Writing in the New York Times, Paul Krugman insists that the US government is not broke. Why? Because it can still borrow money.

Behold the kind of reasoning that passes for Nobel-worthy brilliance on the left:

To put this in context, you have to realize two things about the fiscal state of America. First, the nation is not, in fact, “broke.” The federal government is having no trouble raising money, and the price of that money — the interest rate on federal borrowing — is very low by historical standards. So there’s no need to scramble to slash spending now now now; we can and should be willing to spend now if it will produce savings in the long run.

How’d you like this guy to be your financial advisor?

“Mr. Krugman, I’m broke because I have no money in the bank. I’m $220,000 in debt, and it’s ballooning out of control by the day due to interest and new borrowing. What should I do?”

“Does money still come out of the ATM when you put in your credit card?”

“Yeah.”

“Well then you’re not broke. What’s the problem? Just keep spending and eventually that’ll make everything better.”

(h/t Newsbusters)

Comments

9 Responses to “‘Laugher Curve’ Economist of the Day”

  1. nannykins on March 11th, 2011 2:30 pm

    These east coast elitists think we are so effin' stupid. Fer cryin out loud! We may cling to our guns and bibles – but we do know how to balance a check book!!! And when the balance is -0- we don't spend anymore. Simple, simple, simple. But the likes of Obamao and Krugman think we are clueless and keep repeating this nonsense.

    They can hollar from the top of the white house all they want – but come 2012 they will hear our answer to their stupidity.

  2. Marshall_Will on March 11th, 2011 2:37 pm

    "How’d you like this guy to be your financial advisor?"

    No financial Dream Team would be complete without him! Paul will have handy Social Justice-agenda phrases at the ready like:

    “The fundamental fact of American politics – and I've sharpened my view on this since last year and the hardcover edition of the book – is that we've got an alliance between the religious right and the accumulators of great wealth. Those are the people who are running things.”

    “Can we break the machine that is imposing right-wing radicalism on the United States? The scariest part is that the media is part of that machine.”

    ( As your 'retirement' portfolio slides into oblivion ) All at NO extra charge!

  3. LindaC01 on March 11th, 2011 2:39 pm

    "I can't be overdrawn! I still have checks left!"

    I'm baffled and amused by the whole cavalier attitude of the Left, that more spending and debt will somehow bring about prosperity.

    Makes me wonder how they ran their daily personal household budgets before coming into power….

  4. Marshall_Will on March 11th, 2011 2:43 pm

    “The fact that we're here celebrating Social Security shows some politicians' promises are worth more than others. Social Security as it is currently constituted is very efficient. We're talking about a system that really works quite well.”

    See? Nothing to fear but dog food and newspaper insulation itself! I hear Hoover blankets are really 'quite' comfortable!

  5. Dandapani on March 11th, 2011 3:41 pm

    Uh, hasn't China quit buying our bonds? We are broke. The only reason we have money is that the Feds are printing it.

  6. Marshall_Will on March 11th, 2011 4:13 pm

    And the only question that remains is ( what will they run out of first, paper or 'ink'? )

    Yeah let's not allow the fact we're on the VERGE of losing our status as "reserve currency" muddle our 'thinking'? Once that's no longer an 'issue' no one will give a rosey RIP how much we print 'then'?

    ( Krugman's Ultimate Goal is to turn the U.S into just another 3rd World country that way we'll be 'equal' ) Equally POOR that is! Here's another O'hole that didn't get the memo. Dude, your ( o ) buddy 'already' got Teh One elected ( you can stop SHILLING for him now! ) Have I mentioned I utterly DESPISE Paul Krugman..?

  7. Clu Seatoe on March 11th, 2011 4:54 pm

    Money is cheap right now so if I can do whatever it is that I want to do and do it with someone else’s money and use my money for other things, why not do it?

    In the case of the U.S. government, just fill up the buckets with cheap cash and pour it down the toilets to whichever leftie turds are down there in the cesspool, be they sinkers or floaters, individuals or corporations it doesn’t matter because the result will be the same — the U.S. dollar will be worthless and the U.S. economy will be trashed but at least the lefties will have the cash.

    And we can get this all done with cheap money. Isn’t that worth a Nobel Prize in economics?

  8. Marshall_Will on March 11th, 2011 6:45 pm

    "And we can get this all done with cheap money. Isn’t that worth a Nobel Prize in economics?"

    Uh… Winning! Right Clu, t'were Int. rates in the upper-single/lower-double think we'd have all these Turbo-Tax-Timmy "options"? As is it's like playing w/ a loaded gun.

    Haven't they treated the U.S Economy like an infallible Woolly Mammoth long enough? Oh… reminds me, I gotta' take our grand daughter up to the Zoo so she can 'see' one up close and personal! What's that you say..?

  9. Joe Redfield on March 11th, 2011 9:40 pm

    The more you spend, the more you save! Who suspected it's so simple?

Leave a Reply

You must be logged in to post a comment.