Monday, September 5, 2011

The Fatal DistractionBy PAUL KRUGMAN

Friday brought two numbers that should have everyone in Washington saying, “My God, what have we done?”  No Paul, you stupid Socialist idiot, you and yours have done.  You had your chance, you had your stimulus, you had both houses of Congress, you had your Messiah.
One of these numbers was zero — the number of jobs created in August. The other was two — the interest rate on 10-year U.S. bonds, almost as low as this rate has ever gone. Taken together, these numbers almost scream that the inside-the-Beltway crowd has been worrying about the wrong things, and inflicting grievous harm as a result.   So we don't need to worry about borrowing 40% more than we take in, everyday?!  And we are not talking about small numbers Paul, you dipstick, we are talking about generational bankruptcy.
Ever since the acute phase of the financial crisis ended, policy discussion in Washington has been dominated not by unemployment, but by the alleged dangers posed by budget deficits. Pundits and media organizations insisted that the biggest risk facing America was the threat that investors would pull the plug on U.S. debt. For example, in May 2009 The Wall Street Journal declared that the “bond vigilantes” were “returning with a vengeance,” telling readers that the Obama administration’s “epic spending spree” would send interest rates soaring.   OK Paul, you idiot, interest rates remain low because there is no economic activity, because... people and business are scared that idiots like you might remain in charge.  Hey Paul!  Got a better explanation?  Oh, that is right, we just need to spend more money we don't have building roads and bridges, that is the cutting edge economic management we need!

I don’t mean to dismiss concerns about the long-run U.S. budget picture. If you look at fiscal prospects over, say, the next 20 years, they are indeed deeply worrying, largely because of rising health-care costs. Here is the kicker, the Liberal/Socialist Judo that allows them to sleep at night after imposing a repeatedly failed economic model (see Germany, USSR, heck even England) on our country.  See how Paul, the idiot, slips in rising health care costs, implying that we need to implement health care reform, but what Paul conveniently omits (OK, lies about) is that it is not health care, it is the coming, and all the world can see it is coming, explosion in entitlement programs, any reform of which his party vehemently protests, that are the reason for our gargantuan present and more importantly upcoming deficits.  That and the wasted spending of the current administration.    The experience of the past two years has overwhelmingly confirmed what some of us tried to argue from the beginning: The deficits we’re running right now — deficits we should be running, because deficit spending helps support a depressed economy — are no threat at all.

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