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Biotech / Medical : 2012 Biotech Charity Contest -- Ignore unavailable to you. Want to Upgrade?

To: BulbaMan who wrote (317)	6/26/2012 9:04:50 PM
From: Steve Lokness	Read Replies (2) \| Respond to of 513

<<<<<But the claim that the kind of Keynesian stimulus spending people like Krugman recommend would lead to Weimar-like hyperinflation is way off base.>>>>> Fascinating comment. Remembering that Krugman was (and continues to) arguing for a stimulus plan that was three times the size of the one that Obama adopted, we just don't know what would have happened had his ideas been enacted. Krugman argues it would have spurred the economy back - I disagree. I disagree because I don't think we could have continuously created the type of demand that was artificially created during the housing boom. It's not the stimulus that creates hyperinflation, its the printing of money to pay off our bills that 'could'. I believe that if our debt gets so high that China (and others) won't lend us money, we will have a few choices but none of them good. One is to massively tighten our belts like is being suggested for the European countries, another is to pay the increasingly high interest rates demanded by those lending us money, or print our way out - inflate our way out. Germany did it (printed) because they couldn't pay their reparation bills - how is it any different if your bill is caused by money you borrowed and you can't pay that back? BTW, I do believe we should spend on infrastructure. Spend to make America more competitive (green power, energy efficiencies, rapid transportation etc.). But we should pay for it as we go. That will mean some pain for all of us, but maybe better a little now than a lot latter?