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Debt, Spending, & Keynesian Foolishness
#46
WOW! WOW! WOW! ... WWWOOOWWW! ... the even the F'ED' is rebuffing Krugman-Obama Keynesianism!!

I think the main reason for the good Dr. Krugman's ... (and his client's) dismay is a complete failure to understand the nature of debt. Back in Keynes day, our current level of debt (particularly unsecured consumer debt) was completely unheard of. What creditor in their right mind would plop $20,000 in the lap of an unemployed dropout for big screen TV and IPOD purchases?? (let alone $500k for a house) And yet we've managed to create the biggest rat hole in human history. Obama could ship $1000 checks to every soul in the nation ... and it probably wouldn't increase the velocity of money one iota. Those that have cash would stuff it under the mattress. Those with debt would probably tend to pay it off ... and some fraction would spend it in Vegas and then go back to food stamps. In any case, the momentum would be quickly attenuated ... one transaction, maybe two ... then bang ... either put away to mold or down the rat hole ... or more appropriately the black hole of debt service ... doesn't stimulate a need to replenish inventories, doesn't act as a capital investment in tooling or infrastructure ... doesn't do nuthin ... but move a digit or two from one account to another. People like Dave Ramsey have to drive Krugman nuts. He's an anti-Keynsian on the individual level. Interesting to watch his show ... but it pretty much gets repetitive. Same story ... different names ... night after night ... but it's still a pretty good story. Kill your debt. Pay yourself first ... I'm sure it makes the good PhDoctor of Debt froth profusely. :twisted:

The forecast calls for a period of prolonged Jimmy Carter style suck ... and Krugman better get used to it cuz there's not a dang thing that he or his pals in the White House can do about it. They may want to inflate their way out of trouble, but until people start actually making actual REAL transactions of their own free will all the ink and paper in the world doesn't mean a darned thing. Again, that's what get's Krugman's goat ... because his world runs off transactions ... and in a depression people either avoid making them or they avoid making them using government notes and that sort of thing does for government as Preparation H does for 'roids.
"Democracy is the theory that the common people know what they want and deserve to get it good and hard."
-- Henry Mencken
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[No subject] - by Palladin - 03-07-2010, 09:34 AM
[No subject] - by Gunnen4u - 03-11-2010, 07:27 PM
[No subject] - by John L - 03-11-2010, 08:09 PM
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[No subject] - by John L - 06-03-2010, 04:27 PM
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[No subject] - by Fredledingue - 06-06-2010, 05:15 PM
[No subject] - by TheMan - 06-07-2010, 03:40 AM
[No subject] - by WmLambert - 06-08-2010, 08:16 PM
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[No subject] - by Huh...What? - 07-09-2010, 11:34 AM
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[No subject] - by John L - 08-05-2010, 12:36 AM
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[No subject] - by mr_yak - 10-26-2010, 12:38 AM
[No subject] - by mr_yak - 10-26-2010, 12:38 AM
[No subject] - by John L - 10-26-2010, 01:36 AM
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[No subject] - by Brooklyn - 10-26-2010, 01:04 PM
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[No subject] - by mr_yak - 10-26-2010, 11:11 PM
[No subject] - by quadrat - 10-29-2010, 09:26 PM
[No subject] - by John L - 11-24-2010, 04:00 PM
[No subject] - by John L - 12-08-2010, 08:35 PM
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[No subject] - by John L - 01-31-2011, 10:44 AM
[No subject] - by WmLambert - 01-31-2011, 12:39 PM
[No subject] - by John L - 04-15-2011, 04:38 PM
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