Posted by
rycK on Monday, December 22, 2008 12:00:35 PM
Krugman of the NYT Has Divined the Future for US:
Obama Will Heal with More Government and Higher Taxes!
The New York Times—aka
the Walter
Duranty Papers
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’ famous noneconomics economist Paul Krugman grinds
on with their ongoing propaganda touting the essence of the Obama
Depression Politics
where the fault is that of Bush and all will be healed by 2010 with more
government and printing money and astronomical deficits.
Our igNoble Leechette,
blessed with insights and the arcane ability to divine the particulars of Depression
government policies will now ‘’splain’ to us all these wonders:
“Whatever the new
administration does, we’re in for months, perhaps even a year, of economic
hell. After that, things should get
better, as President Obama’s stimulus plan — O.K., I’m told that the
politically correct term is now “economic recovery plan” — begins to gain
traction. Late next year the economy should begin to stabilize, and I’m fairly
optimistic about 2010.”--
Life Without Bubbles By Paul Krugman Op-Ed Columnist Published: December 22, 2008 [Emphasis is mine in all quotes.]
We had several years
of economic hell from the Carter administration. High interest rates and low
taxes got us away from that Marxist Stooge.
“But what comes after that? …
In fact, however, things can’t just go back to the way
they were before the current crisis. And I hope the Obama people understand
that.”-- Paul Krugman
Ah, an essay on
taxation and more government will spring forth in a new burst of song and hokum
in the next few paragraphs? Let us see if our krugmaniacal
One
just turns the old crank on his single-song hurdy-gurdy.
“The prosperity of
a few years ago, such as it was — profits were terrific, wages not so much —
depended on a huge bubble in housing,…”
“To be more specific: the
severe housing slump we’re experiencing now will end eventually, but the immense
Bush-era housing boom won’t be repeated. Consumers will
eventually regain some of their confidence, but they won’t spend the way they
did in 2005-2007, when many people were using their houses as ATMs, and the
savings rate dropped nearly to zero.”
We might search for any comments here on ‘compliance’ uttered by Barney Frank and his ‘affordable housing,’ the granting of zero-down loans to 5 million illegal aliens [at
a cost of $150,000 x 5 million or $750 billion dollars!]. Where is the essay on that? No explanation how the CRA[Community Communist
Reinvestment Act] cranked up some 5 trillion
in toxic debt at Fanny Mae? $750 billion dollars
sounds like an economic stimulus program to me, thanks to the liberals. The war
in Iraq is
about that much. $5 Trillion is a bit more.
Solutions to our
problems:
“A more plausible route to
sustained recovery would be a drastic reduction in the U.S. trade deficit, which soared at the
same time the housing bubble was inflating. By selling more to other countries
and spending more of our own income on U.S.-produced goods, we could get to
full employment without a boom in either consumption or investment spending.”
This is called protectionism and calls for competitive currency
devaluations and tariffs among nations. That is what propelled the Great
Depression and ruined our agriculture sales in the 30s. Why not put tariffs on automobiles so we can
continue to coddle the UAW and keep their political donations flowing into the
Party of Democrats? Why not put a $10,000 tariff on all non Detroit produced autos and then
give the UAW $30 for each hour they work? This is also so much crap. We can have reduced consumption and low
investment and maintain our GDP? Well, there is one
way, and that is government would make up the difference and pay salaries by
printing money. France’s GDP is 51% of the GDP so Krugman sees
another 25% expansion in government—the same bunch that gave us Fannie Mae and
5 trillion dollars in bad debt. Gee, that sounds like great economics. What
happens when our trading partners retaliate? Depression?
“Furthermore, even if the
dollar falls again, where will the capacity for a surge in exports and
import-competing production come from? Despite rising trade in services, most
world trade is still in goods, especially manufactured goods — and the U.S.
manufacturing sector, after years of neglect in favor of real estate and the
financial industry, has a lot of catching up to do.”
Does our igNoble One understand what deflation means? Krugman gurgles here. What
kind of services? Laundry? Haircuts? Car
washes? How about Asian massages parlors—they are a sensation in San Francisco the city that has only ‘services’ and no heavy manufacturing.
And Krugman finally
gets to the bottom line of leftist politics:
“The point is that it may
take a lot longer than many people think before the U.S. economy is ready to
live without bubbles. And until then, the economy is going to need a lot of government
help.”
Krugman has no problem
with deficits now that Bush is leaving:
““Should the government have
a permanent policy of running large budget deficits? Of course not. Although
public debt isn’t as bad a thing as many people believe — it’s basically money we owe to ourselves — in the long run the
government, like private individuals, has to match its spending to its income.”—from a previous Krugman article on NYT.
It is clear to all of us who read this political offal that the
only important factor in liberal politics is to institute big government and
raise taxes when they can. Now, the NYT celebrates the wanton printing of money [quantitative easing] and
high deficits and bailouts of leftist labor unions.
These parasites will do a great deal of damage to economy so we
must boycott such phony items as electric cars, anything in California, NY or
NY and let them crash. The capitalists will pick up the pieces, repeal their
phony laws, get rid of the CRA and we can get back
to normal after we foreclose on 15 million deadbeats.
rycK
Comments
to: ryckki@gmail.com
“Bear
Stearns made the first public securitization of Community
Reinvestment Act (CRA) loans started in
1997.[6] Editorialists in some American
newspapers[7][8] and US Congressman Ron Paul[9] say the CRA loans were lent to
otherwise un-credit-worthy consumers in the name of ending discrimination,
although an analysis of actual lending patterns does not generally support this
conclusion.
On June 22, 2007,
Bear Stearns pledged a collateralized loan of up to $3.2 billion to "bail
out" one of its funds, the Bear Stearns High-Grade Structured Credit Fund,
while negotiating with other banks to loan money against collateral to another
fund, the Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund.[13] The funds were invested in thinly
traded collateralized
debt obligations (CDOs)
found to be worth less than their mark-to-market value. Merrill Lynch seized $850 million worth of the
underlying collateral but only was able to auction $100 million of them. The
incident sparked concern of contagion as Bear Stearns might be forced to
liquidate its CDOs, prompting a mark-down of similar assets in other
portfolios.[14][15] Richard
A. Marin, a senior executive at Bear Stearns Asset Management
responsible for the two hedge funds, was replaced on June 29 by Jeffrey
B. Lane, a former Vice Chairman of rival investment bank, Lehman Brothers.[16]
During the
week of July 16, 2007,
Bear Stearns disclosed that the two subprime hedge funds had lost nearly all of
their value amid a rapid decline in the market for subprime mortgages.