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Krugman: Only "Wingnuts" Are Worried About Inflation

Submitted by Cahnman on Fri, 05/29/2009 - 21:50
in

I know I shouldn't care what someone who has been so consistenly wrong about economics thinks (and before you peddlers of revisionist haterade chime in saying Krugman predicted the current crisis -- if you predict a recession every 2 months for a decade, you'll eventually be right.  Krugman's analysis of the current situation is so absurd its laughable).  That said, Paul Krugman doesn't think we should be worried worry about inflation.  Money quote:

Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.

Riiiiiiiiiiiight, so the second there's a hint of economic recovery we're not going to see a "butt"load of inflation?!?  I guess Krugman hasn't seen what's happened with Gas Prices the past month....

I'll file this in the laughable Krugman predictions file, right next to his 2003 recession call.

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Krugman gets you mad, but he's simply talkin economics

Submitted by skayne on Fri, 05/29/2009 - 23:12.

It's funny how people like you who don't have a tenth of the knowledge of Paul Krugman challenge his assesments. Somehow you can challenge a guy with a Nobel Prize in economics. 

Have you even read that link? He was so right about so many things in that interview it wasn't even funny, not to mention how he called complete BS on everything the Bush administration was doing for years and was vindicated.

Just like people on the right were claiming the US wasn't in a recession during 2008 because of the so called GDP growth, it turns out that we've been in a recession since late 2007. That's after it's been revealed how much the financial industry was cooking the books. Krugman specifically explains how GDP estimates flatlined while reported profits rose some 40%. He called BS on these companies and was right on the money in this interview.

When he's saying we're essentially in recession, he's talking the real economy. That's things like industrial production, imports and exports, and the unemployment numbers. All those things were flatlining or falling while you were seduced by the shiny jewel of rising stock market prices.

Krugman criticized the Bush admininstration constantly because of economic hocum, not because he's a liberal. You would think conservatives would realize that as he's been mostly criticizing the Obama administration as well. He's an economist with integrity.

Maybe consumers know about the "real economy, too"

Submitted by Ironman on Sat, 05/30/2009 - 07:11.

Anytime anyone criticised Krugman, we get the Nobel prize brought out. Sadly, this is a ruse. Sometimes Paul is "an economist with integrity" Othertimes, he's  a shill for the Obama camp.

I leave you with this e-mail I got from a friend suggesting that what Krugman claims isn't a problem is already occurring

,The professor obviously doesn't buy beer, peanut butter,>     electricity, car insurance, gasoline, or any of the things the>     rest of us mere mortals use to run our lives... 

One thing I'm getting very concerned about is that the Obama camp, having used the apocalypse to sell their trillion dollar spending spree, now needs to show results. And Skayne, the government can;t cook books to make it look like things are improving, now can they?   Already folks are thinking this is all hokum.

Hey, no one in Oslo called me up to give me an award. But I do know the USD is dropping like a stone on the FOREX markets and the Mobil down the street is up to $2.56/ gallon. Maybe I ought to dust off that old Milton Friedman book about inflation always being a monetary phenenemom. He won some prize, too, didn't he?  

 

What inflation?

Submitted by skayne on Sat, 05/30/2009 - 07:26.

What,  you didn't know that OPEC met a few months ago to scale back the supply of oil? That's why the price is rising.

How does your link prove he's shilling for Obama? Like I said, you people can't deal with the reality that he correctly killed Bush for 8 years on his economic drivel. He was vindicated.

Now, while he agrees with some of the things Obama's done, it's been mostly criticism. You people don't care, you're just mad he correctly destroyed Bush economic policy. You can't let go of the grudge.

Prices are still falling. What inflation are you talking about? What in either of your links proves your so-called point?

Maybe nobody called you in Oslo because you don't know more than Paul Krugman. Just a suggestion.

Who knows who is right...

Submitted by davidfarrar on Sat, 05/30/2009 - 06:38.

...not us little people, that's for sure. Does anybody know how a common citizen can find out just how much Monopoly money the Fed has been printing for the past year? I think it is called the M3 figure.

This is exactly why it is so important to support the call for a forensic audit of the whole Federal Reserve system. Only Congress can call for it, and only you can call your Congresswomen/men.

Click the gif above to find your Congressional representatives

Support H.R. 1207 & S. 604

 

          ex animo

          davidfarrar

Economic Situation

Submitted by MaxD on Sat, 05/30/2009 - 05:06.

The government’s tax policies may be a burden to people especially those affected by the ongoing recession and economic meltdown. But if we know how to manage our money and loans, we can fix almost everything. Financial planning may help us, although it goes a long way. You're never too young or too old to start financial planning. If you start putting a little into savings on a regular basis and start doing a little budgeting, it can pay off. Laying off the credit cards will help the personal finances out tremendously. Watching your spending is a great idea, and being cautious and avoiding overdraft charges can keep you out of needing any online payday loans or faxless payday loans. Credit spending is what leads a lot of people into debt, and it's better to avoid needing payday loans all the time with a little financial planning.