Paul Krugman On China Buying America's Debt

-------- Original Message --------

Subject:	Krooksman On China
Date:	Mon, 15 Mar 2010 10:36:02 -0700
From:	Jas Jain <jas_jain@hotmail.com>
To:	Jas Jain <jas_jain@hotmail.com>

Does Krooksman know better what is good for China than the Chinese technocrats? Paul Krooksman, like every other born-and-bred American dope, has predilection for blaming others—other countries, other religions, other party, other groups, etc., etc. Of course, Krooksman knows how to solve problems of the world economy, of the US economy, and pretty much any other socio-economic problem that faces America. He is an egomaniac in the same league as Alan Greenspan and Ben Bernanke, the source of many of the problems in the world economy today, who believe that they can manipulate the US economy and even the world economy. For whose benefit?! That they never talk about.

The so-called economic imbalances in the world economy were created under Greenspan-Bernanke policies of Pushing Debt on American households and future taxpayers. China had nothing to do with except that it took advantage of the conditions that were created by American policymakers. Krooksman also supports Pushing Debt on future taxpayers. There cannot be any hope for better America with people like Bernanke and Krooksman in positions of power and influence. They are the problem. All of America's problems have been caused by Americans. No need to waste time by looking at outsiders.

 

It is the debt, stupid!

Jas

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http://economistsview.typepad.com/economistsview/2010/03/paul-krugman-taking-on-china.html#comments

Mar 15, 2010

Paul Krugman: Taking on China

Paul Krugman says it's time to take a stand against China's currency policy:

Taking on China, by Paul Krugman, Commentary, NY Times: Tensions are rising over Chinese economic policy, and rightly so: China's policy of keeping its currency, the renminbi, undervalued has become a significant drag on global economic recovery. Something must be done. ...

Today, China is adding more than $30 billion a month to its $2.4 trillion hoard of reserves. ... This is the most distortionary exchange rate policy any major nation has ever followed.

And it's a policy that seriously damages the rest of the world. Most of the world's large economies are stuck in a liquidity trap — deeply depressed, but unable to generate a recovery by cutting interest rates because the relevant rates are already near zero. China, by engineering an unwarranted trade surplus, is in effect imposing an anti-stimulus on these economies, which they can't offset.
...

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Kirk Here:  I posted a short question on Paul Krugman's blog asking what happens when dumb money stops flowing out of money market funds into bond funds and the Fed stops buying bonds and rates start to go up?  Will you discover that water pistol is filled with lye?  They (the NY Times) did not post my question!

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