Reading time: 300 words, 1 minute
Bloomberg video: 20 minutes
In this debate between U.S. Congressman Ron Paul and New York Times columnist and professor of economics Paul Krugman, I’ll let you decide what a pack of imeciles the Nobel Prize committee are for giving Krugman the Nobel award for economics, but I bet old Alfred Nobel is turning in his grave.
Bloomberg’s Economy Face Off: Ron Paul vs Paul Krugman
Keep in mind that 800 years of economic history has shown that NO country ever recovered when the debt to GDP ratio exceeded 90%. Japan is over 200% and entering its 3rd decade of recession. Krugman conveniently forgets that part.
The U.S. Federal debt is over 100% and growing and all the borrowing and government stimulus spending has NOT led to their recovery. Paul Krugman wants even MORE debt.
Krugman’s brainless Keynesianism of spend, spend, spend into more debt might make sense if the U.S. recession were a normal business cycle. It’s not. It’s cyclical. It’ll take a long time to repair itself.
And, Krugman’s brainless Keynesianism of spend, spend, spend into more debt might make sense if the problem were ‘liquidity’ i.e. not enough money. There’s already too much liquidity. They’ve been printing trillions of dollars out of thin air for years now and it has NOT solved the liquidity problem because there is NO liquidity problem. The REAL problem is solvency i.e. too much debt. You don’t get out of debt by going deeper into debt. A five year old knows that.
Remember my mantra:
We can’t spend our way to prosperity.
We can’t borrow our way out of debt.
We can’t pretend our way out of trouble.
But those damn fools are trying to do all three.
May 2, 2012
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