Title: Is Dr. Paul Krugman one more Keynesian Krackpot who has History Ass-Backwards?
Author: Andrew M Molchan
Date: Sun July 8th, 2012
July 8th 2012, ANDY'S UNPOPULAR INSIGHTS. Is Dr. Paul Krugman Another Keynesian Krackpot who has History Ass-Backwards?
I was reading Dr. Krugman's suggestion that the Government fake an Alien Invasion so it could spend a lot more money, and thus SPEND the USA out of recession like what supposedly happened during WWII. He says the Alien Invasion part is a joke, but he's kidding on the square.
In my opinion, Dr. Krugman is proof that you can win the Nobel Prize and still be an idiot. Or, maybe the Swedes have a weakness for socialist economists?
First of all, if the New York Times hires you as their chief economics reporter who know you're dealing with a leftist wing-nut because the NYT wouldn't hire any other kind.
Krugman, like the FED creeps, keeps saying that it was the SPENDING of WWII that broke the back of the Great Depression. Dr. Krugman has it ass backwards.
Here's a question for Dr. Krugman, "What happened to America's Gross National Products during World War II?" Seems like a simple question to answer - right? Then why does almost everyone have it WRONG?
All of the Keynesians will say, "GNP and consumption went UP during WWII and that's want ended the Depression."
The FACT is that America's Gross National Product of Goods and Services (GNP) went DOWN by 22% during WWII. Yes, Down by twenty-two percent.
During the war there were: no new cars, no private home construction, no new radios, toasters, washing machines, refrigerators, no new cameras, typewriters, cash registers, almost no new NOTHING. Gasoline was rationed, travel was restricted, food and coal was rationed, GNP went DOWN by 22%. The great-god of the Keynesians, CONSUMPTION, went WAY DOWN.
The brainwashed of the world will say, "But factories where making a lot of things." Like daaa! A tank that's made in the USA and sent to Guadalcanal, and it would NEVER return to America, was NOT something used and consumed by people in America. The tank was NOT part of Americans consumed and used.
However, Krugman and his fellow Keynesian Donkey-Brains ARE correct when they say WWII's activities broke the back of the Great Depression. EVERYONE IS IN AGREEMENT that Something during WWII Clearly Worked, but What? So if it was NOT CONSUMPTION, because American Consumption went way DOWN because of NO products to consume, then what in WWII DID end the Depression?
During WWII, America's SAVINGS RATE went UP to 22% of total income. Everyone was working all of the time, but there WAS NOTHING TO BUY. Nothing to Consume. By 1946 there was so much SAVINGS in the hands of individual Americans the Depression was washed away.
Today, the US Saving Rate is one percent (1%) of total income.
Yes, USA Gov Debt did go UP in WWII, but 99.9% of the interest paying Debt was owned by Americans. In WWII, Debt=Savings. The American Government's WWII Debt made individual AMERICANS RICHER. What the FED, and the Krugman Krispy Kreme Brains do NOT "Get" is that today American Debt makes the Chinese Rich. Today, American Gov Debt makes individual Americans POORER. The more QuEer Money the FED fabricates the POORER the American people become.
All of the Keynesian donkey-dicks have it ass-backwards. IT was NOT the "Consumption" of WWII that ended the Depression, it was the SAVINGS during WWII that ended the Depression.
FAST FORWARD. During the last 5 years the FED A-holes have been doing everything possible to REDUCE SAVINGS. They are bankrupting half of the world to make SAVING as unattractive as possible. This is exactly the WRONG STRATEGY for both America and the World.
And guess what? The FED's WRONG STRATEGY is NOT working.
The parts of the world that are CUTTING COSTS, and Increasing Savings, like most of Europe and Asia - THEY HAVE IT CORRECT. Their road will be very hard in the short run, but it IS the correct road for the long run.
Here's the core concept that Bernanke and the FED are too stupid to understand. It's NOT Debt that makes you wealthy, it's SAVINGS that makes you wealthy. Debt is Greece, saving is China.
THE FED STUMBLE BUMS KEEP STUMBLING FROM THE WRONG GRAND STRATEGY, TO THE WRONG ANALYSIS OF HISTORY, TO THE WRONG TACTICS. The FED is so ass-backwards, and Keynesian F***ed-Up, they think up is down and down is up. Take the tactics of LOW Mortgage Rates, and real estate being stuck in a mud hole for the last FIVE YEARS with NO end in sight. Bernanke makes the FED's PROVEN FAILURE BIGGER by coming out and saying, "The FED is going to keep Mortgages Rates low Forever." Like cra-a-azy! Where's the INCENTIVE to buy now? It's NOT there. If the FED were to say they would be RAISING Mortgage Rates by 25 bases points every quarter for the next two years there would be BIG INCENTIVE to buy Real Estate right NOW.
The FED will NOT raise Mortgage Rates to increase Real Estate Sales because the Sh*t Heads Nationalized Fannie Mae, Freddie Mac and all of the other Hillbillies. The low fixed-rate mortgages the Gov already de facto bought with US tax payer credit would LOSE a Trillion Dollars in value if current mortgage rates went up.
First, America gave the suicidal Zionist fanatics 200 nuclear bombs, and nuclear firing submarines that can aggressively nuke major cities all over the world. Then in Iraq Part II, America spent 8 years killing and bombing women and children in a search for something that was never there. Now, America gives the running of the world's economy to a collection of FED Keynesian Krackpots who are wrong about almost everything. What next?