Paul Krugman has officially lost all credibility

[briansd1]

[quote=Eugene]
Did American standard of living fall through the floor after Plaza Accord of 1985, when a bunch of bankers of the world came together and decided officially to devalue the dollar 2.5 times? [/quote]

I didn’t say that Eugene.

Our standards of living did not fall and I don’t expect our standard of living to significant fall either.

I said that we will be less rich relative to others. American tourists won’t feel rich when they travel abroad.

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.

Others will rise. We will remain the same. Psychologically, and ideologically we will feel diminished.

[briansd1]

[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. 🙂

[briansd1]

[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. 🙂

[briansd1]

[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. 🙂

[briansd1]

[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. 🙂

[briansd1]

[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. 🙂

[Eugene]

[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.

[Eugene]

[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.

[Eugene]

[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.

[Eugene]

[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.

[Eugene]

[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.

[meadandale]

[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.

[meadandale]

[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.

[meadandale]

[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.

[meadandale]

[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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