Tuesday, August 16, 2011

Letter to George Washington, Regarding Paul Krugman

I wrote a letter to George Washington, the pseudonym for a well-known finance and economics blogger, with regards to a blog post he wrote on August 15.  
The letter might sound a bit like score-settling—but there is a serious point to it, a point that applies to both the Left and the Right. So be patient. 
Here is my letter to him in full, with a few light editorial touch-ups:

Hi GW,

It’s been so long!

I’ve been skiing like a madman down here in Chile—but I did catch something you wrote, which I’d like to comment on, now that a blizzard has hit the slopes and I’m stuck inside with not much to do.

Paul Krugman
You wrote a post yesterday, picked up by Zero Hedge and others, pointing out that Paul Krugman is advocating war as a fiscal stimulus solution.

You pointed out that this position he holds is not only blatantly immoral, it is a position Krugman seems to have no problem openly pushing—your unspoken implication being that this is disastrous, considering how influential Krugman is in major policy circles.

With regards to K. pushing for war as the ultimate Keynesian economic solution: I hate to say “I told you so”—but in this case—

I told you so!

(Cheers, mate.)

I pointed out the exact same thing almost a year ago: That once you strip away all the B.S., it turns out that Nobel Laureate Paul Krugman, Keynesian par excellence and darling of the Wonk Left, is essentially pushing for war as the ultimate Keynesian stimulus solution.

For pointing this out, I got slimed by the Krugman Defense Industry (KDI).

My original post, pointing out that Krugman advocates war as the fiscal stimulus and solution, was called Why I Despise Krugman. I posted it on September 28, 2010.

And the response—i.e., the sliming—by the KDI was pretty severe and swift, considering that at the time, I was a lowly blogger with not much of a following:

• The sliming by Andrew Leonard at Salon: The Dumbest Attack on Krugman—Ever

• The sliming by Brad DeLong, Krugman's main flunky: Something Totally Batshit Insane Shows Up on Henry Blodget's Clusterstock

DeLong’s reference to Henry Blodget is because that’s where my piece was picked up. Fact is, DeLong seems to have lobbied Blodget to drop me from Clusterstock and Business Insider—and it worked, too, because although Henry didn’t cut me, my relationship with Joe Weisenthal, Blodget’s editor, was permanently soured because of this incident.

Joe Weisenthal
Weisenthal would go on to make my life fairly unpleasant insofar as Business Insider was concerned: Arbitrary edits that hurt my posts, yanking my pieces on a whim, then running pieces by other people that plagiarized my work.

Yeah, you read right: Weisenthal knowingly ran posts by other people that blatantly plagiarized my work. I mean Weisenthal did everything an editor can do to antagonize a writer without actually having the balls to drop him outright.

Naturally, I stopped writing for their outfit shortly thereafter.

What DeLong did was pretty mean, if you think about it: Lobbying to get an up-and-coming blogger to lose his spot at the table. BI and Clusterstock were running my pieces with my name in the title—a featured editorialist. Hey, that’s something: That’s the start of name-brand recognition.

But DeLong especially didn’t like me—because I nailed his precious Krugman. So I got shafted by some back-door shenanigans, which I experiences as passive-aggressive nonsense from Weisenthal.

Think of it from especially poor Weisenthal’s position: As a professional editor, he wants a job in the future. Business Insider might fold some day, but Weisenthal will still need a paycheck—after all, he wants a career, and he’s a young guy: In his estimation, he can’t stand on principle. He can’t afford to antagonize putatively well-respected, influential people like DeLong and Krugman. Hell, he might need to interview them some day—he might need to ask them for a job some day.

So from Weisenthal’s position, what’s passively-aggressively sabotaging a relationship with a new blogger, compared to antagonizing people who will influence your career?

Nothing.

Now, if I’m being honest—and I try to be—my first piece wasn’t without fault: Both Leonard’s piece and DeLong’s piece nailed me on something that was actually true—and a severe weakness in my original post:

I had not carefully cited any sources showing that Krugman was advocating war as a fiscal stimulus. It’s obvious that that’s Krugman’s position—but I hadn’t cited sources. Thus my piece could be attacked and dismissed as a mere rant, rather than an argument.

And so like Talmudic scholars dismissing an obviously true statement—say, that the sky is blue—because I didn’t cite any sources, they gathered up their righteousness like the robe of an ancient sage, and nailed me for it.

You know me: I’m not one to take things lying down. But I’m also not one to go off half-cocked. I did what was retrospectively the smart thing—I waited.

Fate was kind, and gave me an opportunity shortly thereafter:

David Broder, the Washington Post columnist, wrote a piece basically advocating war with Iran, as a way to politically unify the country. (Yeah, insane, I know.)

The KDI—in the shape of a DeLong rant—went to town on Broder.

Brad DeLong
Of course, DeLong’s hit piece on Broder was completely hypocritical. After all, Broder was advocating a war for political benefit, while Krugman was advocating war for economic benefit.

DeLong—rightfully—went medieval on Broder’s ass. But insofar as Krugman’s advocacy of the same “War Is The Solution” stance, DeLong was smiling and silently panting like a lapdog in the arms of a society lady stroking his teeny-tiny head.

In other words, DeLong left the door wide open for me—so I stepped through it.

I called my piece The Contradictions In The Life of A Fluffer.

And this time around, I did the smart thing: I referenced Krugman up the yin-yang.

Hell, at Dartmouth I got taught close reading and hard-core analysis when I studied philosophy—might as well use that god-forsakenly expensive education, right?

So I did: I did a close read of Krugman’s bullshit, and I made it a point of really catching every little nuance of everything Krugman has said, showing how the K-ster Monster from Princeton Junction is essentially advocating war in order to stimulate the economy.

As a side benefit, I also slimed DeLong so bad, he actually wound up changing the name of his blog for a while, as its original title—“Grasping Reality With Both Hands”—was a bit too apropos to my point that DeLong was Krugman’s fluffer. (If you don’t know what a fluffer is, read the piece.)

Yves Smith over at naked capitalism sent me a private e-mail, telling me that some people had commented to her about the fluffer piece, saying they felt actually sorry for DeLong after they read it.

I thought, “Yeay team!” (What can I say: I’m a vindictive bastard.)

The whole experience was an object lesson in the way the blogosphere works: How the best writing in the world, the most thoughtful analysis in the world, won’t necessarily get you mainstream notice—because there are gatekeepers who keep the riffraff out.

The KDI—in the shape of people like Brad DeLong in academia, and Andrew Leonard at Salon in the world of journalism—are the people who keep out the riffraff.

It also made me realize—because of Weisenthal’s passive-aggressive reaction that directly led to my exiting Business Insider—how insidious the whole Krugman Defense Industry really is: They are the self-appointed gatekeepers, the sentries you have to pass, in order to reach the mainstream, and thus have influence on the general conversation.

Because of this whole run in with the KDI, I no longer have a place in the mainstream discourse. I write my blog, get fairly big numbers, write what most people would consider thoughtful, intelligent posts—but I’m not considered “serious”. And therefore, none of my ideas or posts are discussed at levels where they might actually make a difference.

This gatekeeping by the KDI and other such cliques—mind you, on both the Left and the Right—keeps strong ideas from reaching the people with power: Ideas which might potentially help our society. And thus our society is poorer for it, because it cannot draw upon the best ideas in order to form a solution to a problem besetting us all: Only the ideas these cliques on both the Left and the Right allow to reach the table are considered—while everything else is automatically regarded as “fringe”.

For instance, I wrote a major piece of political philosophy—Why Democracies Will Always Go Bankrupt—which is essentially a valid, sound proof of something that’s been eluding economists for a couple of hundred years.

Yet nobody discusses it—in a very real sense, it doesn’t exist. Which is a shame, because it might help the discourse, and get our society closer to adopting a sane macro-economic standing.

I’ve been shut out of the mainstream. Which is fine by me on a personal level, but sad if you think about it on the level of social discourse: Tired ideas—like the KDI’s sacred Keynesianism, like the Right’s Corporatism—are repeated round and round, while fresh new ideas are locked out, and therefore never considered.

Thus new ideas cannot help the wider society—because they’re not allowed a place at the table.

And what’s worse, patently insane, blatantly immoral ideas—like Krugman’s notion about how war would fix all our economic problems, like the Right’s notion that what’s good for the banksters is good for America, when the exact opposite is closer to the truth—are allowed to grow like brain cancer on the body politic.

So I just wanted to tell you, Great Post!, as well as Watch Out! These people will come after you, if they can.

And if they can’t, they’ll ignore you as completely as if you didn’t exist. And to them, if you don’t exist, then your ideas don’t exist—and therefore aren’t worth repeating.

And thus your work will have no impact—and at the end of the day, isn’t impact what every writer wants? Don’t we want our ideas to help build a better society for us all?

As always, all the best,

GL

35 comments:

  1. Wow GL... You are seriously underestimating whether your work or the work of folks over at ZH have an impact. It may not have an impact in the MSM, but that's the land of dinosaurs -- already hit by a giant meteor with the species dying out very quickly.

    Tired ideas like KDI's ARE exactly that... Tired! And it's not like folks aren't catching on. Why is is that newspaper circulations, cable TV subscriptions and viewership of nightly news are dropping like a rock?

    No one cares about their "tired ideas" anymore. Yes, fresh ideas are "locked out" of having a place in the old paradigm, but who eff-ing cares?

    No one wants to sit at their table any longer anyway.

    There's an old saying that "activity begets activity." It means that action creates action. You may never have a firm grasp of your influence, but that doesn't mean that it (individually and collectively) is not creating cataclysmic change.

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  2. I've been saying that that Joe Weeniethal is a wannabe wallstreeter (and a dweeb) for quite some time now. I can't wait until that little smirk gets wiped off of his smug face.

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  3. You say it yourself - "Strolling Along the Shores of the Mainstream," which is why I love reading you. You studied philosophy. You know how the powerful play, and you know the trajectory of how events will most likely play out with this cast of characters.

    Please don't forget to write for those of us low-income-by-choice folks here at your free blog. We need you.

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  4. Gonzalo, be aware that truth is treason in an empire of lies. Keep up the good work, and God bless.


    http://www.aintmymedia.com/

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  5. Great post Gonzolo.

    The KDI is very real. Also, I have always felt that there was something opportunistic about JW that I couldn't put my finger on. It's interesting to read your personal experience with him.

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  6. Deep. At the time you wrote the letter (when there was snow in the mountains) you might not have considered yourself mainstream. It seems that today you are. The way I see it, you were mainstream back then. I guess the mail was delayed in arriving South.

    A hard balance of patience, persistance and luck wins the moments. All the boys want the prettiest girl at the dance. The other bloggers need to learn to share.

    This was a different kind of read. Worth considering and insightful. If there is ever a movie made about the plight of a blogger, this piece would qualify as necessary research.

    Cheers,
    Kansas out.

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  7. People who want to escape the lies and distortions of the MSM matrix seek alternative news (economic, spiritual, etc.) from the Internet and some occasional TV and radio (although one must be careful not to listen too intently to those who are obsessed with .... whatever on which they have focused). You write an excellent column and do not need to be part of the MSM clique of people who have sold their souls. I see Krugman as this: a puppet who was given a Noble "Prize" as a way to make him appear "legitimate" and an "authority" on economic matters. The prize-givers know that most people are lost in the Matrix and will immediatly stand in silence and allow the false authority to speak as though s/he has true authority and real understanding. He, like so many others who have won the "prize" are windbags with no real substance and who have never had a truly original thought in their lives -- everything they are comes from books and not discovering anything truly unique or contributing anything but a political agenda disguised as economics. He is, as Jesus said about the false authorities of His time, nothing more than dead-man's bones walking around in expensive suits....

    Regards. Paul T.

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  8. GL


    Paul Krugman like many so called experts has little common sense.
    His resume makes interesting reading, he has certainly ridden the carousel with America’s financial elite.
    However, that carousel is slowing down, and the middle class are getting closer, some are grabbing at the horses, slowing it further.
    The day will come when it stops and the marauding crowd engulfs its wealthy riders.
    People are not stupid, they are able to see through the smoke and mirrors, they have little respect or confidence of the elite running our governments, the nepotism, crony capitalism.
    Paul Krugman thinks he is part of this so called “Elite” trouble is, his views are often out of sync with a huge swath of the population.
    Take his article “ Oh! What a Lovely War!” (I would post a link, but that would increase traffic, not a good idea)
    He is again sounding off that war is an attractive solution to lead us back to prosperity.
    Even simple people that are behind the barriers of the carousel realize this is a stupid proposition that by definition is extreme and dangerous by any stretch of the imagination.
    The reason the US/Europe economies are in such trouble because of debt, although people like Krugman would love to see America’s youth conscripted to the military to save us from stagnation.
    Well, Dr. Krugman, it’s not the likes of you or the other “Elite” carousel riders who are willing to get off the merry go round and go fire a round to save the economy.
    The youth of today would rather take their chances on the streets of London, Egypt, Syria, or any other country where they feel the educated “Elites” have failed them.
    The time for new ideas will come, just not from people like Krugman.

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  9. On a very concrete level, it is obvious that the theft being currently committed by the banksters will/would never pass in the long run (revolt is inevitable), hence the real 'need' for a 3rd world war to distract and simultaneously work towards the NWO's well-publicized goal of 500 million people as total world population.

    Just like 9/11 was undeniably a false flag attack (http://personalgrowthcourses.net/video/9-11_truth_documentary), the next operation will be this fall (11/11/11, or maybe 10/13) and will be a nuclear strike against Israel, resulting in WW3 with Iran as the battlefront.

    The follow-up will come the next year (12/21/12) at which point fake aliens will be used to unite the planet against the 'outsiders', resulting in a world government and world currency.

    Since the fake alien bit is becoming fairly well known, Paul Krugman even came out recently to explain how a fake alien 'scare' would be economically beneficial to us (regardless of the widespread murders), in the hopes that even those who know will stay quiet about it, since it's all being done 'for us'.

    Regardless of whether you stand convinced that they plan to bring about WW3 and fake aliens, we have more than enough evidence to warrant impeaching and imprisoning Obama and cohorts, along with Bush and company. Don't give up! If you do, then you deserve what's about to be done to you and your family!

    REVOLT!

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  10. I saw the post by George Washington....it's no surprise to anyone who knows how the world works...that someone like Krugman, who is the official mouthpiece of the banksters in academia, would advocate war as a solution.

    War is the inevitable outcome of the soon-to-occur (no, make that the now occurring) collapse of the debt based money system. It is simply the way it always happens...(sigh).

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  11. As of next month I have cancelled my television service. A large part of the reason is that I no longer watch it. I no longer watch it because it espouses the same drivel and even outright lies that don't square with reality.

    Keep up the good work and and, by the way, good on you for admitting you messed up by not quoting your sources. Your honesty is what makes you great.

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  12. What a bunch of idiots attacking Krugman. He's not literally advocating for war. That's called irony, gentleman, where you say the opposite of what you actually mean. Anyone who tries to convince a reader that Krugman is actually arguing for war is just muddying the waters. All that Krugman is arguing is that a larger federal stimulus in the short term might be enough to keep the U.S. economy from staying in a long-term slump. He's using "war" as a metaphor or an object lesson. He's using war as an object lesson or example; he's not literally arguing for war. Jeez! Let's not overlook the fact that we have had leaders in the past who led us into war to jumpstart our economy. Krugman is just trying to make a point; the situation we are in economically is as dire as a war, so why can't the American people get as unified and focused on fixing our countries problems. One answer is that it's always easier to destroy than to build; easier to steal from other countries than produce on our own. He's making the point that it's sad that the people of our country and our leaders can only get unified around something like a war, but can't agree on spending for any solutions or building up our country. Isn't the fact that Krugman is only speaking about war ironically obvious to everyone here. It feels weird having to expain this to adults.

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  13. Inevitably, you will get at least half your comments from trolls, who in this case try to dishearten people ("It is simply the way it always happens...(sigh).") or argue vacuous points that depend on emotion more than logic ("It feels weird having to expain this to adults.").
    => in particular, that last anon Krugman apologist should give up on trying to argue that an establishment shill like Krugman is not "literally advocating for war", when in fact we have killed millions of innocents in Iraq, Afghanistan and Libya and continue to do so, while pukes like Krugman serve as mouth pieces for the administration and its monstrous crimes.

    YOU TROLLS SHOULD BE IN PRISON ALONG WITH OBAMA AND THE REST! Shame on you for being such self-centered psychopaths, shame on you for taking part in the destruction of America, the West, Africa and the rest of the world.

    The lamest part is how you trolls can't even tell how well you've been played, how you have only been given a small part of the truth and how you will end up as screwed as the rest. If there is any decency at all in today's world, it's because the NWO doesn't yet have total power over everything. Your degenerate race to the bottom will harm you as much as the rest of us, and yet you are too dumb to ever look outside of your sick co-dependent habits. WAKE UP!

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  14. Dear Anonymous

    Ahh Irony, I get it now. That irony thing is difficult for us British, even though we invented it....

    Anyway, enough of the irony. Below are the actual written words from PK: http://krugman.blogs.nytimes.com/2011/08/15/oh-what-a-lovely-war/

    World War II is the great natural experiment in the effects of large increases in government spending, and as such has always served as an important positive example for those of us who favor an activist approach to a depressed economy.

    What does he mean positive? Was WW2 a positive great natural experiment, I doubt the Jews would view the Nazis as a great positive example, maybe we should ask Joe Weisenthal if he has heard any positive examples from his ancestors...

    And the line: "for those of us who favor an activist approach"

    What, like you mean you Dr.Krugman, are you one of those of us? Because it sounds like it to me.

    And how about: It’s especially relevant because in the 1930s, as today, many wise heads insisted that unemployment was structural, that many of the unemployed could not be gainfully employed no matter how much demand increased.

    Well dah, the demand is not there because, the manufacturing got offshored, Americans have lost their jobs, therefore, no jobs no money, no spending.

    While we’re on the subject of irony and not wishing to muddy the waters any further, your comment is as soft as concrete or as clear as mud, and as pleasant as a root canal, that my friend is irony.

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  15. Worry not about the hoi polloi, they will never collectively understand. Just realize you are speaking to the remnant, a la Isaiah's Job by Albert Jay Nock. http://www.lewrockwell.com/orig3/nock3b.html Great little story which eases frustration with people around you who don’t get it.

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  16. Hey gonzalo,

    war is nothing.

    krugman was openly advocating DARPA bring out project blue beam. that is REAL stimulus according to him. one thing i can say to that is that i suppose mass deception is more morally upright than endless military keynesianism.

    http://azizonomics.com/2011/08/16/krugman-calls-for-alien-invasion/

    +1 paul krugman.

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  17. Krugman is surely advocating war. His tactic is throwing a stone and hiding his hands. So his words are more than a free suggestion.

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  18. I posted this on ZH, but I figured it fits here too.

    What Krugman and, well, pretty much every single person on the planet has failed to realise is that we've finally hit on the leisure dilemma.

    We finally produce so much per person that there is more than enough for everyone to live fairly comfortably.

    That is, if our financial system wasn't a sadistic treadmill that tilts higher every time we pick up the pace.

    But if you think about it for a minute, and you think clearly, you'll come to the conclusion that without the debt, every living adult could easily support themselves and a child in moderate comfort (Like royalty by historical standards) by working roughly 30 hours a week.

    The tragedy is that we failed to plan for this day. So we have a massive disparity of working hours. Those that work, work 'full time', and pay taxes to support those who don't work.

    If it was balanced out, we'd shift to a world where everyone worked roughly the same number of hours and living standards would condense like the socialist European states into a majority middle class. But we can't. Because of the debt. Sigh.

    So instead we get nutters like Krugman telling us that we have to do busy work. Work that serves no purpose other than to create work.

    I'd rather play in the park, thanks.

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  19. sensetti says:

    Gonzo
    If you are out there here.s another article posted today on the 16 trillion the Fed Invented and handed out. You busted on me yesterday for posting the same facts found below.

    Paul has revealed power of Federal Reserve

    by The Gazette Opinion Staff :: UPDATED: 16 August 2011

    ——————————————————————————–

    Share4
    ShareThis1

    What a politician says in not as important as what they do. Presidential candidate Ron Paul has talked about auditing the Federal Reserve for years. More important is what Paul has done.

    It has been illegal to audit the Federal Reserve since 1954. But, during the last congressional session, Paul managed to get an amendment added to a bill to take a small look at the Federal Reserve’s finances. The results are revealing.

    The total U.S. debt is around $14.3 trillion. Thanks to Paul’s efforts, we have learned that between December 2007 and June 2010, the Federal Reserve gave interest-free (or nearly so) loans to favored companies and foreign banks totaling

    $16 trillion.

    In less than three years, the Federal Reserve gave away more money than our nation’s entire debt load. As a result of Paul’s persistence, we learned that the Federal Reserve, has more financial power than the entire United States.

    I like what Paul has to say and has done. I would like to see him do more as president.

    Roger A. Kistler

    Sensetti

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  20. Sorry Gonzalo,

    what you call "a major piece of political philosophy" is in my opinion citing the obvious. At least I haven't found anything new.

    But worse than that you are narrowing the arguments down to the contradicting will of the people being the driver of debt.

    Fo me there are two flaws in your theorie:

    1) The premise for excessive debt being democracy

    Logically then a communist country is likely not do go into debt in reversal of you theory as there is no contradicting will. Dismantled by history very easily.


    2) The idea of people in power and control

    Go figure yourself who's in charge in the world today. Do you think it is the people?


    While debt is the anasthetic substance to keep people in control it is what keeps the money junkies on Wall St. high. Both sides love the side effects while nobody wants to pay the bill. So it is delayed into the future and the contradiction is gone. Based on observation I would say your theory can not be applied where the premises can not be met.


    Sorry, but I see why this is not discussed. It is clearly lacking substance while indeed it looks smart on first glance. Sorry to say so but you missed the point by far. Trying to use the same argumentation and tactics as the established economists will make you fail and the recognition your are obviously trying to gain will come one day.

    Homer

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  21. Why doesn't he support the Iraq war? I really think this is a case of reading comprehension. He supports stimulus spending and used America's experience in WWII as an example, albeit a nasty one, of stimulus spending working (other effects of war outside of government spending can obviously destroy any positive side to the actual government spending, Krugman and most of his readers understand this). This is not the same as literally advocating a war. It would be immoral to do so and war spending is much riskier (as well as immoral) than peace spending. This is an obvious misunderstanding Krugman is not for war as a way to get out of this recession and merely used WWII as an example, if you want any more proof that you are indeed misunderstanding his point check out his "Evil Me" post on the blog today.

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  22. Democracy is election by sorcery:

    Make the people vote for something they don't want by fooling them into thinking they want it.

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  23. A noticeable feature of US politics right now is that our country cannot extract itself from any part of the multiple quagmires that are steadily sucking us down. We do not have the cohesive will - or energy - to leap to safety. The vision that comes to mind is the hapless prehistoric animals that became trapped in tar pits. Their energy was drained ... until all hope of escape faded away.

    PeteCA

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  24. so what ya lame brained butt muncher. Like you matter at all. Hell, nobody does. Get over it and grow a set of balls that arent filled with cotton candy ya wanker.

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  25. You're a knucklehead. You don't have a clue about the consequences of the positions you hold, nor have you any insight into the cultic nature of your anti-Krugman rants. Now you're alleging that Krugman's example of a planned governmental response to an alien threat as a way to revive the economy was really a veiled metaphorical piece advocating war as a way to accomplish the same end. But your criticism is clearly taken out of context. Nor is it clear that in the information that is available, Krugman is advocating some false-flag event to achieve the same result. The fact is few have seen the entire TV segment which aired Krugman's views. I know I haven't. Have you?

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  26. "so what ya lame brained butt muncher ..."

    Having trouble saying something intelligent?
    This might be a good time to enroll in high school.

    PeteCA

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  27. Gonzalo, you're better than this. It's called sarcasm; Krugman isn't calling for war. He is making a point about Keynsian economics and (whether you except it or not) the benefits that can be derived from massive government spending; like in war, duh.
    By taking a tongue-in-cheek argument and twisting it into his actual position, you are demonstrating a stunning lack of integrity. You have either let your hate for the man blind you or you are not as smart as I thought you were.
    The real joke is the horde of poo slinging monkeys that are nodding in agreement with your every word.

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  28. Looking at the charts today - the current picture of the S&P500 ($spx on stockcharts.com) should be sufficiently grim to chill the hopes of even the most optimistic buyers. It's pretty clear that if $SPX falls below the important upport at 1050 in the next coupoe of weeks, then the carnage ahead could be big. But what would convince us that further damage lies ahead, rather than this being another market correction? It would be easy to note that the fundamental problems in Europe have not been solved at all, or that profound weakness can be expected in future earnings reports. However, today I will single out that the banking index $BKX reached a fresh low at the end of thw week - and does not look to be recovering. Clearly ... this argues in favor of considerable caution.

    My interest right now is primarily in the little-discussed Japanese yen. $XJY is continuing to soar to new heights - to the great dismay of the Japanese central bank and all the exporting companies in Japan. What is remarkable is that the currency interventions by the BOJ have had almost NO effect in stopping the relentless rise of the yen. Clearly, the lack of confidence in the debt markets in Europe and the USA is causing those currencies to sink - while placing the Japanese currency under serious stress. How long before we see a major repercussion in the Nikkei and the Japanese bond markets? It can't be long.

    Just my $0.02

    PeteCA

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  29. You're doing the right thing.

    I know you have brass balls, so you don't need folks telling you that you're going to be ok. But, I just liked something about you. You decided to stick with a principle rather than to squeeze in to an allowed chair, when you actually could. That is truly rare.

    If it is of any importance, rest assured that other principled people are valuing you more for it, even if the mainstream ignores you.

    Unfortunately, since the days when gods were here, people learned that cute is special, and to this day, value-less, brainless cute that resembles them, is the subject of mainstream attention. What this means is that, even if there were no gatekeepers, Gonzalo, the mainstream would not be interested in anything that has a core value, in any good thing you could offer. One must loose value and become an empty pretty shell to appeal to mainstream.

    Just like your thought that democrats will always go bankrupt, so is the fact that the public can not possibly be interested in anything valuable.

    If I estimate you right, in case that such is the mechanics of public attention, then you probably won't even care, as you can take care of yourself by a number of other means. I agree that it is sad, that because the public is never [you say presented] entertains the right questions, our society will remain forever deficient.

    Remember Gladiator? You can do the same if you want the fun of vengeance. In this case, do not attack them on their real weakness. Instead, attack them on what disqualifies them to be loved by a crowd.

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  30. Actually, Krugman is correct as far as the apparent effect of war on economy.

    If we were to think that we need to ramp up to prepare to face an existential threat, and then it wasn't there anymore, then say 18 month down the road we would not have this crisis any longer. True.

    What everybody seems to be missing here is the truth (is anything really new under the moon?).

    Your usual commentators are not telling you that Krugman is right, because, they don't believe you're smart enough to understand why it is not an acceptable solution, extraordinarily so, even though there may not be any other solution and we just have to live through the pain of depression. It is simply dishonest to use Krugman's solution, which, of course wouldn't bother Krugman himself.

    Krugman, in turn, isn't telling you exactly why that would be a solution, because most of you would then know he plans to rob you blind, and would leave the country.

    The way a war works to beef up the economy is by taking 99% of resources of people and putting in in government control, however inefficiently. Once the war is over, the remainder is up for grabs sort of like "free for all natural resource", or is pounded into the base of infrastructure, therefore qualifying as a long term cost prepayment. The "enterpreneurs" then are free to "productively use" that to create an "booming economy".

    A though experiment. Let us say that we took one person, and squeeze 99% of his health away, converting it (for the sake of simplicity) to electric power. (Let us imagine that he was pedaling the generator for 18 wartime month for free under the threat of being shot as an enemy combatant if he didn't pedal).

    The war ended, and even though our guy generated 1,000,000 kWt of electricity, the inefficient government generator and crappy government battery only delifered half of that, or about 500,000 kWt. Now, some enterpreneur is gonna get a hold of that and sell most of it making profit for himself and employing 2 people. Some of the energy is also used to power a free trolley bus connecting residential area and a factory, so that workers can afford to work for less, not being compensated even for the cost they carry, and still think they do come ahead.

    That is the economy that Krugman offers you to build, but he is not telling you that you gonna have to pay 99% of your health, cause you wouldn't want to.

    That is the economy that most anti-keynesians say is impossible to build, and they are lying, because they are afraid that you may not be smart enough to see the horrible cost it will come at.

    Politicians will invariably support Krugman, and it is very likely that the US will have to get itself into a major conflict, in order to justify new government powers, under which YOU will either be a casualty or YOUR health and /or wealth will be 99% confiscated.

    Thus, the apparent positive effect of war on economy is only a balance of what was forcefully extracted from million made dead, and millions that don't even know what was taken from them. This, is what Krugman advocating to be done.

    Politicians will say this : "EVERYONE NEEDS TO PULL TOGETHER NOW"!!! I predict, and guarantee you this.

    Don't you worry about them, they are going to come out all right, as well as their families.

    Me? I did not ride in a black suburban with tinted windows (which for regular people are even illegal to have), so why should I "NOW PULL TOGETHER"? I did not spend this, and I am sure as hell not going to pull now.

    You? It's up to you. If you choose to go the Krugman's way, one good thing is that children are going to learn in school that you died as a hero, paying with your life, limb, health or wealth for Obama's Suburban.

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  31. The reason Republicans get it wrong so much is that they worry about the money. Not unemployment, accelerating poverty, pollution, climate degradation, violent weather, glaciers melting, skyrocketing tuition, peak oil, rising food prices, or political dysfunction. In short, they don't care about the real world...only the money.

    Krugman doesn't have that problem.

    continued at http://www.seconnecticut.com/budget.htm

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  32. GL,

    Thanks for your blog. I purposefully have referred to "Why democracies always go bankrupt" numerous times since I've read it.

    Just forwarded "What distinguishes the rich" as well.

    Keep up the good work, and don't underestimate where your influence may be working!

    SCP, New Hampshire, USA

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  33. GL,

    The K man has been a fraud in my estimation for 20 years. He like Cater and Obama have done nothing to deserve the adoration they have received by the elite Noble Committee.

    His current trend is to defend the proven failed Keynesian theory on following blindly the model provided to him by the hero of all progressive thinkers - FDR. After the failure of the FDR collective work programs and deep debt he was forced to go to war. The war is all that saved him from the failure of the Obama Keynesian experiment is facing today.

    Krugman, is like a deer caught in the headlights - does he jump or just hope the brakes stop the truck. K man can not admit the policy is what cased the failure or he admits his life was wasted.

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  34. GL, the msm is long gone. Everybody knows they are liars, parrots and water carriers for the corp and govt liars. They are nottrustworthy and as a result they cant getanyone to pay to read their garbage. You are now in good company; infowars, drudge and natural news ringing the bell of truth!

    ReplyDelete
  35. Hello,
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    ReplyDelete

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