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Krugman’s Crazy

Some questions for Keynesians and Krugmanites everywhere:

1.   Krugman often says debt doesn’t matter that much because “we owe it to ourselves“.  OK, well then why don’t we just default?  Isn’t it all just book-keeping entry?  Why can’t we cancel the debt if we owe it to ourselves?

2.  What happens when government stimulus ends?  Say we have a cash for clunkers program.  Cash is spent on new cars.  Everyone has a new car.  What then?  Won’t the car market completely crash then?

3.  How does more debt solve a debt problem?

4.  If printing paper worked to increase economic growth, why isn’t everyone rich around the world?

5.  How can you say inflation is low because of low interest rates when everyone knows bond yields are kept artificially low by central bank buying through QE?  Isn’t that like breaking the thermometer and then saying no one has a temperature?

6.  When does the government spending end?  Does it ever?

7.  Why not call for the banks to be nationalized?

8.  What happened to the trillion dollar coin idea?  Why go quiet on that great idea now?

9.  What is the meaning of “malinvesment” and where does malinvestment come from?

10.  Did you or did you not support an asset bubble in housing to compensate for the bursting of the tech bubble?  Yes or no?  If no, what do you say to this?

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