Home › Forums › Financial Markets/Economics › Paul Krugman has officially lost all credibility
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briansd1.
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October 13, 2009 at 1:26 PM #468983October 13, 2009 at 1:40 PM #468163
briansd1
Guest[quote=Rich Toscano] I agree that no dramatic consequences have happened yet, but I believe they are baked into the cake and that Krugman-esque policy will eventually be looked at as a giant, tragic mistake.
Rich[/quote]
Yes, but when will the tragic mistake make itself known? That is the question.
I hope that all the bailouts and low interest rates will bring some semblance of recovery and dynamism by 2012 because I want Obama to get reelected.
We’ll let the next Republican president eat the cake. haha. π
October 13, 2009 at 1:40 PM #468346briansd1
Guest[quote=Rich Toscano] I agree that no dramatic consequences have happened yet, but I believe they are baked into the cake and that Krugman-esque policy will eventually be looked at as a giant, tragic mistake.
Rich[/quote]
Yes, but when will the tragic mistake make itself known? That is the question.
I hope that all the bailouts and low interest rates will bring some semblance of recovery and dynamism by 2012 because I want Obama to get reelected.
We’ll let the next Republican president eat the cake. haha. π
October 13, 2009 at 1:40 PM #468704briansd1
Guest[quote=Rich Toscano] I agree that no dramatic consequences have happened yet, but I believe they are baked into the cake and that Krugman-esque policy will eventually be looked at as a giant, tragic mistake.
Rich[/quote]
Yes, but when will the tragic mistake make itself known? That is the question.
I hope that all the bailouts and low interest rates will bring some semblance of recovery and dynamism by 2012 because I want Obama to get reelected.
We’ll let the next Republican president eat the cake. haha. π
October 13, 2009 at 1:40 PM #468776briansd1
Guest[quote=Rich Toscano] I agree that no dramatic consequences have happened yet, but I believe they are baked into the cake and that Krugman-esque policy will eventually be looked at as a giant, tragic mistake.
Rich[/quote]
Yes, but when will the tragic mistake make itself known? That is the question.
I hope that all the bailouts and low interest rates will bring some semblance of recovery and dynamism by 2012 because I want Obama to get reelected.
We’ll let the next Republican president eat the cake. haha. π
October 13, 2009 at 1:40 PM #468988briansd1
Guest[quote=Rich Toscano] I agree that no dramatic consequences have happened yet, but I believe they are baked into the cake and that Krugman-esque policy will eventually be looked at as a giant, tragic mistake.
Rich[/quote]
Yes, but when will the tragic mistake make itself known? That is the question.
I hope that all the bailouts and low interest rates will bring some semblance of recovery and dynamism by 2012 because I want Obama to get reelected.
We’ll let the next Republican president eat the cake. haha. π
October 13, 2009 at 1:45 PM #468168Eugene
Participant[quote=briansd1]
I said that we will be less rich relative to others. American tourists won’t feel rich when they travel abroad. [/quote]True, American tourists will feel less rich. That’s the price of weaker dollar.
In many countries, they feel less and less rich anyway. Russia has had 10% inflation for the last decade. Meaning that prices of everything go up 10%/year and exchange rate stays the same. The cheapest decent hotel in Moscow is $150/night. The standard bribe to avoid prosecution for DUI is ~$500. When I go there, I don’t feel particularly rich.
[quote]
American power (economic and military) is a function of how much superior we are to others. As our currency erodes, our world dominance and influence will erode as well. [/quote]Superiority is about skills, technologies, and capital, not relative prices of hotel rooms. Arguably, what’s gained from the cheap gas for SUVs and cheap entertainment for tourists is more than offset by skills and capital that was lost when manufacturing was outsourced to China.
October 13, 2009 at 1:45 PM #468351Eugene
Participant[quote=briansd1]
I said that we will be less rich relative to others. American tourists won’t feel rich when they travel abroad. [/quote]True, American tourists will feel less rich. That’s the price of weaker dollar.
In many countries, they feel less and less rich anyway. Russia has had 10% inflation for the last decade. Meaning that prices of everything go up 10%/year and exchange rate stays the same. The cheapest decent hotel in Moscow is $150/night. The standard bribe to avoid prosecution for DUI is ~$500. When I go there, I don’t feel particularly rich.
[quote]
American power (economic and military) is a function of how much superior we are to others. As our currency erodes, our world dominance and influence will erode as well. [/quote]Superiority is about skills, technologies, and capital, not relative prices of hotel rooms. Arguably, what’s gained from the cheap gas for SUVs and cheap entertainment for tourists is more than offset by skills and capital that was lost when manufacturing was outsourced to China.
October 13, 2009 at 1:45 PM #468709Eugene
Participant[quote=briansd1]
I said that we will be less rich relative to others. American tourists won’t feel rich when they travel abroad. [/quote]True, American tourists will feel less rich. That’s the price of weaker dollar.
In many countries, they feel less and less rich anyway. Russia has had 10% inflation for the last decade. Meaning that prices of everything go up 10%/year and exchange rate stays the same. The cheapest decent hotel in Moscow is $150/night. The standard bribe to avoid prosecution for DUI is ~$500. When I go there, I don’t feel particularly rich.
[quote]
American power (economic and military) is a function of how much superior we are to others. As our currency erodes, our world dominance and influence will erode as well. [/quote]Superiority is about skills, technologies, and capital, not relative prices of hotel rooms. Arguably, what’s gained from the cheap gas for SUVs and cheap entertainment for tourists is more than offset by skills and capital that was lost when manufacturing was outsourced to China.
October 13, 2009 at 1:45 PM #468781Eugene
Participant[quote=briansd1]
I said that we will be less rich relative to others. American tourists won’t feel rich when they travel abroad. [/quote]True, American tourists will feel less rich. That’s the price of weaker dollar.
In many countries, they feel less and less rich anyway. Russia has had 10% inflation for the last decade. Meaning that prices of everything go up 10%/year and exchange rate stays the same. The cheapest decent hotel in Moscow is $150/night. The standard bribe to avoid prosecution for DUI is ~$500. When I go there, I don’t feel particularly rich.
[quote]
American power (economic and military) is a function of how much superior we are to others. As our currency erodes, our world dominance and influence will erode as well. [/quote]Superiority is about skills, technologies, and capital, not relative prices of hotel rooms. Arguably, what’s gained from the cheap gas for SUVs and cheap entertainment for tourists is more than offset by skills and capital that was lost when manufacturing was outsourced to China.
October 13, 2009 at 1:45 PM #468994Eugene
Participant[quote=briansd1]
I said that we will be less rich relative to others. American tourists won’t feel rich when they travel abroad. [/quote]True, American tourists will feel less rich. That’s the price of weaker dollar.
In many countries, they feel less and less rich anyway. Russia has had 10% inflation for the last decade. Meaning that prices of everything go up 10%/year and exchange rate stays the same. The cheapest decent hotel in Moscow is $150/night. The standard bribe to avoid prosecution for DUI is ~$500. When I go there, I don’t feel particularly rich.
[quote]
American power (economic and military) is a function of how much superior we are to others. As our currency erodes, our world dominance and influence will erode as well. [/quote]Superiority is about skills, technologies, and capital, not relative prices of hotel rooms. Arguably, what’s gained from the cheap gas for SUVs and cheap entertainment for tourists is more than offset by skills and capital that was lost when manufacturing was outsourced to China.
October 13, 2009 at 2:08 PM #468173meadandale
Participant[quote=Eugene]
Yes – some imports will be more expensive, but imports aren’t a big spending category in anyone’s budget. (You’ll have to pay $30 instead of $20 for a pair of jeans! The horror!) [/quote]This is naive thinking at best.
Many people in this country shop at Wally World, or a similar equivalent. Most of the merchandise in these stores is imported. We also rely heavily on imported produce from the southern hemisphere and may increase our dependence on them now that CA is rationing water to the central valley and CA agriculture is literally drying up.
The good ‘ol US of A manufactures very little anymore..when we are buying all this stuff overseas with a devalued dollar your standard of living will most certainly drop…unless you are invested in foreign markets and currencies.
October 13, 2009 at 2:08 PM #468356meadandale
Participant[quote=Eugene]
Yes – some imports will be more expensive, but imports aren’t a big spending category in anyone’s budget. (You’ll have to pay $30 instead of $20 for a pair of jeans! The horror!) [/quote]This is naive thinking at best.
Many people in this country shop at Wally World, or a similar equivalent. Most of the merchandise in these stores is imported. We also rely heavily on imported produce from the southern hemisphere and may increase our dependence on them now that CA is rationing water to the central valley and CA agriculture is literally drying up.
The good ‘ol US of A manufactures very little anymore..when we are buying all this stuff overseas with a devalued dollar your standard of living will most certainly drop…unless you are invested in foreign markets and currencies.
October 13, 2009 at 2:08 PM #468714meadandale
Participant[quote=Eugene]
Yes – some imports will be more expensive, but imports aren’t a big spending category in anyone’s budget. (You’ll have to pay $30 instead of $20 for a pair of jeans! The horror!) [/quote]This is naive thinking at best.
Many people in this country shop at Wally World, or a similar equivalent. Most of the merchandise in these stores is imported. We also rely heavily on imported produce from the southern hemisphere and may increase our dependence on them now that CA is rationing water to the central valley and CA agriculture is literally drying up.
The good ‘ol US of A manufactures very little anymore..when we are buying all this stuff overseas with a devalued dollar your standard of living will most certainly drop…unless you are invested in foreign markets and currencies.
October 13, 2009 at 2:08 PM #468786meadandale
Participant[quote=Eugene]
Yes – some imports will be more expensive, but imports aren’t a big spending category in anyone’s budget. (You’ll have to pay $30 instead of $20 for a pair of jeans! The horror!) [/quote]This is naive thinking at best.
Many people in this country shop at Wally World, or a similar equivalent. Most of the merchandise in these stores is imported. We also rely heavily on imported produce from the southern hemisphere and may increase our dependence on them now that CA is rationing water to the central valley and CA agriculture is literally drying up.
The good ‘ol US of A manufactures very little anymore..when we are buying all this stuff overseas with a devalued dollar your standard of living will most certainly drop…unless you are invested in foreign markets and currencies.
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