Paul Vs Paul Post-Mortem

[stockholmer]

http://www.zerohedge.com/news/paul-vs-paul-post-mortem

By way of post-mortem of this afternoon's epic Paul vs Paul cage-match, we reflect on the various headlines the two gentlemen made during the event and in the context of the credibility with which one of the gentlemen discusses his ability to manage the world and the 'ease' with which he and his henchmen can control inflation (and that an unmanaged economy is subject to 'extreme volatility'), we remind readers of the post-WWII years and the extreme swings in purchasing power that their so-called managed economy created - a period which Krugman explicitly pointed out as golden years for the post-depressionary period.

Summarizing the words and thoughts of a megalomaniacal Keynesian dream-maker is hard but the following effluent effusive comments via Bloomberg will provide the much-needed color on this afternoon's Bloomberg TV appearance:

•*KRUGMAN SAYS FED SHOULD ACCEPT HIGHER RATE OF INFLATION
•*KRUGMAN: FED SHOULD KEEP RATES LOW UNTIL "WELL PAST" 2014
•*KRUGMAN SAYS INFLATION EASIER TO CONTROL THAN DEFLATION
•*KRUGMAN SAYS U.S. WOULD BE BETTER OFF WITH 4% INFLATION RATE
•*KRUGMAN: CONTINUED MASS UNEMPLOYMENT "RECKLESS". NOT INFLATION
•*KRUGMAN SAYS U.S. ECONOMY IS "PERSISTENTLY DEPRESSED"
•*KRUGMAN SEES "MASSIVE FAILURE" OF SYSTEM WITH 8% JOBLESS RATE
•*KRUGMAN SAYS "NO REASON TO PANIC" OVER U.S. DEBT NOW
•*KRUGMAN SAYS U.S. DEBT NOT "ANYWHERE CLOSE TO A RED LINE"
•*KRUGMAN SAYS SLASHING SPENDING MAKES DEBT PROBLEM WORSE
•*KRUGMAN SAYS UNMANAGED ECONOMY SUBJECT TO "EXTREME VOLATILITY"

US CPI in the 1940s...Zee Stabilitee



And from the more open-minded of the two 'Pauls' - it appears his statements lie somewhere in the credible (and not at all psychotic and narcissistic) regions of the mind:

•*RON PAUL SAYS GOVERNMENTS AREN'T SUPPOSED TO RUN THE ECONOMY
•*RON PAUL SAYS `THE PEOPLE' ARE SUPPOSED TO RUN THE ECONOMY
•*RON PAUL: FED HAS DESTROYED 98% OF DOLLAR'S VALUE SINCE 1913
•*RON PAUL SAYS FED SHOULDN'T HAVE A MONOPOLY OF CURRENCY
and while he does note that:

•*PAUL SAYS FED IS LENDER OF LAST RESORT FOR POLITICIANS
he also adds more pragmatically that

•*RON PAUL SAYS WOULD BE "CHAOTIC" TO END THE FED RIGHT AWAY

snip

-------------------------------------------------------------

USA has at least $120 Trillion In Total Debt (when off-budget debt such as Fannie Mae, Freddie Mac, Off-Shored derivative accounts held by the Fed and unfunded mandates such as fully actualized Social Security and Medicare debt is taken into account)


http://thesantosrepublic.com/2011/06/usa-deficit-120-trillion-new-debt-to-the-unborn/

[Taitertots]

1. Pretty much everything Krugman says is right

The problem is it actually requires knowledge of economic theory and history to understand what he is talking about. Anyone spoon fed a diet of internet pseudo economics won't be able to understand what he is talking about.

[JDPriestly]

2. The US Constitution only authorizes Congress to decide on currency.

Article I, section 8, subsection 5


1: The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

2: To borrow Money on the credit of the United States;

3: To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

4: To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;

5: To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

http://constitutionus.com/

Congress passed the buck to the Fed which is controlled by "experts" from the private sector -- big mistake.

If the Constitution is to be followed because it determines what we should do, then both Krugman and Paul are wrong. Paul is wrong because he doesn't think that the economy is any business of the government and our Constitution clearly states otherwise. Krugman because he delegates too much power to the Fed which is overly privatized.

[banned from Kos]

3. Which one of the Fed Governors come from the private sector?

The three-four that come to mind come from academia or the public sector.

[JDPriestly]

4. Academia is private for the most part. I would not consider state college or university affiliation

to be public in the sense of employees who carry out a government-set economic policy. What do you mean by the public sector?