor and social parasite who leaked sensitive government oversight documents on a big bank [Indy Mac] and caused a run. I guess it is okay for Democrats to sink banks. Did Indy Mac forget to bribe Chuckles? One more jewel, but a salient leftist point, is the notion from Maxine Waters, a psychotic racist, who wanted to nationalize [socialize in her words] the oil companies.[8] France has already done that, and reversed some decisions, and so did Britain off and on. These people are economy wreckers, but are icons of the left as are Jesse Jackson, Al Gore the ‘scientist’[9] and others. It seems socialism has worked well for Europe and Maxine might be the new Commissar who selects the businesses to be grabbed by big government. The USSR was a howling success just like the Great Leap Backward.

Where is the critical economic analysis of California? That state[10] is going to go bankrupt al0ng with New Jersey[11] and Michigan. Maybe Krugman thinks the Calif0rnicans can continue to barrow and spend hoping for a federal bailout since their phony constitution does not allow barrowing past a certain limit and they will go down 15 billion or more soon. Maybe Nancy Pelosi[12] and Dianne Feinstein can get O’Bozo to give some money to California out of the general tax revenues so they can spend more money on sloth, sodomy, slavery, Asian massage parlors and sex with children and pets.

As usual, no reasonable criticism of our path forward is available from the hand-wringing droolers at the Walter Duranty Papers. There is no comment on the supply and demand functions that govern the oil prices as these impacts on leftist politics. Many drooling leftists cannot believe that drilling and producing more oil will lower prices. The economy needs cheap oil and we have plenty, but the EcoNazis [13]try to block any new attempt to increase the energy supply as they have now done with T. Boon Pickens’s wind machine idea[14] in West Texas.

But, we have to praise Paul Krugman for this bubbles comedy and sharing his erratic mumblings with us disguised as the result of competent economic analysis. This is always fun.

 Grunt and Grab

The liberals will say and do anything to get more political power and grab more wealth. Anything at all.

rycK

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