Peter Schiff Clowns on Paul Krugman's Latest Plan (August 15, 2011)

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Paul Krugman is repeating the false premise that spending during the World Wars is what got us out of the depression. He also thinks that we need more inflation. So Krugman has decided that more spending is what is needed to get us out of this depression. And Krugman has come up with a solution.

If space aliens were to attack and we could spend a lot of money with deficit spending to prepare for the invasion. We need a new bubble. This time the bubble will be defense spending. After the tech and real estate bubbles, everyone will invest massive resources on alien defense precautions.

This is the best that Krugman can come up with. It is off the charts lunacy. But it makes sense if you are a Keynesian.

Krugman was a fan of the Issac Asimov Foundation series. Like the protagonists in those books, Paul Krugman wants to save the world. That is why he became an economist. He thinks that right now economics will be the salvation of the world. In 1929, we collapsed, but now we have Paul Krugman to help save the world. All by creating a fake alien invasion.

Category:

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Tags:

• Peter Schiff
• Treasuries
• Government Bankrupt
• Financial Collapse
• Economic Collapse
• Financial Crisis
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• Gold
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• Dollar
• Federal Reserve
• ron paul
• john stossel
• judge napolitano
• inflation
• hyperinflation
• interest rates
• capitalism
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• tom woods
• austrian economics
• krugman
• alien invasion

[wsmith1213]

Krugman is one of the dumbest economists ever, only Keynes was dumber.

[abortabraham]

this is why ron paul said krugman is dangerous. not just for his stupidity and the influence he commands, but the fact war is a solution for a bad economy.

[USTreasuryBond]

Unbelievable.....What a fucking idiot

[akruz52]

Once oil is not exclusively traded in dollars, the printing will have to stop. Krugman is a moron.

[puppetjaw]

@weavermama They have to propagandize, if they measured the real rate of inflation, including housing and energy, the civil servants, unions and pensions whose incomes are penned to inflation, would in itself bankrupt the country. Instead they manipulate the CPI and pass the inflation on to the middle class, by destroying the currency itself - FAIL!

[weavermama]

@bowchikabowbow If you simply measure the CPI using the exact methodology employed by our own govt. under Volker, you would see a figure of around 10 percent per annum. Still having difficulty seeing the propaganda? 

[bowchikabowbow]

@FartyFace Well the government that you distrust so much does report two inflation measures: the CPI and core inflation. The latest CPI was 3.8% and core was 2%.If you take a look at their report for all goods and services you will see that energy distorts the number substantially. So, I'm not sure how it is "govt propaganda" when the govt reports the very thing you say they distort.

[bowchikabowbow]

@FartyFace Nope, that wouldn't make us wealthy, but there are a ton of very good public works projects that we should build that can help foster private sector job growth. Mass transit in a city with clogged highways or new highways in cities with high traffic volume are good examples public works project that can help grow local economies. Blowing up bombs in Iraq destroyed wealth in Iraq, but it didn't destroy wealth in America. Not all explosions are created equal.

[FartyFace]

@bowchikabowbow

Government propaganda. What you just said is "there is low inflation when you ignore goods that are rising in price". Thats totally true. An equally valid statement is that "housing prices are at an all time high (if you ignore the houses that went down in price). That is also true.

You can prove anything you want if you ignore the things that disprove your assertion. Thats why the government changes the way things are calculated (inflation, test scores, unemployment)

[FartyFace]

@bowchikabowbow

Really building a bomb and blowing it up isnt destroying wealth. Thats literally the same as paying people to dig a ditch and fill it back up again. Do you think it would improve the US economy if we hired 100,000 people to build "the great pyramids of the USA". A massive public works project that just sits there and does nothing and has no purpose. We could have them build it totally by hand with no machines to employ even more people.

Would that make us wealthy?

[bowchikabowbow]

@FartyFace Well, no wealth was destroyed in the US. Wealth was only destroyed overseas and then the USA paid to rebuild most of Europe and Japan through the Marshall Plan. The US victory in WWII also lead the US dollar's reserve currency status, which has given the US an incredible advantage e

conomically over the past 60 years. BTW, I like your name, FartyFace. When I read it all I could hear was Cartman's voice pronouncing it.

[bowchikabowbow]

@FartyFace I addressed your point about inflation in my comment; I said "The only inflation we've seen has been caused by oil price increases". But, if you've been following oil prices and food prices then you know as well as I that they have been on the decline as of late. That is why there is the CPI and then there is core; the two are separated out because oil and food prices fluctuate more readily than most of what is measured in the CPI.