LAR: Krugman's contradict
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March 13, 2012 New York Times columnist: "running deficits in good times can get you in trouble" but if you get in trouble, don't cut spending. President Obama seems to need the teleprompter and Presidential candidate Rick Santorum believes the prompter should be illegal. This idea could lead to bad things! Then again, the President having a prompter has led to bad things. Ease their pain?! One stop shop for talkers. Krugman's contradiction  By Bill Wilson Leave it to the New York Times' Paul Krugman to find a tautological rationale for never cutting spending. Writing March 11 on the ?105 billion default of Greece, Krugman warns U.S. policymakers against "trying to reduce deficits too quickly, while the economy is still deeply depressed". Krugman is resisting the often-made comparison between the United States' trillion-dollar annual record deficits and Greece's own predicament. It has been suggested that, through our profligacy here, the default there is an outcome we are inevitably risking. "Not a day goes by without some politician or pundit intoning, with the air of a man conveying great wisdom, that we must slash government spending right away or find ourselves turning into Greece, Greece I tell you," Krugman mockingly reflected. Austerity, Krugman maintains, is the reason Greece has been unable to pull out of its current debt-induced economic malaise. He warns that "trying to eliminate deficits once you're already in trouble is a recipe for a depression." Instead, he proposes that Greece and other troubled sovereigns "have no good alternatives short of leaving the euro, an extreme step that, realistically, their leaders cannot take until all other options have failed". On that count, we actually agree with Krugman. A default followed by debt restructuring in a new currency was always the optimal solution to Greece's self-imposed fiscal troubles. All the current bailout regime achieves is transferring the risk of issuing debt from European banks to stronger countries in the euro system, the European Central Bank (ECB), and the International Monetary Fund (IMF), which U.S. taxpayers fund. But, default could be avoided, Krugman says, if Germany and the ECB would just take action "by demanding less austerity and doing more to boost the European economy as a whole". In other words, if Berlin and Frankfurt (where the ECB is headquartered) would only agree to perpetually print as much money as is necessary to finance the deficits of Greece, Spain, and others, there would never need to be any need to cut spending. This is where we part ways with Krugman. Borrowing more money from markets than could possibly be sustained was how Greece got into this mess in the first place, something Krugman is forced to acknowledge: "running deficits in good times can get you in trouble - which is indeed the story for Greece". Video: Santorum Says The Prompter Should Be Illegal, Obama Would Be In Trouble Video by Frank McCaffrey  Obama promises to close Gitmo.builds a $750 thousand soccer field there instead  By Rebecca DiFedeWhile campaigning in 2008, one of Obama's main running points was that he was going to close the notorious terrorist detainee camp at Guantanamo Bay. For years Democrats have cried out about the supposed "atrocities" that the United States has committed against those that are being held there, and were relieved when the Senator from Illinois promised to shut it down for good. However, true to form, our illustrious president has found keeping this promise to be impossible and has kept the detention center open and running. Not only that, but in his new defense budget he has proposed a $750 thousand project for the inmates, in the form of a brand-new soccer field. In his ongoing quest to go against all logic and reason, Obama has really outdone himself this time. Instead of closing down an institution which houses some of the United States' most dangerous enemies, he has endeavored to turn it into some sort of terrorist sleep away camp. This new field will be in addition to the other two recreation fields in the Camp 6 area of Guantanamo Bay, which apparently houses "highly compliant" prisoners. What's next, an arts and crafts building? The issue that seems to be escaping the minds of the Obama Administration is that the people who are detained at Gitmo are not simply there because the U.S. felt like paying to feed and house them. ALG features radio interviews on new broadcast media page  We appreciate your having us on your airwaves and to add additional value we have launched a new broadcast media page that features audio files from recent radio interviews with Americans for Limited Government (ALG). You can help us promote your show by providing an audio file that we can then link to our site whenever we are a guest. Other items included on this new web page are ways to sign up for our press releases and the ALG Minute. The ALG minute is a special one-minute audio clip on the hot issues facing the nation from a fiscally conservative perspective. It features ALG experts discussing the issues of the day in a ready-to-use, one-minute package. All ALG products are free to use at your convenience. This new page can be found at: http://netrightdaily.com/ Should you have any questions or suggestions, please contact rrast@getliberty.org. |
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