From The Guardian, lots of detail. Excerpt:
It's Germany on a global scale that is the concern. We worry about the
drag on world demand from the global savings coming out of east Asia
and the Middle East, but within Europe there's a European savings glut
which is coming out of Germany. And it's much bigger relative to the
size of the economy.
PK: “What we know 100% for sure is that the way to get out of a recession is to lower the interest rate, but we’ve lowered the interest rate and we’re still in a recession, so now CATASTROPHE!”
Really? There are only two variables? Recession/Not Recession and Interest Rate? You don’t think people might need some time to adjust to new conditions? To achieve balance in their (badly damaged) budget sheets? To reallocate capital from ex-bubble sectors to up and coming sectors? No?
Damned Germans have always saved too much.
Lowering the interest rate is not alone the way to get rid of recession.. beating recession requires lot other steps like money inflow, growth of economy, inflation, etc.
German consumption is actually growing, so I wonder what Paul Krugman is talking about.
“The two big changes from GWB to Obama I’ve noticed are better foreign policy”
Phil, NOT a way to start off if you want someone to continue reading.
Krugman was interviewed by Will Hutton, who at the least gives himself the airs of being someone who knows what’s going on (e.g. It’s shocking how similar Germany and Japan are!). Does anyone have an opinion on whether he is simply Krugman’s foil (dutiful parrot) or qualified to make some of the supporting assertions he interjects between questions?
I’ll define better as now all Western nations are once again target of terrorist nuke, not just USA, Israel…if it happens it is better that Canada or someone takes it.
An observation is that it is refreshing to see the Huckabee ethic here. No lies. Stated plainly, I get impression MR’s readership overwhelmingly believes small government is good because you don’t trust their spending. Whether right or wrong, you don’t have to waste any effort to unearth ulterior motives.
Republicans are lying about loudly hating Obama; just happy it is another group of rich people being rewarded and not the masses.
Richard Koo and his explanation of “balance sheet recessions” has found a new disciple. Better late than never.
Paul Krugman also stated that he think the U.K. will recover first. Of course, that’s not likely to happen:
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5621678/UK-to-sink-further-into-red-than-any-major-country-warns-OECD.html
Paul Krugman is a left-wing hack with pretensions of being an economist. In his 20+ year career, he has made only one prediction that turned out correct. That was his prediction in the mid 90′ that South East Asian economic growth would stall out because they were not moving up the technology/value added ladder that the Northeast Asians were. This, of course, was obvious to anyone who has actually visited S.E. Asia, particularly Malaysia, and see first hand the character differences between Chinese and Malay people. In other words, Krugman merely echoed an observation that the HBD (human biodiversity) people had been saying for years.
We’re on our way out of recession now which is great to see.
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