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Krugman of the NYT Complains about a ‘Failure to Rise.’ We Should Spend More and Nationalize the Banks.

Krugman of the NYT Complains about a ‘Failure to Rise.’ We Should Spend More and Nationalize the Banks.

The New York Times—aka the Walter Duranty Papers [1] has an all-encompassing and circuitous track record of apologizing for any form of big government as long as it involves huge spending and high taxes. Today, the Times’ famous noneconomics economist Paul Krugman [2][3]grinds away with some bizarre mental notions about a ‘Failure to Rise.’ If this is a blurred sexual innuendo then it has succeeded, at least in my case. Let us enjoy his strange theories on economics and government.

I[4] have included an executive abstract of this blog that condenses the facts and themes.

Abstract of this blog: Paul Krugman continues to honor and sustain his monotonous and tautological socialist puppet image as a false economic prophet and now tells us that government spending must make up the coming deficit in the GDP. This nostrum, straight out of Moscow Central Planning or other such Marxian think tank follies, supplies us with the facts to declare Krugman an economic counterfeit or, perhaps, merely a garden-variety, simple-minded Marxist. There is no lucid discussion of debt in any of Krugman’s recent rants as to how we can handle massive debt or the looming inflation we will get from printing money.  The only position he defends is that tax cuts are never an option. He advises us to ignore the deficits for a few years. Krugman hopes to nationalize, temporarily[?], the banks so as to do something with toxic assets produced by leftist social programs that gave mortgages to people with lousy credit and illegal aliens.

In today’s exciting episode Times’ igNoble Leechette[5][6][7][8] starts with this:

“…stimulus package was a great victory for President Obama…. Break out the Champagne!.. Or maybe not. [What?? Ed.]These aren’t normal times, so normal political standards don’t apply: Mr. Obama’s victory feels more than a bit like defeat. The stimulus bill looks helpful but inadequate, especially when combined with a disappointing plan for rescuing the banks. And the politics of the stimulus fight have made nonsense of Mr. Obama’s postpartisan dreams.”[9]-- Failure to Rise by Paul Krugman Op-Ed Columnist [Emphasis is mine in all quotes.]

 This can only mean that this budget-busting monstrosity is not big enough in the eyes of people like Krugman. Like sex and drugs for many liberals, there is never enough. Krugman’s postpartisan dreams are wet, at best.

To hear his own head rattle to the thesis of the The Internationale (L'Internationale in French)[10] our krugmaniacal econowizard dons a grass skirt and then throws the old moldy bones on the drum and regurgitates his hackneyed analysis against tax cuts, which spurred on our economy for JFK, Ronald Reagan and George Bush:

“…In both the House and the Senate, the vast majority of Republicans rallied behind the idea that the appropriate response to the abject failure of the Bush administration’s tax cuts is more Bush-style tax cuts.”

One reason for this imperceptive view is that massive spending has trashed our economy with too much debt, from which we may not convalesce, and in a debt-driven depression-induced deflationary spiral this can only make things mediocre at best. This stimulus only encourages the size of government and does not address job creation. Government jobs are not really jobs—they are inefficient and only contribute to costs.  They are anti-jobs akin to antimatter.  In the mode of disintegration when antimatter meets matter, government jobs destroy society. Government employees, apart from the military and bare essentials are merely parasites.  Tax cuts along with spending cuts would give us both prosperity and a balanced budget.

As for tax cuts, Obama could have cut FICA and FICM and/or some other withholding taxes and transferred money from Treasury to temporally cover the shortfall.  Growth in the economy and increases in tax revenues would have paid that back. That tax maneuver would have instantly injected money into the population of workers. Cutting corporate taxes would have encouraged business to expand, take some risks and hire more people. No.  They opt for failure when they had a chance to save the economy.  Now, we head for a debt-driven depression. Nobody will dare loan money to people with phony government jobs. They will lose them in a few years. Watch California and New York.

For while Mr. Obama got more or less what he asked for, he almost certainly didn’t ask for enough. We’re probably facing the worst slump since the Great Depression. The Congressional Budget Office, not usually given to hyperbole, predicts that over the next three years there will be a $2.9 trillion gap between what the economy could produce and what it will actually produce. And $800 billion, while it sounds like a lot of money, isn’t nearly enough to bridge that chasm.”

This hyperignorant statement shows us exactly what Krugman is and why he is not: an economist. He just affirmed that the ‘gap’ in gross economic production should be made up by government spending. This sounds like Sweden and France, both heading to a good long dive into the latrines as we write. Krugman can only endorse government spending as the source of maintaining the GDP. Well, the USSR had essentially 100 % government spending for 74 years. How did that turn out? Their command economy is crashing again as this is written. Their ruble is so much toilet paper now.

Krugman now solidifies his position as a Marxist [or a simple stooge thereof] as he pronounces Little Timmy Geithner’s phony debt plan as ‘vague’ and then calls for nationalization of the banks:

The plan sketched out by Tim Geithner, the Treasury secretary, wasn’t bad, exactly. What it was, instead, was vague. It left everyone trying to figure out where the administration was really going. Will those public-private partnerships end up being a covert way to bail out bankers at taxpayers’ expense? Or will the required “stress test” act as a back-door route to temporary bank nationalization (the solution favored by a growing number of economists, myself included)? Nobody knows.”

Tim’s plan was vague as he has no notion of how to sell the toxic debt. The bankers are stuck with toxic debts from giving mortgages to losers, mostly Democrats, inner-city Main Street types  and illegal aliens. A temporary bank nationalization is like a temporary case of AIDs.

“And I don’t know about you, but I’ve got a sick feeling in the pit of my stomach — a feeling that America just isn’t rising to the greatest economic challenge in 70 years.”

This phallic allusion is sickening as it tends to equate failure with promiscuous sex, probably drugs and other leftist grand accomplishments. The greatest economic challenge will be to recover from massive inflation caused from printing money, a process endorsed by leftists called ‘quantitative easing.’ O’Bozo will become the very essence of failure on this planet.

So, we have two years of massive debt and massive spending on line before a House majority could stop the spending and reverse some of this wreckage.  Looking into the future, we know that such government spending cannot end with this mere 800 bln spending spree. Krugman just alerted us that we are about 2 bln short.  Plan to avoid taxes, watch your spending and start learning how to cope with first deflation then massive inflation. The massive debt and irresponsible spending will drive the deflationary spiral at full speed down and we will lose a million jobs a month. If we cannot hold this government spending to a certain level within 2-3 years then we will become a third world dung heap or some  Anexo al Norte de México. Viva Zapata Cavrones!!

Massive debt will bury us. Get ready to get into a bunker mentality.[11]

Maybe the UN will give O’Bozo the Robert Mugabe Prize for wealth redistribution.

rycK

 

Comments to: ryckki@gmail.com

 



[1] In honor of that celebrated Communist stooge and liar and winner of the Pulitzer Prize for the NYT. The color RED is used in my essays in honor of Walter Duranty, a saint, if there could be one, in the Marxist Archives of Honor.

[3] Krugman of the NYT Explains Voodoo and Doo Doo Economics: Government Nationalization and Printing Money!http://rycksrationalizations.blogtownhall.com/2009/01/19/krugman_of_the_nyt_explains_voodoo_and_doo_doo_economics_government_nationalization_and_printing_money.thtml

 

[9] Failure to Rise by Paul Krugman Op-Ed Columnist http://www.nytimes.com/2009/02/13/opinion/13krugman.html?_r=1

 

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