Krugman Lectures Us on Depression Politics.  We need to “to transcend several conventional prejudices” and Spend Spend Spend.

The New York Times—aka the Walter Duranty Papers [1]  has an all-embracing and tortuous history of apologizing for Communism, propping up losers, celebrating AIDS along with the perverted practices that spread this horror, practicing the wanton tax whoring of higher taxes for any implausible reasons, praising African and South American dictators and despots in their opinion columns and scrounging for original new ways to reinvent Marxism as a new-fangled and magical solution to achieve a great society.  The Times has never relented from its pathological contempt for capitalism. The Times has relentlessly praised any leftist parasite or pervert who will openly parade their dishonor in our now degenerated society.  Today, the Times instructs us on the essence of the Obama Depression Politics.

Our newest, but least intellectually gifted  igNoble Leechette[2][3], blessed with insights and the arcane ability to divine  the particulars of Depression government policies will now ‘’splain’ to us what  depression politics looks like, but without any mention of taxes or government revenues:

The preamble:

“The economic news, in case you haven’t noticed, keeps getting worse. Bad as it is, however, I don’t expect another Great Depression. In fact, we probably won’t see the unemployment rate match its post-Depression peak of 10.7 percent, reached in 1982 (although I wish I was sure about that)”[4]-- Depression Economics Returns By Paul Krugman Op-Ed Columnist Published: November 14, 2008 [Emphasis is mine in all quotes.]This link references all quotes in this essay unless otherwise stated.

Not a depression:

“We are already, however, well into the realm of what I call depression economics. “

Depression-Level News #1

“To see what I’m talking about, consider the implications of the latest piece of terrible economic news: Thursday’s report on new claims for unemployment insurance, which have now passed the half-million mark.”

Depression-Level News #2

“And with no possibility of further interest rate cuts, there’s nothing to stop the economy’s downward momentum. Rising unemployment will lead to further cuts in consumer spending, which Best Buy warned this week has already suffered a “seismic” decline. Weak consumer spending will lead to cutbacks in business investment plans. And the weakening economy will lead to more job cuts, provoking a further cycle of contraction.”

Fact: Deflation is the current disease. Liquidity [that is money and bank accounts for the benefit of those who live in Philly or Baltimore] is increased by injecting money into the society with interest rates. This is the only known way to fight deflation, the major problem we face now. Deflation happens when the money supply contracts. Let us hear from an English expert in this field:

The truth about Deflation and Its Cure, if any from Ambrose Evans-Pritchard:

"It is going to be absolute murder in Britain if inflation turns negative [the definition of deflation-- ed]," said Professor Peter Spencer from York University. "The big difference with past episodes is that we are now much more heavily indebted. Few people owned their own houses in 1930s. Debts were miniscule."

Deflation has other insidious traits. It causes shoppers to hold back. They wait for lower prices. Once this psychology gains a grip, it can gradually set off a self-feeding spiral that is hard to stop.

It also redistributes wealth – the wrong way. Savings appreciate, which is nice for the "rentiers" with capital. The effect is a large transfer of income from working people with mortgages to bondholders. (These may be pension funds, of course).

The modern warning to us all is the "Lost Decade" in Japan, a loose term for the on-again, off-again slump that ultimately led to zero interest rates and – when that failed – to the printing of money. After 18 years, the Nikkei stock index is now trading at 8,700 – down from a peak of nearly 40,000. House prices have fallen by half. Yet after all the stimulus, the country is once again tipping back into deflation.”-- Abandon All Hope Once You Enter Deflation by By Ambrose Evans-Pritchard. Telegraph [London] 12 Nov 2008

rycK’s Analysis so far on this propaganda piece.

It is astonishing that our krugmaniacal essayist here cannot seem to discuss deflation in level terms. Only spending in massive quantities is offered. No discussion of taxes. Why even think about Federal revenues when the government can just print money? Any tax hikes would just make a depression much worse and that is probably the goal of the left. They cannot survive in the arena of capitalism so why not take this opportunity to end it and institute socialism? Sounds like a wonderful program for the left.

This is the time to ‘redistribute the wealth’ and not the way Ambrose Evans-Pritchard tells us about from London—O’bozo and Krugman want to grab wealth from the capitalists and give it to the ‘poor.’

They haven’t had an opportunity like this since the October Revolution.

“To pull us out of this downward spiral, the federal government will have to provide economic stimulus in the form of higher spending and greater aid to those in distress — and the stimulus plan won’t come soon enough or be strong enough unless politicians and economic officials are able to transcend several conventional prejudices.”-- Paul Krugman

Like the prejudice against capitalism, profits and free markets?

“One of these prejudices is the fear of red ink…. Another prejudice is the belief that policy should move cautiously…. So when depression economics prevails, prudence is folly.”

“All indications are that the new administration will offer a major stimulus package. My own back-of-the-envelope calculations say that the package should be huge, on the order of $600 billion.”-- Paul Krugman

From a recent proclamation from our Leechette:

“Well, there’s no question that fighting the crisis will cost a lot of money. Rescuing the financial system will probably require large outlays beyond the funds already disbursed. And on top of that, we badly need a program of increased government spending to support output and employment. Could next year’s federal budget deficit reach $1 trillion? Yes.”--Paul Krugman November 7, 2008

The Leechette’s Economic Hero writes during the 1930ss Great Depression:

“Keynes himself placed equal emphasis on redistributive taxation and a monetary policy of ‘cheap money’ as well as fiscal policy, and he did not believe governments should run deficits for current consumption, as opposed to public investment. He was by no means a socialist in the usual sense and did not advocate big government for its own sake.”[5]—Wikipedia on the Keynes book: The General Theory of Employment, Interest, and Money 1936 [3-4 years after the low point of the depression.]

The final act in our socialist intermezzo:

“My own back-of-the-envelope calculations say that the package should be huge, on the order of $600 billion.”

“So the question becomes, will the Obama people dare to propose something on that scale?”

rycK’s Analysis on this: My back-of-the-envelope calculations tells me that our homes and 401(k)s are in jeopardy and the drooling tax whores will be howling for our assets. All they can do is seize our property and means of production with taxes or worse. The last 150 bln stimulus did nothing. 4 x nothing is still nothing.

Where is the Krugman analysis of raising taxes or, as Plugs Promised, giving a tax cut to everybody who makes less than $250,000? Did our krugmaniacal economist forget to mention taxes and the cost of socialized medicine and a KGB civilian security force that is the size of the army? Do the Democrats want a redistributive taxation in the Keynesian m0de?

From an O’Bozo Solemn Promise to the masses:

“What I’ve said is I want to provide a tax cut for 95 percent of working Americans, 95 percent. If you make more — if you make less than a quarter million dollars a year, then you will not see your income tax go up, your capital gains tax go up, your payroll tax. Not one dime.”[6]—Obama in the McCain/Obama Debate Oct 15, 2008.

And Plugs [The Buffoon] responds with the same song as he hears his master’s voice:

“"Read my lips," Biden [this is the guy Plugs ed] said, using Bush's famous phrase while referring to a Barack Obama administration. "Nobody, nobody making less than $250,000 is going to see a penny of their taxes go up."[7]—Biden in an incoherent rant at some county fairgrounds near the campus of Ohio University in Athens on Oct 15, 2008.

There is now a half a world of persons who will be socially and economically mangled in this Depression and they will howl for our money. Where there is capital, as in our 401(k)s the world will root and toot and bawl for our money. Examples of Third World swarming masses that are now doing that include California, Michigan, New York and New Jersey. The illegal aliens are set to march in Washington on Jan 21, only 1 day after O’Bozo is elevated to the office of Commissar.

There will be howls to blame capitalism for this and grand speeches that sanction the confiscation of your savings and other assets like They do not like private wealth or private property  and will grab as much as they can. [8]

Why don’t we legalize 20 million illegal aliens and give them some new civil rights benefits, job quotas, and see how they vote for that?

Look out when a slavering Marxist gets in power. Everybody loses. Your home and savings are one the chopping block now. Aren’t you thrilled that you wanted ‘change?’ You are going to see more of this than you dreamed.

rycK

Comments: ryckki@gmail.com