Krugman's very very simple solution to end this depression

[CrusaderFrank]

Yes, yes they do. They actually think that devaluing the currency by continuous monetary inflation will fix the economy. I really do not know how they come to this conclusion. It takes a lot of acid to make this kind of sense.

If you stand on your head and close your eyes you start to see things their way

 

[ilia25]

So, according to Krugman and Obama, the economy is suffering because the deficit is not big enough.

Is that about right?

Not quite. The economy is suffering because the government spending is not big enough.

We're already running a 1.3 trillion dollar deficit. How much more spending should the govt. do to get the economy out of suffering?

15 trillion? 100 trillion?

Don't be silly. An increase in spending by one trillion should be more than enough to quickly end this depression.

And that is a small price considering that the depression already added around 5 trillions to federal debt.

 

[CrusaderFrank]

Not quite. The economy is suffering because the government spending is not big enough.

We're already running a 1.3 trillion dollar deficit. How much more spending should the govt. do to get the economy out of suffering?

15 trillion? 100 trillion?

Don't be silly. An increase in spending by one trillion should be more than enough to quickly end this depression.

And that is a small price considering that the depression already added around 5 trillions to federal debt.

What type of acid are you and Krugman taking?

We need more government "Not so Shovel ready" Solyandra projects to rescue the economy?

 

[TakeAStepBack]

So 800 billion didnt work, but another trillion should get us back into shape?

Seriously, what exact do you think si the problem with our economy currently? That there isn't enough money in rotation?

 

[TakeAStepBack]

We're already running a 1.3 trillion dollar deficit. How much more spending should the govt. do to get the economy out of suffering?

15 trillion? 100 trillion?

Don't be silly. An increase in spending by one trillion should be more than enough to quickly end this depression.

And that is a small price considering that the depression already added around 5 trillions to federal debt.

What type of acid are you and Krugman taking?

We need more government "Not so Shovel ready" Solyandra projects to rescue the economy?

If I had to guess it would be the leftover brown from Woodstock. Seriously, I don't know whether to laugh or to cry. People have really gone ove rthe edge in economic understanding.

 

[ilia25]

So, according to Krugman and Obama, the economy is suffering because the deficit is not big enough.

Is that about right?

Not quite. The economy is suffering because the government spending is not big enough.

You know we're running a deficit right now, right?

If we spend more useless government money do you expect us to magically turn a surplus?

Yes, and there is nothing magical about it. I explained how it would work a few times in this thread alone -- everyone's income is some one else's spending, and so on.

 

[TakeAStepBack]

OMG. I can't even bare to read this anymore. Good luck with that idea.

 

[ilia25]

So, currency devaluation keeps real wages intact! Now I get it!

That silly trick you trolls are using -- replace one concept by a different, but related one.

Monetary growth is not the same thing as currency devaluation. An increase in spending is not the same thing as an increase in deficits. And so on -- this is how play your silly games by playing dumb.

 

[CrusaderFrank]

Not quite. The economy is suffering because the government spending is not big enough.

You know we're running a deficit right now, right?

If we spend more useless government money do you expect us to magically turn a surplus?

Yes, and there is nothing magical about it. I explained how it would work a few times in this thread alone -- everyone's income is some one else's spending, and so on.

There's no difference between government spending and private sector spending? Really?

The government can just hire every American as a Czar and we'd be as prosperous as --- North Korea.

 

[ilia25]

So 800 billion didnt work, but another trillion should get us back into shape?

Only it wasn't 800, it was more like 300 over 2 years. We need 3 times bigger increase.

 

[CrusaderFrank]

So 800 billion didnt work, but another trillion should get us back into shape?

Only it wasn't 800, it was more like 300 over 2 years. We need 3 times bigger increase.

The Stimulus Failed! We need More Stimulus!!

 

[TakeAStepBack]

Monetary inflation absolutely causes currency devaluation. Not to be confused with money, currency is simply a receipt for money. Which is a store of value. If you take away the store of value, which we have, all you have left are receipts good only in confidence of the producers of the receipts. In this case, govt (like almost all fiat currency in history). The more of them they "print", the more in rotation and the less they are worth.

Increasing spending, being that we are already borrowing money, on interest, to spend, would mean that in order for govt. to spend, they need to borrow that money, on interest. This is artificial demand for both currency and products. And it ends with us right back here saying we nned to inject, yet again, more money. This is beyond ridiculous as a fiscal policy for any home, or any government. Government must cut its spending severely to match its revenue and then get the fuck out of the way and allow the producers to create wealth again. At least before the fed steps in and inflates that wealth away.

You know, savings. I know, I know. What a concept!!

 

[ilia25]

Yes, yes they do. They actually think that devaluing the currency by continuous monetary inflation will fix the economy. I really do not know how they come to this conclusion.

Yet it was explained you in the terms an elementary school student would understand. But playing dumb is what you trolls do.

 

[ilia25]

You know we're running a deficit right now, right?

If we spend more useless government money do you expect us to magically turn a surplus?

Yes, and there is nothing magical about it. I explained how it would work a few times in this thread alone -- everyone's income is some one else's spending, and so on.

There's no difference between government spending and private sector spending? Really?

The government can just hire every American as a Czar and we'd be as prosperous as --- North Korea.

Stimulating the economy only helps when the economy is depressed. Such a novel concept, if only you were able to get it!

 

[expat_panama]

The economy could not and did not notice a 2% change in federal spending.

...how about a 2.01% cut? 3%? 30%?

Any cut in goverment spending harms a depressed economy. Small cuts have little effect. Big cuts create a disaster.

Wonderful! As long as we're subjectively making this up as we go along, let's say 40% is a 'small' cut. Either that or we could get serious and see what actually happens in real life.

In 1946 the GDP shrank 12%. Far worse than today's performance. That year we cut spending by 40% over the past year and approved a budget cutting it another 40%. The GDP soared bringing in decades of prosperity.

40% is a small cut then.

 

[The Rabbi]

So, according to Krugman and Obama, the economy is suffering because the deficit is not big enough.

Is that about right?

We have to keep spending money to keep from going broke.
Didn't you heed Joe Biden?

 

[CrusaderFrank]

Yes, and there is nothing magical about it. I explained how it would work a few times in this thread alone -- everyone's income is some one else's spending, and so on.

There's no difference between government spending and private sector spending? Really?

The government can just hire every American as a Czar and we'd be as prosperous as --- North Korea.

Stimulating the economy only helps when the economy is depressed. Such a novel concept, if only you were able to get it!

FDR's Stimulus lead to an economy worse than the 7 Biblical Lean Years

Harding, Coolidge and Mellon passed on government stimulus, let the economy reprice and unemployment dropped from 12% to 2% in 2 1/2 year

Tell me again what works?

 

[Dante]

He says very very clearly in his book that the government should spend money exactly like it did when WW II started to end this current depression the way it ended the Great Depression.

Does any liberal dare to think that by producing about 100 million planes tanks ships heavy weapons and tanks that it would help rather than hurt our economy??

Krugman is a Nobel liberal but not a soul will dare defend the pure stupidity of his liberalism which is now everyone's liberalism.

Krugman is great because he's the best they got and even the common liberal knows in his heart that Krugman is a liberal and so that liberalism is nutty.

note to visitors and newbies: the above: rantings and ravings of a right wing lunatic on public display

 

[The Rabbi]

So, currency devaluation keeps real wages intact! Now I get it!

That silly trick you trolls are using -- replace one concept by a different, but related one.

Monetary growth is not the same thing as currency devaluation. An increase in spending is not the same thing as an increase in deficits. And so on -- this is how play your silly games by playing dumb.

True. But monetary growth leads to currency devaluation. One causes the other.
If you increase spending when we are running a deficit already then by definition you must increase the deficit too.
Are you really this stupid in real life?

 

[Widdekind]

So 800 billion didnt work, but another trillion should get us back into shape?

The Stimulus Failed! We need More Stimulus!!

if "the" stimulus failed, then money was mis-spent, in-appropriately. That does not mean, that "all" Fiscal stimuli must fail -- anymore than "all" money must be mis-spent.

analogies are distracting. But, just because you "swing and miss" in baseball once, does not mean that "swinging at the ball" is automatically bad -- only flailing blindly at the ball. A sound swing could hit a home-run.