The only way out of this mess without a transfer of power from the current capital holders to a new group is that we print a whole crapload of money. I think another 5T will do the job. I'm with Krugman wholeheartedly.
So many libertarians think they are clever bashing him on the basis of his advocation of government stimulus to recover the economy, and then go on to place blame on the left when job losses keep rising ... But I don't see them proposing a *better* alternative that takes into account the general health of the global economy. They complain about a future indebted class that results from these decisions, but yet conveniently don't evaluate how the future generation will be doing in alternative scenario... I'd rather have a job +debt than no job and starving.
Too much debt in the system and way too high a credit multiplier until we get to a new base money level with a more sustainable lower credit multiplier. The only way assets hold their value in the face of that is a lot more base money - an unimagineable amount.
Besides the tax cuts, barely any of the current round of stimulus has actually taken effect. So to those saying this stimulus isn't doing anything, they aren't exactly speaking accurately, since we haven't yet had the stimulus come through.
Pick your poison. The alternative is massive unemployment (9.5% is not massive unemployment. 30%+ is), creative destruction, etc... the Austrian prescription.
Inflation or a terrible decade until we can tolerate it no longer and by default find someone new to fight a war with. Those are the realities. Any others are a delusion for idealists.
The "burying of future generations in debt" (or inflation-tax dollar devaluation) was *already* done over the past decade. What we are doing now to prevent free-fall is pre-ordained ... We long ago made our destiny (by allowing money formed by credit to have such high creation multiples) - once you do it, there is no going back (without default). I hardly call borrowing 6% of GDP in the face of the credit-bust we are seeing a revolutionary action, even though the notional numbers are staggering.
So many libertarians think they are clever bashing him on the basis of his advocation of government stimulus to recover the economy, and then go on to place blame on the left when job losses keep rising ... But I don't see them proposing a *better* alternative that takes into account the general health of the global economy. They complain about a future indebted class that results from these decisions, but yet conveniently don't evaluate how the future generation will be doing in alternative scenario... I'd rather have a job +debt than no job and starving.
Too much debt in the system and way too high a credit multiplier until we get to a new base money level with a more sustainable lower credit multiplier. The only way assets hold their value in the face of that is a lot more base money - an unimagineable amount.
Besides the tax cuts, barely any of the current round of stimulus has actually taken effect. So to those saying this stimulus isn't doing anything, they aren't exactly speaking accurately, since we haven't yet had the stimulus come through.
Pick your poison. The alternative is massive unemployment (9.5% is not massive unemployment. 30%+ is), creative destruction, etc... the Austrian prescription.
Inflation or a terrible decade until we can tolerate it no longer and by default find someone new to fight a war with. Those are the realities. Any others are a delusion for idealists.
The "burying of future generations in debt" (or inflation-tax dollar devaluation) was *already* done over the past decade. What we are doing now to prevent free-fall is pre-ordained ... We long ago made our destiny (by allowing money formed by credit to have such high creation multiples) - once you do it, there is no going back (without default). I hardly call borrowing 6% of GDP in the face of the credit-bust we are seeing a revolutionary action, even though the notional numbers are staggering.
