The Long Road Ahead by Paul Krugman

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Subject:	FWC: The Long Road Ahead by Paul Krugman
Date:	Sun, 2 Jan 2011 12:29:37 -0800
From:	Jas Jain

FWC: The Long Road Ahead by Paul Krugman

"…unemployment would be close to 8 percent at the end of 2012, and wouldn't get below 6 percent until midway through Sarah Palin's first term."

 

Which road are we talking about? This guy, Krooksman, is an agent of the Debt Pushers and fully deserves to be condemned with harshest language. The first commentator, appended, is right. I am no fan of Sarah Palin, but she is a far superior economist than Krooksman! The US economy is not on any "road;" it is in a ditch. Only a dumb ass like you thinks that an 8-10% debt-financed stimulus to get a 2-3% growth is a recovery; no, you dope, the US economy is still in the ICU, i.e., is in a ditch. Your guy, Oh-bamba, is only digging the ditch and getting the American "economy" in a deeper hole. I realize that you make a living being an intellectual whore, but to get out of the hole you must stop digging first, no? You are not an economist; you are a profligate! Live with that. Your Nobel Prize is no more deserving than Obama's! You both are serving the interests of the Crooks and that is the only reason for the prize. So, don't delude yourself with any grandeur. And you claim to have a conscience. Have you no shame?! You are a hardcore Communist disguising as a Progressive. Be a man and say that you are a born-and-bred Communist. Hack, that is an insult to Communists in China who understand capitalism far better than you do.

Jas

PS: There has been lot of very fine discrediting of Krooksman in comments over the past year or so, but many American dopes are impressed with the credentials. He is by far the worst of the lot of American e-CON-omists. He is a conman, alright. Aren't Americans "lucky!"

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http://krugman.blogs.nytimes.com/2011/01/01/the-long-road-ahead/

January 1, 2011, 9:24 am

The Long Road Ahead by Paul Krugman

…

So, suppose that US growth is accelerating. Even so, it will take years of high growth to get us back to anything resembling full employment. Put it this way: suppose that from here on out we average 4.5 percent growth, which is way above any forecast I've seen. Even at that rate, unemployment would be close to 8 percent at the end of 2012, and wouldn't get below 6 percent until midway through Sarah Palin's first term.

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"1.ndspinelli, usa; January 2nd, 201, 5:19 am: We are in a perfect storm. Capitalism has created a consumer culture in the US that has been fueled by credit. Individuals and government have lived above their means, and our children will be worse off then us baby boomers. Professor Krugman wants the government to continue this quixotic journey. It simply won't work."

Greater Depression Yet to Come

Saturday, January 01, 2011
My Portfolios at All Time Highs as we Enter 2011

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Subject:	FWC: Prosperity, Real or Imagined
Date:	Sun, 2 Jan 2011 11:11:41 -0800
From:	Jas Jain

Appended is a review of Inflated: How Money and Debt Built the American Dream by R. Christopher Whalen.

As those who have read my commentaries for more than a dozen years, with my signature slogan "It Is the Debt, Stupid!," know that the US has "enjoyed" an artificial growth via debt-induced consumption. All the GDP growth in the US economy since 1997, and more!, has been a result of  consumption by Americans of stuff produced outside the US of A with borrowed money. The arithmetic is plain and simple: 8-9% annual rate of debt-based consumption, funded by both private and public debt, to get 2-3% annual rate of GDP growth. Chinese could hardly thank Americans enough for turning China into a real contender for the largest economy in another 10-15 years. Even Indians are thankful for the thoughtless American profligacy. America ceased to have an economy; it has created profligacy! You ain't seen nothing during 2001-2010. The worse is yet to come. Lot worse, as in Greater Depression.

Jas

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Prosperity, Real or Imagined:

http://www.nytimes.com/2011/01/02/business/02shelf.html?_r=1&partner=rss&emc=rss&pagewanted=print

January 1, 2011

Prosperity, Real or Imagined

By NANCY F. KOEHN

"THE past is never dead," William Faulkner wrote in 1951. "It's not even past." Six decades later, R. Christopher Whalen takes up the gauntlet implied in those words in "Inflated: How Money and Debt Built the American Dream" (John Wiley & Sons, $34.95).

Mr. Whalen, a consultant and former investment banker, marches zealously back in time to try to understand the long-term viability of the American economy in the wake of the 2008 financial crisis.

The author sees a conflict at the heart of Americans' attitudes toward money and debt. We tend to view ourselves "as reasonably prudent and sober people," he writes, while "the choices we make at the ballot box seem to be at odds with that self-image."

"As a nation," he says, "we seem to feel entitled to a national agenda and standard of living that is beyond our current income."

To finance these expectations, we have continued to borrow extensively from the future — think subprime mortgages, household credit card balances, the federal debt, the trade deficit and more — with turbulent and, at times, nearly disastrous results.

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