Why does Paul Krugman have such a poor grasp of even basic economics?

Question

http://www.youtube.com/watch?v=11WlFlO_mDg

Peter Schiff, the investor who correctly predicted the current economic crisis, deals with Krugman's latest nonsense in this video.

Krugman is saying that the Chinese dumping our debt won't be a problem. The Fed can just print the money. Furthermore, Krugman actually believes that inflation is caused by low unemployment. Krugman says that China would be hurt if they dumped our debt, even though China is the country that is lending us money to purchase their products. Krugman actually thinks that monetizing the debt would be a good thing, as the trade deficit would go down (he is right that the trade deficit would go down, but not because of increased American exports, but rather decreased American imports).

Obviously, "inflation is always and everywhere a monetary phenomenon," as any good economist knows. If the Fed were to monetize the debt, we might see a hyperinflation (this is what happened in Weimar Germany when their central bank monetized their debt from WWI). Obviously, if China dumped our debt, they would no longer be able to export to our country. However, their own people would benefit greatly from purchasing all the products that they produce ("supply creates its own demand").

In a few years from now, as this Depression deepens, we will probably see the policies that Krugman is advocating put into practice. When his proposals lead to the ruin of our nation, I hope the socialists at the Sweden Central Bank take back Paul Krugman's Nobel Prize. He is probably even less deserving of his Nobel Prize than Obama.

Answer 1

Where's your Nobel Prize in Economics? Oh that's right you don't have one. Degrees from Yale and MIT and oh boy a professor at Princeton. It seems like Mr. Krugman knows a bit more about Economics then you do.

Answer 2

Well, that is what Schiff says. If Schiff is smarter than a Nobel laureate, why did some of his clients lose 70% by following his advice. http://www.businessinsider.com/2009/1/peter-schiffs-clients-got-hosed-this-year-too

Answer 3

You do comprehend Barney Frank (gay) allowed Fannie Mae and Freddie Mac to bankrupt the U. S. with socialism? whilst the banks no longer feared dropping their very own funds (simply by fact it grow to be the taxpayers), they no longer had concern in greed. concern in dropping all their very own funds. The banks are nevertheless bancrupt. in basic terms simply by fact the U. S. greenback is the reserve foreign places funds of the worldwide does no longer mean the basics of the financial gadget do no longer play out.....they continually do: See the debt crumple of 2008. wager what the subsequent debt crumple is going to look like?

Answer 4

I have a theory on Paul Krugman. He isn't actually a liberal. He just sees that there are very few liberal political writers so he decided to be that guy, since there is a little bit of money to be made. As we all know, the liberal writers all get into celebrity gossip, fashion and music.