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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: JohnM who wrote (147848)	10/22/2010 4:26:39 PM
From: Steve Lokness	Read Replies (4) \| Respond to of 542502

John; Excellent KRUGMAN column this morning You always say that. Darn that stupid British government and their foolish effort to reign in spending. Yup, everyone's stupid - except krugman of course. But the best guess is that Britain in 2011 will look like Britain in 1931, or the United States in 1937, or Japan in 1997 Krugmans mind can't go backward. What all three of these things had in common was that they followed immense bubbles. The problem was NOT how the problem was addressed but the cause of the problem in the first place. Krugman conveniently leaves out the US in the years between 1929 and 1936. And 1937 was but the tiniest of blips and in any case the US still had a lost decade didn't it? Japan tried for a decade to bring back prebubble economies with stimulus after stimulus creating the huge hole of debt they now have. They drove interest to zero and still no economic return. (Austrian economics predicts and can explain this though) And whatever happened to the US in 2009? Didn't Krugman use the same fear tactic that we were headed for the morass of economic dust if we didn't stimulate three times what we did? Trust me Krugman says, a huge stimulus can't work but a world shattering tsunami of spending and impossible debt levels is just the ticket. Well those countries like Greece and Iceland got where they are just by spending way beyond their means to pay it back. They are being rescued by the conservative powerhouses of Europe - Germany. And we know Germany has bounced back fast and first. Steve

To: JohnM who wrote (147848)	10/22/2010 7:53:05 PM
From: Steve Lokness	Respond to of 542502

As always, those who refuse to learn from the past are doomed to repeat it. I am reading the Black Swan and there is a line that caught my attention as I believe in the importance of history. It was that the French remembering WWI as an important history lesson created the Maginot Line to stop the Germans. History did the French no good as the Germans using new warfare just went around the Maginot line and walked into France. The French learned from history but failed to understand that history doesn't repeat - it rhymes.