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Politics : View from the Center and Left
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To: JohnM who wrote (104318)2/16/2009 4:19:43 PM
From: Steve Lokness  Read Replies (1) of 541957
 
John;

I just do not understand Krugman. He says we are in trouble because we borrowed too much, but then goes on to say the way out of our mess is to borrow more - lots more? He is right on about the worth of the American family, but the cause of that is the borrowing from tomorrow for our lifestyle today.

Then reality struck, and it turned out that the worriers had been right all along. The surge in asset values had been an illusion — but the surge in debt had been all too real.

Frankly, I think Krugman is seeing his beliefs go up in smoke and is trying to find some way to salvage his theories. We've been at war the last 7 years under Bush - wouldn't that have made some difference by now? What do we do move into the galaxy to find enough ways to throw money down a rat hole called war?

Perhaps one of the biggest missperceptions Krugman has is where our debt today is placed. In WWII, I suspect most of any debt incurred was from the American's - remember war bonds? Today, our debt, our payments for the interest on the money we borrow, to a large extent goes to our enemies. So Krugman is saying, lets make our enemies and competitors stronger? What possible good can come out of that? Ask Paul for me will you?

steve
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