The Return of Depression Economics Part 1 (of 3): The sum of all fears

[sweeves]

What a well spoken idiot! He talks a lot but offers little concrete. I would like to award him a Nobel prize in idiocy. If the average person did like he suggests and kept going further into debt bankruptcy is inevitable.

I just hope they can continue this idiocy so I can increase my insurance against Keynesian economics in the form of physical silver and gold.

Fiat currencies will have to be abandoned soon, there will be so much paper, I pity the poor trees that died for no cause.

[mrzipdisk]

Wish I could see the slides!

[vitelliusiii]

Im using an MNL model to answer a new question: why do Austrian schoolers troll youtube so much? Hypothesis: having done nothing in the field for the last 70 years they have very little to do.

[dleksen]

This guy has no clue! Not a single, tiny clue!

[madn0rman]

why would anyone save money at 0% interest?!!! especially when inflation is at 2+% The paradox of thrift doesn't seem to explain this - this guy seems to talk yet explains very little!

[weavermama]

@madn0rman Exactly! The negative real interest rate is proof of the bankruptcy of the keynesian school. They have been reduced to the point of paying people to accept their paper pulp. The interest rate(price of money) should be a function of supply and demand just like any other commodity. Paul Krugman's work will seem ridiculous to our posterity.

[weavermama]

@madn0rman Also the govt. loves fudging the numbers every time they might expose their malfeasance. If you simply use the same govt. methodology employed by Volker, you would find an inflation rate around 9 percent per annum! Damn lies and statistics!

[bumzo]

This guy needs to read Horizontalists and Verticalists by Basil Moore. This discussion of money is so confused. Loans create deposits and then banks go to the Federal Reserve to get the required level of reserves. He has the causality all backwards, the money supply shrank in the Great Depression because nobody was willing to borrow money and everybody repaid their debt, effectively destroying money.

[NicTheNZer]

@bumzo Exactly right.

[Ravengaurd6]

@bumzo Not to mention the Federal Reserves refusal to perform it's intended function by allowing banks to collapse. this has been confirmed by Bernenke Himself.

[Teadon86]

uuuuhn! uuuuhn! uuuuhn! uuuuhn! Explains important stuffs. uuuuhn! uuuuhn! uuuuhn! uuuuhn! Explains important stuffs. / Repeat.

[warriorprince1010]

Taxing and spending has never worked in the modern era, ever, ever, ever. It is the Southern Europe policy that the UK an the USA is following. Whereas in Northern Europe they have no defecits, less people on welfare, more people working, less state involvement, less poverty...all down to good education, free markets and none corrupt governance. Obama and Brown could learn alot.

[bulgeland4]

I HATE THIS NINNY!!!

[guelsuen1987]

krugman for president!

[calorus]

We need to be able to see the charts or chunks of this are somewhat difficult to follow...

[calorus]

We need to be able to see the charts or chunks of this are somewhat difficult to follow...

[KypHeM]

Krugman is the man!

[BLACKPUSSYPUNISHER]

@KypHeM-I agree with you, but I think he should be Treasury Secretary, or at LEAST the main economic adviser for the current administration.

[MrBloody32]

Paul say "uh..." too much. But in all seriousness, thanks for posting this, I'm a big Paul Krugman fan, I always look forward to reading his columns (the only reason in the world to happy for it to be Monday).