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Krugman Suggests Germany Create A Bubble To Save The Euro

Paul Krugman is now suggesting that Germany needs a bubble to save the Euro. He wrote in response to the current problems in Europe:

"What could turn this dangerous situation around? The answer is fairly clear: policy makers would have to (a) do something to bring southern Europe’s borrowing costs down and (b) give Europe’s debtors the same kind of opportunity to export their way out of trouble that Germany received during the good years — that is, create a boom in Germany that mirrors the boom in southern Europe between 1999 and 2007."
http://www.nytimes.com/2012/07/30/opinion/krugman-crash-of-t...

So now Krugman is saying that Europe will be saved if the European Central Bank does in Germany the same thing it did in Greece, Ireland, Spain, and Portugal.

What happens when the German bubble collapses?

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reedr3v's picture

Of course. What else has Krugman ever

known?

Krugman is a one-trick phony.

I bet he is hopeing Germans do not remember Versailles

"The treaty of Versailles, under the terms of articles 231–248 (later known as the War Guilt clauses), to disarm, make substantial territorial concessions and pay heavy reparations to certain countries that had formed the Entente powers. In 1921 the total cost of these reparations was assessed at 132 billion Marks (then $31.4 billion or £6.6 billion, roughly equivalent to US $442 billion or UK £284 billion in 2012), a sum that many economists at the time, notably John Maynard Keynes, deemed to be excessive and counterproductive and would have taken Germany until 1988 to pay". Wiki

Karma, its a bitch. LOL

Krugman is very clever.

Evil clever, that is. He usually won't suggest these things outright. He usually quotes some other goon claiming the same nonsense then in a separate sentence writes, "Someone is on to something", or "I am not saying I agree but it would fix the problem". He is a slippery character. I suppose he is the last banker shill around to suggest this sort of nonsense anymore.

I am just mad that after all

I am just mad that after all this, normal citizens still believe this crap

Krugman's economic policy

could be compared to the method of putting out a fire by throwing more wood on it.

Zing!

+1

BUMP

BUMP !

Don't be foolish...

Germany or you will be on the same boat as the U.S. financially.

Localized collapses are much preferred to widespread collapse.