Posted by
rycK on Friday, February 05, 2010 3:39:57 PM
Krugman of the NYT Moans about Deficit Hysteria. We Can Spend
More and More and More!
Abstract: Paul Krugman gives us
a rosy picture of how well the US is doing with its massive
deficits and tells us that debt interest rates that might reach 3.5% of our GDP are not so scary. He fails to mention that our money supply [M2]
will soar from 8 trillion at first appearance of Obama’s magnificent outer
shell to almost 25 trillion in four years counting in health care cap and trade
and a few other spending goodies. He makes the foolish comment that not
spending some 250 billions over three years will cover "whatever happened
on Obama’s watch.” This is so absurd as to defy comment. Apparently Moody’s
threatening to lower the US rating from AAA to
something else is not a concern even though it would mean massive expenditures
to cover this outrage. His ‘calculations’ do not accommodate high interest
rates that would hike his example of 3.5% above to 35% to fight the massive
inflation we might get from this deficit nightmare. Apparently Krugman will do
or say anything to achieve bigger and bigger government with no objection to
crushing debt. Socialism at its finest.
The New York Times sports
a trendy progressive cadre of ‘journalists’
and staff
that advise their readership of new and wonderful ways to achieve political
mastery and success with bigger and bigger government. They extrude the news through a narrow
aperture to align certain current selected financial and social observations
with grand progressive ideological revisionism much in the manner of their honored
Pulitzer
Prize winner Walter
Duranty. Government is always best when it
controls everything. Paul Krugman is
one of these gifted swamis in the ideological propaganda games, specializing in
the tautological harping upon the compulsory utility of the discredited Neo-Keynesian
economics, whatever that means except for bigger government, and has been given
a special certificate from the “Peace-loving” Swedes
to spread their Neo-Marxism. This majestic
endorsement brightens the view of the New York skyline with shimmering glitter and
other illuminations driven by the fame and fortune of the Nobel Prize.
Today, Paul Krugman
guides us through the economic mysteries of the US deficit
The First Lesson:
“These days it’s hard to pick up a newspaper or turn on a
news program without encountering stern warnings about the federal budget
deficit. The deficit threatens economic recovery, we’re told; it puts American
economic stability at risk; it will undermine our influence in the world. These
claims generally aren’t stated as opinions, as views held by some analysts but
disputed by others. Instead, they’re reported as if they were facts, plain and simple.”--Fiscal
Scare Tactics By Paul Krugman Op-Ed Columnist Published: February
4, 2010 [Emphasis is mine in all quotes.]
“Yet
they aren’t facts.”--Fiscal
Scare Tactics
This kind of statement thus opens the doors for a fine lecture on economics and government spending with examples of how other governments spent more than say 100% of their GDP [our current GDP is $14.46 trillions so 14 trillion in national debt to be spent by 2011 is essentially 100% of our GDP.] and crashed in defaults, depressions and worse. In the new book This Time is Different: Eight Centuries of Financial Folly by Carmen M. Reinhart and Kenneth Rogoff we find dire warnings about sovereign debt, financial crises and lengthy and tearful repayment schedules for those who spend too much.
We await a solemn and sound explanation why these fears are not facts:
“Many
economists take a much calmer view of budget deficits than anything you’ll see
on TV. Nor do investors seem unduly concerned: U.S. government bonds
continue to find ready buyers, even at historically low interest rates. The long-run budget outlook is problematic, but short-term
deficits aren’t — and even the long-term outlook is much less frightening than
the public is being led to believe.”--Fiscal Scare Tactics
Why is
this short term? There is no history of Congress authorizing paying off
the debt for the last 30 years and only one instance of paying off the interest
and that was only in one year where Republican control of Congressed indirectly forced Clinton do something with
the surplus. He refused to refund the surplus. I wonder if Krugman is aware
that his comments about Spain being a problem have riled some
in Europe?
Krugman
ignores the cost of Credit
default swaps (CDS) for countries who have poor credit ratings and seems to be
blissfully unaware that if the US loses its AAA rating then our CDS will soar
and the interest rates will follow.
If bond
sales are in any way related to ratings then why is Moody’s threatening to
lower the US rating from AAA?
He mumbles on:
“True,
there is a longer-term budget problem. Even a full economic recovery wouldn’t
balance the budget, and it probably wouldn’t even reduce the deficit to a
permanently sustainable level. So once the economic crisis is past, the U.S. government will have
to increase its revenue and control its costs. And in the long run there’s no way to make the
budget math work unless something is done about health care costs.”--Fiscal
Scare Tactics
The
agenda for leftist spending includes some trillion on health care, 600 bln on
cap and trade taxes and other follies and there is no known plan for cutting
spending on anything but defense. Social
Security and Medicare, a mere 50 trillion in more debt is omitted from
discussion here.
The phony Obama ‘freeze on
spending:’
“President Barack Obama on Wednesday acknowledged
his proposed spending freeze would not "dig us out" of the country's
trillion dollar deficit "overnight," but he said it would at least
cover "whatever happened on my watch."-- Pres. Obama: Spending freeze will address Dems' contribution to deficit
By Tony Romm- 02/03/10 11:22 AM.
The Diversion of Phony Little Numbers for the cognitively
disnimble to chew on:
He promises not to
spend 0.25 trillion against three years of 1.5 trillion in deficits [ .25/4.5
is 5.5% and is about 5 trillion short of recouping the spending of this leftist
parasite] and we can wonder how this will cover
"whatever happened
on my watch” when he hiked the national debt 40%. This is a fairly bold lie even for a
progressive, an
ideological racist,
a proven liar
and a Marxian advocate or perhaps even a simple stooge
and we might predict this from his
repulsive and lengthy associations with Jeremiah Wright,
Van Jones,
Anita Dunn,
Andy Stern,
Harry Reid, Nancy Pelosi,
Barney Frank,
Chuck Schumer and others whose veracity indexes are negative or imaginary.
No panic?
“But there’s no reason to panic about
budget prospects for the next few years, or even for the next decade. Consider, for example, what the latest budget proposal
from the Obama administration says about interest payments on federal debt;
according to the projections, a decade from now they’ll have risen to 3.5
percent of G.D.P. How scary is that? It’s
about the same as interest costs under the first President Bush.
Why, then, all the hysteria? The answer is politics.”--Fiscal Scare Tactics
It would
require quite a leap of faith to even consider believing Krugman on this matter much more
before taking him at his word on this statement. There is too much socialism at
stake here for more truth to prevent a gigantic leap in government size and
power.
“The
trouble, however, is that it’s apparently hard for many people to tell the
difference between cynical posturing and serious economic argument. And that is
having tragic consequences.”--Fiscal Scare Tactics
I just said that in
other terms.
Now in California and New
York, cesspools of boiling caustic taxes, we
find a rush to escape default and the US seems
to wander the ether oblivious that Greece and Spain are on
the verge of default and their credit ratings are in the loo. Apparently debt
has some different connotation across the pond.
With Krugman it is always tax and spend or, to be novel, spend and then tax and for him this is not cynical
posturing.
rycK
Comments
to: ryckki@gmail.com
The Old Brown Lady of the New York
Times [Old Gray
Lady] Mumbles Dootifully about the Criminal Good Time Charlie Rangel
http://rycksrationalizations.blogtownhall.com/2009/10/08/the_old_brown_lady_of_the_new_york_times_[old_gray_lady]_mumbles_dootifully_about_the_criminal_good_time_charlie_rangel.thtml
Krugman Calls for More Stimulus.
What Else is New?? More Debt and Bigger Government and a Bigger Depression!
Marxists who greedily savor the
rewards from the sale of explosives and the invested proceeds from 175
continuous years of ‘neutrality’ while selling guns to all belligerents in
numerous wars. They were always comfortable with Tojo, Hitler, Franco,
Mussolini, Stalin, FDR, Shaw of Iran, Castro, Ho, Mao and Churchill as long as
hard money was placed on the drum. They are social parasites. Their phony Noble Prizes are
ignoble and simple political bribes to leftist operatives who share their
shameful beliefs in economics.
“In his first sermon after September 11th, 2001, Reverend Wright said the U.S. had brought on the
attacks with its own terrorism.”
“We bombed Hiroshima, we bombed Nagasaki, and we nuked far
more than the thousands in New York and the Pentagon
and we never batted an eye. We have supported state terrorism against the Palestinians
and black South Africans, and now we are indignant?! Because the stuff we have
done overseas is not brought back into our front yard? Americans chickens are coming
home to roost.” --Rev. Dr. Jeremiah A. Wright, Jr. http://www.cnn.com/2008/POLITICS/03/14/obama.minister/index.html
Copulating with Coprolites: The
Unveiled Mechanism of Governance by Progressive Liberalism in California