tag:blogger.com,1999:blog-6276561747841568697.post431516926235338632..comments2024-03-27T05:23:48.855-04:00Comments on Krugman-in-Wonderland: Krugman: We Need a Debt Fairy to Accompany the Inflation FairyWilliam L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger30125tag:blogger.com,1999:blog-6276561747841568697.post-18507678208320920292024-02-18T04:12:13.646-05:002024-02-18T04:12:13.646-05:00very much informative post. thanky youu!!!very much informative post. thanky youu!!!edwardsrailcar.comhttps://edwardsrailcar.comnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-13841034967811429202024-02-18T04:11:17.623-05:002024-02-18T04:11:17.623-05:00Thanks to sharing with us !!!!!!Thanks to sharing with us !!!!!!slotplayground.comhttps://www.slotplayground.comnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-48827760674636630292024-02-18T04:09:46.597-05:002024-02-18T04:09:46.597-05:00This is so much hilarious blog, thank youThis is so much hilarious blog, thank you19guide03.comhttps://www.19guide03.comnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-6141799179230334962024-02-18T04:06:09.413-05:002024-02-18T04:06:09.413-05:00Hi! this is often nice article you shared with gre...Hi! this is often nice article you shared with great information.gostopsite.comhttps://www.gostopsite.comnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-54718878348324268962024-02-18T04:05:21.723-05:002024-02-18T04:05:21.723-05:00Your writing is impressive. thank youYour writing is impressive. thank you카지노사이트https://www.outlookindia.com/outlook-spotlight/2023년-한국을-대표하는-카지노-사이트-best-10--news-326663noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-82386545629816945952013-05-07T10:23:30.521-04:002013-05-07T10:23:30.521-04:00Why does the fairy dust have to be spread around e...Why does the fairy dust have to be spread around evenly to all? Why not have it spent specifically on things essential to the long-term health of the economy, like infrastructure, R&D and training? I certainly don't see the private sector biting at the bit to do that. How much has research into physics benefitted the economy, and how much of that was/is paid for with private funds? More normally, the private sector whines about needing things like better roads and better trained workers so it can be more competetive. Of course, it want government to build the roads and training centers. Have your cake and eat it too! The biggest hypocrites are those who feign objectiveness only to state subjective "truths".Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-40349709351641720642013-04-20T22:55:40.244-04:002013-04-20T22:55:40.244-04:00Okay, so what happened was that prices of a commod...Okay, so what happened was that prices of a commodity become over valued. That Commodity ( whatever it is ) is not worth as much as what everyone believes it is ( typically stocks, but could be gold, silver, bitcoin, etc ) in the last case housing and the over leveraging and packaging or mortgage backed securities.<br /><br />What occurs is a drop in value, people lose money, typically the price over corrects to be undervalued, repeat with next fad...<br /><br />Now the difference between Keynesian ( I actually doubt Keynes would approve of Krugman ) and Austrian philosophy on this issue is the Austrian see this as a short term correction to be born out, the Keynesian attempts to 'fix it'.<br /><br />TO me both sides are 'correct' as in the market WILL revive under either strategy.<br /><br />As for Austerity, (sigh) I agree with correcting a budget so that you are not deficit spending in times of plenty and by the same token you have a little wiggle room when times are bad to borrow. But this is very different from the inflationary pressures that we have seen from the Keynesian side of the argument.<br /><br />In the case of Greece and Spain, they are BAD DEBTORS they MUST enter austerity in order to obtain continued bank loans. Here is perhaps a better question for Krugman. Why would Austerity be a bad thing if the Government were not such a large portion of GDP in the first place?<br /><br />Another problem with comparing nations and economies is that the USA is huge...We are number three and by far the most diverse population. One of Krugman's favorite countries to talk about is Sweden. A country that is the same population of North Carolina... It is easy to create economic policies in a country the size of a medium state... Heck Even Canada has fewer people than California... California's GDP is what 1.9 Trillion? Canada's is $1.74?<br /><br />It is just difficult to compare and contrast nations that VARY SO MUCH. In culture and even economic conditions. I would also suggest that the reason they have as high a GDP in dollars versus the USA is because we have been devaluing our currency for the past decade.<br /><br />Look when Government is 40% of your economy it is going to hurt and slow down your economy to drop it. Half of the Greek Economy was Government Spending in 2008. Now it is 46.8%. Should you see a drop in the velocity of money when this occurs. YES!!! an Emphatic YES!!! You just dropped almost 4% off your Velocity of money. It should hurt like CRAZY. But why in the world would you allow Government Spending to get to that portion of your economy in the first place?<br /><br />Sorry... I am ranting now... Forresthttps://www.blogger.com/profile/04973896057074915704noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-80195912335182281992013-04-20T13:18:40.013-04:002013-04-20T13:18:40.013-04:00John, Krugman also wrote something about Austrian ...John, Krugman also wrote something about Austrian economics being highly influential in the GOP. He's clearly out of touch with reality on top of being a political operative as Professor Anderson has been saying all along.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-5450826429685905902013-04-20T13:01:33.150-04:002013-04-20T13:01:33.150-04:00I'm still trying to figure out why anyone woul...I'm still trying to figure out why anyone would consider an economics paper to be influentialJohn Dunhamhttp://guerrrillaeconomics.comnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-3568662486526423032013-04-19T22:12:26.783-04:002013-04-19T22:12:26.783-04:00Intellectual honesty flew out the window.
There. ...Intellectual honesty flew out the window.<br /><br />There. Fixed.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-83825724575950951182013-04-19T22:11:25.927-04:002013-04-19T22:11:25.927-04:00Frightening. Krugman's intellectual honest has...Frightening. Krugman's intellectual honest has flown out the window completely when you mentioned "The Debt Fairy." He'll then either retire from NYT and have his own business show at MSNBC or end up writing for <i>The Economist</i>, another propaganda rag that endorsed Obama twice!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-3184066772424063862013-04-19T18:37:40.730-04:002013-04-19T18:37:40.730-04:00Krugman doesn't take this seriously. He doesn...Krugman doesn't take this seriously. He doesn't. At some point he got it in his head that <br /><br />a) All history is revisionist history.<br />b) The "winner" is the most-believed revision.<br />c) If only a passionate advocate of the Good Revision would have the courage to take one of God's Children by the hand and say, "That stupid thing you believe? It's true!" why, then it might have a chance of <i>becoming</i> true.<br /><br />This is why he makes things up out of his ass. <br />This is why the invective, the casting as evil his opponents, the charts of debt when the argument is spending, the definition of the Reagan years as beginning just after Nixon and ending just before Clinton, and all of his other Googlibly falsifiable claims. (e.g.,"There is no correlation between regulation and unemployment.")<br /><br />This is not a man concerned with facts. This is a man concerned with keeping the congregants marching onward, eyes down, hearts up, and self-righteous in the lamest set of beliefs this side of ConfederateFlagVille, AR.Catohttp://www.cato.orgnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-13350868025514803142013-04-19T16:11:30.155-04:002013-04-19T16:11:30.155-04:00Real "austerity" in the sense of massive...Real "austerity" in the sense of massive tax and spending cuts leads to prosperity, fancy clothes, hot cars and great food. Nothing "austere" about it.<br /><br />Keynesian "stimulus" leads to permanent depression, misuse of resources and perpetual pricing distortions.Bob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-30632378321560507592013-04-19T16:00:23.054-04:002013-04-19T16:00:23.054-04:00Well, at least "austerity" and "sti...Well, at least "austerity" and "stimulus" tell you something abou the worldview of the people they are being used by. What would be normal money to you, Bob? Free market money, gold? Bitcoin?Edwardnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-28814795307928749142013-04-19T15:22:23.293-04:002013-04-19T15:22:23.293-04:00Edward said...
"funny money" A loaded t...<i>Edward said...<br />"funny money" A loaded term bob</i><br /><br />Oh my. So unlike terms such as "austerity" and "stimulus".Bob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-79955980509793981242013-04-19T14:50:54.349-04:002013-04-19T14:50:54.349-04:00"funny money"
A loaded term bob"funny money"<br /><br /><br />A loaded term bobEdwardnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-61096436351214260482013-04-19T13:41:46.261-04:002013-04-19T13:41:46.261-04:00Seeing people flipping houses at the rate they wer...<i>Seeing people flipping houses at the rate they were prior to 2008 and otherwise treating home equity like an ATM is a pretty darn good sign of a bubble. No good outcome is possible from this kind of activity.</i><br /><br /><br />"Sigh" or "Duh"Bob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-17326864522952101752013-04-19T13:26:08.568-04:002013-04-19T13:26:08.568-04:00Seeing people flipping houses at the rate they wer...Seeing people flipping houses at the rate they were prior to 2008 and otherwise treating home equity like an ATM is a pretty darn good sign of a bubble. No good outcome is possible from this kind of activity.Dennisnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-20808366891735982142013-04-19T13:13:15.092-04:002013-04-19T13:13:15.092-04:00(Sigh) do the austrians have an indicator where th...<i>(Sigh) do the austrians have an indicator where they can tell ex ante that a boom is "artificial" and "unsustainable'</i><br /><br />Anything purchased with a loan of funny money created out of nothing has been artificially bid up higher than it otherwise would have been. A normal person should be appalled <i>ab initio</i> at the unnatural benefit handed the borrower and the artificial price of the sale. Subsequently, when you see formerly $150,000 homes selling for $500,000 in funny money loans, it's a good bet that the process is unsustainable unless people actually have $500,000 worth of real goods and services to trade for such a house and are not seeking an "inflation hedge".Bob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-25781723781090924322013-04-19T12:30:12.774-04:002013-04-19T12:30:12.774-04:00Mark Thornton was on the record in 2004 with his a...Mark Thornton was on the record in 2004 with his article, "Housing: Too Good to be True." <br /><br />http://mises.org/daily/1533<br /><br />In 2006, while appealing a tax ruling on my house, I told the assessment board then that the current boom was unsustainable and specifically told them not to make future budget plans based on what they saw at the present. (They told me that I was wrong, and one remarked, "I don't see that happening.") And, yes, I had witnesses.<br /><br />In 2006 we have Peter Schiff's famous confrontation with Arthur Laffer on what was to come.<br /><br />So, I think Austrians did pretty well in that regard. Our emphasis was that it was not sustainable.William L. Andersonhttps://www.blogger.com/profile/01802990642236807359noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-7900747906150464942013-04-19T12:05:46.453-04:002013-04-19T12:05:46.453-04:00"Well, I think we safely can say that the las..."Well, I think we safely can say that the last boom was "unsustainable.""<br /><br />Can we? It would seem that hindsight helps a lot there Professor. :-)<br /><br />"Austrians do hold that if a boom is stimulated by loose credit, then it will run aground in the future.<br />"<br />"loose" and "tight" are relative terms. What Austrians think of as easy money, others think of as pathetically inadequate or even tight.<br /><br /><br />"No, we cannot pinpoint the exact second when the boom runs aground."<br /><br />No one can. I thinbk you misunderstood what I was trying to say. No one can pinpoint "the exact second" as it were. But is there an useful predictive indicator that you can watch during the boom that gives you a roough idea that the boom is false, and that it will end in ROUGHLY that amount of time? <br /><br /><br />Edwardnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-65348900861905465542013-04-19T11:53:51.643-04:002013-04-19T11:53:51.643-04:00I thought it was that Krugman and his followers we...I thought it was that Krugman and his followers were using inflation as the guide for the correct debt level. No inflation means we need to borrow more. It simply reinforce an oppinion of future prosperity without making any hard choices right now- just print more money. Of course this will be acceptable to whatever party owns the white house at the time. No emprical evidence needed - it's a political orgy of free spending programs for everyoneAnonymoushttps://www.blogger.com/profile/14370000550077555352noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-53183437254528065642013-04-19T11:49:24.448-04:002013-04-19T11:49:24.448-04:00Well, I think we safely can say that the last boom...Well, I think we safely can say that the last boom was "unsustainable." Austrians do hold that if a boom is stimulated by loose credit, then it will run aground in the future.<br /><br />No, we cannot pinpoint the exact second when the boom runs aground.William L. Andersonhttps://www.blogger.com/profile/01802990642236807359noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-74274649940211724142013-04-19T11:32:25.474-04:002013-04-19T11:32:25.474-04:00"yet it was the unsustainable boom that got u..."yet it was the unsustainable boom that got us into trouble in the first place."<br /><br />(Sigh) do the austrians have an indicator where they can tell ex ante that a boom is "artificial" and "unsustainable' if so, what is it? Government Debt? High Private debt relative to incomes? If not are we to take the mindless asssertions of "unsustainable" on faith?<br />Edwardnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-87669853269304829132013-04-19T09:47:49.870-04:002013-04-19T09:47:49.870-04:00In a comment to a blog post by Justin Fox on the H...In a comment to a blog post by Justin Fox on the Heardon/Ash/Pollin paper, sadowski@udel.edu writes:<br /><br /><i>"Well, right now the evidence would seem to support it: The U.S. is muddling through, while austerity measures have pushed Europe back into recession and most of Southern Europe into depression."<br /><br />Not to advocate austerity (on the contrary) but this is something of a misconception. General government spending has barely changed in the eurozone, falling from 51.2% to 49.3% as a percent of GDP from 2009 to 2012 whereas in the US it has undergone a much larger contraction falling from 44.2% to 40.6% of GDP over the same time period. (Via the IMF database.)<br /><br />Fiscal austerity has only been practiced in earnest in Greece, Ireland, Portugal and Spain. Take a look at Figure 15 for example:<br />http://www.imf.org/external/pubs/ft/fm/2012/02/pdf/fm1202.pdf<br />Other than the countries named above, only Slovakia has cut spending in discretionary terms more than than the US between 2009 and 2012 and only the Netherlands and Belgium have increased taxes in discretionary terms more. And Belgium, Finland and the Netherlands have not cut spending at all, and Finland, Germany and Slovakia have actually cut taxes.<br />So far, only five countries (out of 17) in the eurozone have not had a second or third recession since 2008: Austria, Estonia, Finland, Germany and Slovakia. But the real GDP of Austria, Finland and Germany contracted in 2012Q4, and based on the PMIs from the first three months of the year, Austria and Germany are very likely in a second recession (I can only guess about Finland).<br /><br />I believe the key to understanding why economic performance throughout the eurozone is so bad compared to the US, despite the US having actually done more fiscal austerity in aggregate, is monetary policy. For example, the ECB’s balance sheet only increased from 1.46 trillion euro in September 2008 to 2.65 trillion euro currently (about an 80% increase) whereas the Fed’s balance sheet has increased from $930 billion to $3.23 trillion over the same period (about a 250% increase). (Via the ECB and the Fed.)<br /><br />The US has done both far more fiscal austerity and far more QE than the eurozone.</i><br /><br />http://blogs.hbr.org/fox/2013/04/reinhart-rogoff-and-how-the-ma.html#comment-866364147<br /><br />It is a purposeful butchering of the English language to refer to 44.2% to 40.6% of GDP and 51.2% to 49.3% of GDP as “austerity”. <br />Bob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.com