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BA Deere
Honored Advisor

Krugman and 0bama`s Dangerous Austerity Myth

..so says Bill Black, professor of economics and author of "The best way to rob a bank is to own one".  https://www.youtube.com/watch?feature=player_embedded&v=O_uNkA_lap4   Apparently had 0bama listened to Geithner, he would`ve crashed the economy and 0bama`s re election chances. Enter Jack Lew, meet the new boss same as the old boss, now in 0bama`s 2nd term, Lew signals austerity coming.  Ja, as a "Righto" I`ve wanted budget cuts, however I`ve lobbied for "compassionate budget cuts" through means testing and such.  It`s looking like those of you that voted for 0bama to continue your perpetual  "monthly Winnebago fuel check" may be in for a rude awakening.

13 Replies
bruce MN
Advisor

Re: Krugman and 0bama`s Dangerous Austerity Myth

You putting this up here is most perplexing.  Are you saying that you agree with Dr. Black?

 

I've been putting Bill Black links up here for quite some time and don't know if anybody has ever read one.  I've gotten a few responses from people who I can see haven't read them and are just knee jerking to the subject line.

 

Here is Blacks written column on the matter.

 

http://neweconomicperspectives.org/2013/01/krugman-and-obamas-dangerous-austerity-myths.html

 

This RealNews site is a good one.  Hoping that you have it bookmarked and check in often.

 

FWIW this blog post of Krugmans that triggered Black's response here has caused considerable consternation among the progressive philosopher.  It's seen as a piece of extreme backsliding.  As Yves Smith says in her blog about it in the lead to her link of the Black article: 

 

Yves here. I have to confess, it is frustrating to see Krugman say many of the right things but not be willing to go too far field of orthodox thinking.

 

The critics are seeing  Krugman offering an endorsement of inadvisable austerity measures, same as Obama has been doing.

 

Again, do you agree with Bill Black on what should happen on the  policy front, or did you just see a criticism of people (Krugman/Obama) that you have been conditioned to reject or oppose and not actually digest WHY they were being criticized?

bruce MN
Advisor

Krugman getting pummeled

Not by the usual suspects on the right, but by what would have seemed to be his natural constituency:

 

http://www.nakedcapitalism.com/2013/01/bill-moyers-paul-krugman-explains-the-keys-to-our-recovery.ht...

BA Deere
Honored Advisor

Re: Krugman and 0bama`s Dangerous Austerity Myth

Bruce, I can only say what is the "lesser evil" at the given time, for example I recognize the need for revenge by the masses after 911, I said 'slap a dollar gas tax on and after 1 yr they'd have enough of that foolishness' our national debt would be $3 trillion less right now and we'd have more wiggle room. But I'm pragmatist, here we are facing impossible decisions, it' s catch-22 imo. 0bama increased. Entitlements at a time (09) when we should've went into treaj for needed spending. Ja, people are going to be hurt with austerity and 0bama was the greatiest trick pulled on the needy and Jack Lew seals the deal.
bruce MN
Advisor

Re: Krugman and 0bama`s Dangerous Austerity Myth

No comprende.

 

 

BA Deere
Honored Advisor

Re: Krugman and 0bama`s Dangerous Austerity Myth

I was on my phone so the reply didn`t land where it should.  I`m not a student of Bill Black so I can`t tell you how much I agree with him, but in a nutshell he`s saying Geithner wanted austerity measures that would`ve crashed the economy and 0bama`s chance at being re elected.  I agree that as a result of 30 yrs of unbridled free trade too many people are presently dependent on the government.  Therefore of course, any spending that`s cut needs to be done like a surgeon handling sweating nitroglycerin instead of cutting like a bull in a Pottery Barn.  Also austerity is going to hurt and the longer the can is kicked the more it will hurt when it`s time to pay the piper.  Noverber 6th the country decided for more can kicking.  0bama is a lame-duck, Jack Lew is the same as Geithner, so I imagine behind the scenes 0bama wants austerity, it`s just he wants the Republicans to be the fallguy.  That`s why I think the Repubs should be cooperative to the point of getting rid of ownership, because things will crash regardless and 0bama will get his way cause he holds the cards, just make sure that everyone sees that he was the one in the "left seat" when the wreckage is recovered.  ¿Te entiendo?

r3020
Senior Advisor

Re: Krugman and 0bama`s Dangerous Austerity Myth

BA, you are 100% dead on about austerity. It IS going to happen, no way around it. The sooner it happens the less painful it will be. It should have happen instead of TARP, that was over 6 trillion dollars ago, just that much more pain it will bring. We need to freeze the debt ceiling, let it happen now instead of adding another 4-5 trillion in debt to get through the next election.

BA Deere
Honored Advisor

Re: Krugman and 0bama`s Dangerous Austerity Myth

I think our creditors/bartender will cut us off pretty quick here, I wouldn`t loan this country money for only a prime rate of return.  The Chinese kind of have a problem, if they cut us off too quick and the dollar tumbles, the debt we owe them already will be devalued.  Behind the scenes the fed is buying it`s own debt (no one else will) the Chinese are quitely buying gold to hedge all this bad debt.  When you hear talk of "titanium trillion dollar coin" that means things are really close.  I really do feel sorry for some of these older folks that lost their investments and have to go back to work to suppliment their social security.  I just wish we could keep things together as long as we can for those folks.  0bamacare taxes and the payroll tax is going to hit alot of people that live paycheck to paycheck.  Unfortunately November 6th voters were selfish and this isn`t going to end pretty. 

bruce MN
Advisor

Re: Krugman and 0bama`s Dangerous Austerity Myth

Not  really at all. Sorry.

 

Geithner wanted extreme austerity right off.  Except for the banks.  Obama is proving at every turn to have accepted that and has stayed the course.

 

And just to clear things up, TARP came under Bush.  But then, if the bubble would have waited a few months to pop, McCain would have won and he'd have signed TARP.  Not a lickof difference between the lot of them.  For to be honest, neither of the 3 of them is or would have been in charge of or had any effective say in anysuch decision making. More than a few people were in hopes that Obama might actually be what it was being portrayed as he campaigned that he might be and held out some hopes that he would assert himself, but no such luck fpr them and, as Black points out well, it isn't anything he ever believed in then or believes in today.  Just another corporatist/bankster President like we've had for almost 35 years now.  Reagans people even knew better than to do what the GOP is holding the system hostage to and that this Admisitration is perpetually prepared to capitulate to today. 

 

The general Obama criticisms that are out there from the right are based on assumptions and presumptions as to what a progressive/populist/liberal...whatever you want to use...might or would be expected to do.  On matters of fiscal and monetary policy he is none of those. He's done little of that. And is now pushing for considerable levels of forced austerity.  That is what Black is talking about .  That and the fact that Krugman supported it wholy in the columnis what triggered Black's criticism of him.

 

 

gough whitlam
Senior Contributor

Re: Krugman and 0bama`s Dangerous Austerity Myth

FWIW - They will raise the debt ceiling to the amount necessary.  The debt which will acrue until the next election will matter nothing at the next election. People do not vote because the debt is big or little. They vote along with their party of choice, like you guys do.

 

Obama will be given the money which he wants to stimulate the economy because the repigs are so on the nose for opposing everything, they do not want to slide into oblivion at the next election. Sounds too simplistic but it is true.  After there election defeat they have discovered they are not the party of natural government. All the huffing and puffing coming from the Hill is pure wind.  They do not have the guts to send the country down the tube purely because of politics.

 

As for the gun nuts taking up arms against the "rogue" government, the sun will rise in the west before that will happen.