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Telegraph:Why the NY Times’s Paul Krugman is Clueless About the European Economic Crisis

By Nile Gardiner | Telegraph

"...New York Times columnist Paul Krugman’s latest piece “Death of a Fairy Tale” is yet another rant against austerity measures in Europe, especially in Britain. Such measures, he argues, would be disastrous for the United States, even though the world’s superpower is now more than $15 trillion in debt, with the highest deficits since World War Two. Krugman has consistently argued for a big government approach towards America’s economic problems – greater stimulus spending, higher taxes, and more bailouts.

The Nobel prize-winning economist’s article is highly misleading in its claim that austerity is the cause of Europe’s economic woes today, an assertion that is not backed up by any evidence..."

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Can Someone Explain to Me

...how piling on debt, raising taxes and the government spending over 5 trillion dollars in less than 4 years improves the economy? If we, as American citizens, ran up insurmountable debt, lost our jobs and had to pay higher taxes, would we be claiming "we're on the road to recovery?" In all likelihood, we would be heading to bankruptcy court.

Paul Krugman, Ben Bernanke, Alan Greenspan aren't all that smart. If they were, the America would be the leader of the world instead of the largest debtor nation in the history of the world.

The United States is 16 trillion in debt that we know about, 16 trillion in debt that we didn't know about and approximately 80 trillion in debt through unfunded liabilities (we have to guess because we can't get the actual totals). How does 112 trillion in debt make a nation prosperous? Simply, it doesn't.

We have to stop the establishment from promoting Romney. Romney is no different than Obama, or Bush before him. Electing Dr. Paul is the only way we still have to fight for a chance of securing our nation's promise for our children and grandchildren. The time is fast approaching, all of us have a decision to make. I pray we make the right decision.

Savings.

Krugman rants about confidence in the economy but makes no mention of savings...

Apparently economic analysis no longer takes into account the other half of the equation.

I'm not very smart....

But if the solution to our problems is just printing and taxing and spending more money, why don't we issue money printers to everyone?

I mean, if everyone could print say a million dollars a day, and go out and spend it, think of the boom we would have!!!

Now maybe Krugman would say that is ridiculous - it is too much money. But then what is the right amount to spend, and how is that decided?

Only special people get to decide how much debt we need?

once in a while i try to buy stuff

with monopoly money. i really need a spy cam, the look on peoples faces is priceless. creates a teachable moment when i apologize for confusing it with federal reserve notes. how clear the absurdity is in one instance yet not the other baffles me.

of course parker brothers doesn't have the benefit of the USMC.

"The two weakest arguments for any issue on the House floor are moral and constitutional"
Ron Paul

Haha. He's way off about the

Haha. He's way off about the Netherlands. And this guy is at Princeton you say?

Our government did fall, and yes, it was (technically) over austerity. But the real reason was mr. Geert Wilders (imagine a neo-con, subtract some IQ points, add some Mussolini, stir mildly and leave out in the sun for a couple of months) who is now visiting the US by the way.

Only two days after a broad coalition (progressives and liberals) reached an agreement on austerity measures that's probably the framework for the next government (elections sept 12th). Wilders is the big loser. It's not a good budget plan, but it makes serious cuts. It's just they do it to fulfil the European rules that limit deficit spending to 3%. So the commitment is still very much with the EU.

Anyway the political battle here isn't about austerity, it's other issues like immigration, crime and the EU that drive the debate. At least on the street they do, our politicians still have a huge blind spot for anything to do with Europe. It's just not open for debate. Wilders is the only one talking about it and it harms the debate. I am very anti-EU, it's undemocratic and not a free market, but I will never associate myself with the likes of him.

Krugman is one of the intellectual idiots we were talking about the other day. Just compare the Netherlands and Germany (fiscally conservative-ish) to Spain and Greece (whatever they are).

Comparing Spain to Latvia is nonsensical from every angle. There's no comparison between the two.

"The main reason why many of the largest economies in Europe are in trouble is the lack of economic freedom, and not because of any lack of state intervention. Europe has been dominated by big government for decades – suffocating business regulations, sky high taxes, mounting red tape from Brussels, and ever-rising levels of public spending needed to pay for vast welfare states and entitlement systems."

The Telegraph gets it absolutely right here. Income tax at 50%, 20% VAT anyone? They raise all that tax and still the welfare and entitlement systems get butchered year upon year. In our country we've essentially been cutting welfare and entitlements since the early 80's and the cost still rises. I grew up with this system, so I understand the idealism behind it somewhat.. but it's just economically untenable.

Re: Princeton

Woodrow Wilson was the President of Princeton. Need I say more?

This is easily the best article from the British media

I have read in a long time.

Wow

Well, the Nobel Prize has really gone down the toilet. Obama and Krugman? Seriously?

Looks like

Looks like a new peace prize is needed. Wouldn't it be great if someone in our movement invented one? We know the awards would be legitimate...but would they get any press, is the question. :-)

Al Gore

Al Gore

Immoral funding of Military Industrial Complex by Federal Reserve and US taxation system must stop!!!! End illegal/unconstitutional wars! Preserve US currency!
http://facebook.com/NoPropagandaZone
http://twitter.com/the_chiefe71

Oh yeah

Good call.

Reserve dollar.. or Petro dollar?

It may be that our obsession with demonizing arabs/persians in the middle east has more to do with protecting our dollar then their religion. Saddam and Qaddafi made noises about oil for gold not dollars. No one would hold dollars or take our debt except they can buy oil with it.
Qaddafi went so far as to discuss a Gold Dinar for Libya. Imagine selling oil and the money they received didn't depreciate day by day.

Why are we pushing Syria into a box? Is it to justify eventual destruction of the Iranian grid, too? Amazing how dense many still are about money and how it can be manipulated by politicians.

And the Debate is spreading into the MSM....

This is outstanding.

We are growing ever closer to a tipping point. When people realize that Ron Paul was correct all along, there will be a massive epiphany.

Tricks and treachery are the practice of fools, that don't have brains enough to be honest. - Ben Franklin

Epiphany

Not sure they will be told what causes our next tipping point. Most are government schooled kids now.

There is no such thing as a

There is no such thing as a "Nobel Prize in Economics". The award is called the "Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel". The Sveriges Riksbank is the Central Bank of Sweden. What a surprise that a central bank would honor an inflationist.

And Krugman's prize was "for his analysis of trade patterns and location of economic activity", NOT for ANYTHING to do with government spending.

The Telegraph should have stopped the headline here.

"Why the New York Times’s Paul Krugman is clueless"

Klugman is as clueless as he

Klugman is as clueless as he looks.

Resist the temptation to feed the trolls.

I almost wish all the

I almost wish all the Keynesian nuts would get their way so we can finally once and for all have recorded proof that massive debts and money printing lead to economic collapse.

Let them print zillions of dollars and Euros, accrue massive debts that cannot be paid back so the world can watch their crazy science experiment blow up in their faces.

I mean, for how many years are we going to continue having this ridiculous debate?

Not long...

I think that the powers that be know the collapse is coming and they're just trying to milk the ponzi scheme for as long as possible. Lying to us consistently is important since our entire monetary system only works subjectively. Once they suck our economy dry, they'll disappear overseas to their multi-million dollar compounds and laugh all day.

NOTE: I am not advocating violence in any way. The content of the post is for intellectual, theoretical, and philosophical discussion. FEDS, please don't come to my house.

Better than a collapse...

...would be the mass realization that the current monetary is flawed and must change...now!

That would end TPTB reign peacefully.

Tricks and treachery are the practice of fools, that don't have brains enough to be honest. - Ben Franklin

Cute

Cute note at bottom.. remember when the Germans feared a knock at the door? Well, we don't have to fear that.. they don't knock anymore. The raids happen at dawn. One agent goes to the back door so if they knock, he answers "Come in" for the audio recording. If you hear a dog bark it won't be for long-- shooting dog is SOP>

reedr3v's picture

It is good to read through the comment

section following the article.

Magical Thinking

I'm pretty sure Krugman believes that to change the economy, one must mandate the change, and the result will be the intended change.

When he sees a result, he looks to the most recent mandate, and blames that for the change, rather than the real causes which occurred further back in a sequence of cause/effect events and actions by multiple players.

He needs to play chess against multiple players, and after some more brain development, take another look at the evidence.

What do you think? http://consequeries.com/

Agree...

Krugman is what America is turning into. Our education system leaves logical thought and analysis, promlem-solving, and critical thinking by the wayside in lieu of memorizing facts and figures for multiple choice tests. The result is smart kids never get the factual background they need and we reward those who are good at rote memorization but don't understand how to apply the concepts to the real world.

NOTE: I am not advocating violence in any way. The content of the post is for intellectual, theoretical, and philosophical discussion. FEDS, please don't come to my house.

i heard the interview...

sounds to me like he's been messing around with that do-it-yourself home lobotomy kit again.....

song

ron in 12!

I'd Rather Have a Bottle in Front of Me...

...Than a Frontal Lobotomy !!!

LOL!

"Beyond the blackened skyline, beyond the smoky rain, dreams never turned to ashes up until.........
...Everything CHANGED !!