Krugman Reveals Krugmonomics Fails Even in Small Elite Liberal NYC Neighborhood

The Peter Schiff Show - 11/29/2011
Follow me on Twitter @SchiffRadio

Category:

News & Politics

Tags:

• paul
• krugman
• Occupy
• Wall
• Street
• Peter
• Schiff
• economy
• economic
• collapse
• crash
• gold
• silver
• oil
• bubble
• doom
• inflation
• depression
• recession
• rogers
• faber
• ron
• ben
• bernanke
• euro
• dollar
• Hang
• Sang
• NYSE
• nasdaq
• currency
• crisis
• stagflation
• commodities
• bear
• bull
• fraud
• NIA
• college
• conspiracy
• national
• association
• standard
• and
• poor's
• down
• grade
• s&p
• downgrade
• dennis
• gartman
• bill
• gross.
• super
• committee

[ElNeedle]

Peter! I'm reporting you to the ASPCA for picking on a poor ignorant ferret!

[Sinisterene]

Even when Peter is drunk off his gourd he'll easily defeat economic ignoramuses B^|

[TheNickk538]

The baysitting coop has a fixed population as well, in the real world more people are added to a population every year and if your GDP is growing every year the economy gets larger and larger, meaning there's more people to supply with coupons and more people to tax..

We don't even "print money" today, we type numbers on a computer screen, most of the "money" doesn't even exist, Most of the actual "money" is sitting in banks.

[TheNickk538]

You forgot the part where the coupon issuer can issue tax on the coupons, they can also lower and raise tax. When you raise the tax less coupons are in circulation, when you lower it more are in circulation, and when you get in a recession the issuer just prints out more to restart the engine.

[TWSceptic]

Krugman is what happens when a socialist becomes an economist.

[pjarosz]

@fausto412 Since the means to produce the goods have gone up as well, the supplier cannot take advantage of the higher price and produce more goods. The end result is that we end up in the same position as we are in now. They gave us bailouts, we spent it, and we are still in recession. Thankfully some of the misallocations were liquidated before the bailouts so we are not in as bad of a shape as we could have been if the bailouts came sooner.

[pjarosz]

@fausto412 This is exactly what needs to happen during a recession for the economy to be restored to health. Resources that were misallocated have to be reallocated to more efficient means of production. The misallocations will still be present in the system if you increase the money supply. As a result higher prices will ensue. With more money chasing the same amount of goods; you will have higher prices but no change in the satisfied demand for consumers because quantity supplied is the same.

[pjarosz]

@fausto412 I have read it. They’re problem was not a liquidity issue. No recession can be cured by printing and spending that money. There is never a lack of demand. People will always want things. The problem is that they can’t afford it, because they don’t make enough money. They don’t make enough money because they not productive enough. If they were to find ways to become more productive, then supply would increase, as would wages, prices would fall and demand would be further satisfied.

[fausto412]

@pjarosz ...reserves which is just plain crazy and because inflation is so low they come out ahead letting it sit even without the interest they collect on excess reserves from the fed. That's why the baby sitting coop calls for something to make money that sits still loose value and encourage people to use it so the economy works. bank's interests are not in line with the overall economy. Krugman and others been on this since 2008.

[fausto412]

@pjarosz just to clarify, printing the money alone doesn't solve the problem. You have to spend it. You have to get it into the real economy ie people and in a productive way. Since 2008 the monetary base has tripled but that is money sitting on the sidelines. It is money that isn't making it to the people, it isn't building things. It's just created out of thin air by the fed to help banks, not people. bank have no incentive to put the money to work because they collect interest on...

[fausto412]

@pjarosz I have not read his book but I've read his blog and articles for 4 years. Read the baby sitting coop and think, think hard. The reason a recession such as the great recession can be "cured" with not just printing money but actually spending it is because demand is far below the capacity to produce. Businesses won't spend and government is the only one who can borrow to get demand back up. You either spend or wait around while equilibrium is restored sometimes in 2020+ 

[pjarosz]

@fausto412 Wow you are completely wrong. Have you read Krugman's book; The Return of Depression Economics? Pg 20 "... it (the solution) was sim­ply because the monetary screwup had been rectified. Recessions, in other words, can be fought simply by printing money—and can sometimes (usually) be cured with surprising ease." His own words. Peter has every right to rant about how stupid Krugman is.  Don't just say things that aren't true. Maybe next time you won't embarrass yourself