In reading Paul Krugman's column today -- his usual political screed about Good Democrats and Bad Republicans (as opposed to Bad Republicans AND Democrats) -- I am struck by the utter ho-hum attitude Krugman has toward the gargantuan U.S. Government debt. To him, the issue is purely political, and there is no danger in stacking on more debt and printing more money.
Instead, Krugman continues to excoriate anyone who might think that the government with its policies of "Quantitative Easing" (called expanding the monetary base even more) and heavy borrowing are not leading our economy into disaster. And, while he praises efforts of the government to drive down the value of the dollar (yes, it temporarily makes U.S. exports cheaper abroad), he claims there is no downside to policies of monetary debasement.
Jim Rogers, the legendary investor, would beg to differ. No, Rogers does not have an economics doctorate from MIT, nor does he have a Nobel Prize in hand or a column in the NY Times. But Jim Rogers knows markets and he knows currencies and he believes that the government is pushing us into an even greater crisis than what we experienced in 2008.
In this recent interview on Russia Today, Rogers states that for all of the rhetoric we hear in Washington, no one seriously is dealing with the crisis. The Democrats have been off the charts, and Republicans are delusional about the state of U.S. military spending. I believe the man has some wise things to say, even if U.S. policy makers and people like Krugman stop up their ears with "Na, na, I can't HEAR you!"