Fwd: Re: FWC: Krugman vs. Greenspan

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

Subject:	Re: FWC: Krugman vs. Greenspan
Date:	Tue, 22 Jun 2010 08:39:53 -0700
From:	Jas Jain

Krugman vs. Greenspan

Sabri: "What is wrong with Krugman's arguments? It is time for the European governments to run large deficits, is it not? Now, being a socialist, I don't think this will solve the systemic problems, but austerity will make things much worse, deepening the ongoing global depression. Just as individuals suffer from psychological problems, societies can too, and the European ruling classes seem to suffer from paranoia: they think that they are being followed; followed by a ghost called inflation. What inflation?"

Dear Sabri,

Inflation has nothing to do with the debate and the deflationary force, on which we both agree, is not an excuse to support bad govt policies. You seem to be supporting the neo-Keynesian line to manipulating the economy. The reason the Western democratic economies are in a trap that leads directly to depression is because the adjustment process was never allowed to work thru and correct problems at early stage of the process. There is a severe future cost to all govt interventions in the economy and that means that such interventions should be used only under extreme conditions. There was no economic emergency when Bush first cut taxes and later sent checks for people to spend money now, all to get the economy going for the next quarter, or next year. This short-term orientation is like a chronic disease that is made worse by the democratic system. The govt intervention has now become a constant process and the problems created by borrow-and-spend now and worry about it later is not going to be solved by more of the same. At some point the reality would assert itself and the govt policy of borrow-and-spend would be terminated by the private economy including the so-called bond vigilantes. Krooksman is an absolute economics moron and you seem to keep forgetting the fact that he is also a born-and-bred American dope. Another idiot, Robert Reich, has come to Krooksman's defense. Neo-Keynesianism is a religion, with Krooksman being the current pope, just like democracy is a religion, both operating on blind faith in false gods. Misery awaits those that put their faith in false gods! There is next-to-nil probability of Americans avoiding misery over the next few decades. Looking for solutions from morons like Krooksman is a sign for desperation. Americans and all Western democracies need austerity and it can't begin too soon.

Jas