Now that QE1 and QE2 are the undeniable failures they were predicted to be, Nobel Liar Paul Krugman is predictably out shrilling for another round of the same kind of money printing that has not worked twice before. This is a typical Keynesian response and the kind that we have heard before from Krugman.
The tiger as they say is by the tail. To avoid defaulting of Treasury bonds the Fed must keep printing, but to avoid hyperflation it must stop printing, leaving who knows who to buy the bonds. It's an impossible choice, but one the Fed has made and obviously made the one to print. So, last week with the risks palpable and pervasive, just as Cramer had done before, in service of his masters Paul Krugman went to work.
So, with the first two rounds of stimulus abysmal failures, Krugman feigns frustration over the reluctance to do what he knows cannot work.
Paul Krugman is so frustrated by the lack of support for another round of stimulus spending that he's now calling for a fake alien invasion of the United States to spur a World War II-style defense buildup.
Paul Krugman knows that the kind of monetary stimulus he calls for can never work, yet the consummate Keynesian he continues to offer up the same shrill responses, more, and again. We need to spend more and we need to spend it again and again, on and on, ad nauseam. Krugman's argument of course is purposefully and perfectly masked by the word stimulus. Stimulus has nothing to do with what Krugman is speaking about. Stimulus doesn't mean stimulating anything, rather it means borrowing at interest from the federal reserve.
The deception is as stealthy as the logic is circular. No nation or individual can't borrow itself out of debt. Not a sounder statement exists. Any discussion over going in to further debt to pay off the debt would be terminated immediately. But stimulus, who could be against a stimulus for the economy? So, the false debate led by a Nobel front man takes hold.
Krugman knows that returning lost jobs from China and India will stimulate the economy not borrowing money printed from nothing at interest and charging taxpayers via their personal income tax. Any Nobel idiot knows that deficits can never be repaid by borrowing to repay them. So, we can only deduce that Krugman is lying again.
Krugman noted that the effort of World War II helped end the Great Depression, and joked that something similar was needed today.
Any economist who believes that World War II ended great depression has lost his mind. War is costly and governments eagerly become deeply indebted to fund them. That is why bankers worldwide throughout history are so universally fond of bloodshed. Especially when the money they lend comes from thin air. The United States went into needless debt to pay for World War II. The United States would have been better off if the government funded the war effort by issuing the money to pay for it without interest. The post war boom was due solely to the fact that the United States was the only industrialized nation not left in flaming ruins.
But now it is the US economy in flames and Krugman just won't quit.
"If we discovered that, you know, space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months," he said. "And then if we discovered, oops, we made a mistake, there aren't any aliens, we'd be better--"
If we discovered that, you know, space aliens were planning to attack we would massively borrow, and just like an indebted borrower who discovered a new line of credit we would appear to be temporarily more wealthy. But the debt would have to be repaid and the only way, Uncle Sam has of repaying his debts to go into deeper debt.
We would be better off to be invaded by real space aliens than to go into needless debt to defend against fake ones. That is what's wrong with the entire United States monetary system, first it borrows money into existence, then it borrows to repay the needless debt it assumed. This is great for and only for the bankers.
Of course, Krugman is not really calling for a space invasion—but that hasn't stopped some people from framing his comments as part of a giant conspiracy by a shadowy group of elites to enslave the world through a fake alien attack.
Of course not, Krugman comments come as part of an effort to further in-rich and empower a small but powerful coterie of perniciously usurers, using the ancient scam of money from thin air, to make debt slaves of us all.