So, never then?

Krugman is much like Chomsky - very interesting academic work but usually not too bright on politics

though this post is correct

finito in uno

In order to recover you have to move forward, not backwards, not to the side, not forwards, but always whirling, whirling, whirling towards freedom!

/Palin is Peggy Hill

fta The implications for Fed policy are also striking. If we use a Taylor rule that suggests zero rates until the unemployment rate reaches the vicinity of 7%, the Fed should stay on hold for around 6 more years.

I realize this is just a brief post and Krugman is surely more informed than I am, but it seems like 6 years might be optimistic. An awful lot of jobs need to be created and filled to get down to 7%.

aden_nak: So, never then?

this

Larofeticus: /Palin is Peggy Hill

Peggy Hill : Spanish :: Palin : Governing.

Notabunny: I realize this is just a brief post and Krugman is surely more informed than I am, but it seems like 6 years might be optimistic. An awful lot of jobs need to be created and filled to get down to 7%.

In layman's terms: "Lost decade."

So basically we'll get back to where we were with fake economics when we should have actually gotten there with semi-legit economics.

I hate the stock market

Krugman always seems skittish in interviews - he never makes eye contact and he stammers. It makes me wonder what he's up to.

Six years is uncharacteristically optimistic of him. The numbers I've seen indicate much worse.

Link (new window)

Real unemployment-measured the honest way it used to be 30 years ago, to include those who have given up looking for work or who are working part time involuntarily-is hitting 20% (for those who are bad at math, that's one out of five working-age Americans). Foreclosures are hitting a record. Half of laid-off workers are cashing out their 401(k)s in order to buy food. State and local governments, both major employers, are hitting a wall as tax collections plummet and federal stimulus funds run out.  This is not the foundation for a renewal of economic growth; it is the precondition for a renewed or prolonged recession.

My suggestion to Americans: Learn to speak on of two languages ASAP

Either Mandarin or Cantonese. Your choice.

Sarah Palin's second term?

Given that she a half-way quitter, recovery would come sooner than expected.

And that's assuming the planet would survive one term with her at the top.

BigJake: Krugman is much like Chomsky - very interesting academic work but usually not too bright on politics

This. If he weren't a shill for his own political ideology, I might trust some of what he says. I know he's smart, but he's written a book promoting the beliefs of liberalism. If he were a staunch conservative in the same way, everything he said would be discredited.

Yomoxu: Six years is uncharacteristically optimistic of him. The numbers I've seen indicate much worse.

It depends on what you're talking about. If you mean unemployment to drop down to low levels, maybe only two years. Real GDP to reach its peak, maybe 4-6 years. Same with the stock markets. Housing prices? Yeah, maybe by the time I die they're have neared their peak values in those bubbly areas.

Best case scenario we have right now is a "jobless" recovery and a decade of "90's Japan style" economics. The catch though is the debt. Look at Japan (new window).

Our debt problem (public and private) has been growing for decades. There are only two ways to get rid of debt, pay it off or bankruptcy. We are doing neither but instead are adding to it. If we go through a decade of stimulus packages, bailouts, and zombie banks being propped up by the government, we will be up there with Zimbabwe.

FarkIlk01: Our debt problem (public and private) has been growing for decades. There are only two ways to get rid of debt, pay it off or bankruptcy.

3. Inflate your way out of it

jjorsett: FarkIlk01: Our debt problem (public and private) has been growing for decades. There are only two ways to get rid of debt, pay it off or bankruptcy.

3. Inflate your way out of it

Point nuclear weapons at our creditors and say "How much do we owe you again?" Problem solved.

jjorsett: 3. Inflate your way out of it

The Fed can print money, but they can't print debtors. Outside of some quantitative easing they can't create money out of thin air as our dollars are are Federal Reserve Notes, ie. debt. Money is created in our economy by debt.

Hyperinflation can't happen unless: the Federal Reserve Act is altered or done away with, Federal Reserve Notes circulating currently cannot be repudiated (our current money still has to be money), and people have to be convinced by government we aren't in a "Weimar" scenario (which we would be).

sckonkh: Point nuclear weapons at our creditors and say "How much do we owe you again?" Problem solved.

It would actually be better to point nukes at them and force them to buy more debt, then not pay it back. We could also blow up major manufacturing around the world like in Europe and be the factory for the world once again like after WWII. It would give us 10-20 years of prosperity.

BigJake: Krugman is much like Chomsky - very interesting academic work but usually not too bright on politics

You sound dumb.

FarkIlk01: jjorsett: 3. Inflate your way out of it

The Fed can print money, but they can't print debtors. Outside of some quantitative easing they can't create money out of thin air as our dollars are are Federal Reserve Notes, ie. debt. Money is created in our economy by debt.

Hyperinflation can't happen unless: the Federal Reserve Act is altered or done away with, Federal Reserve Notes circulating currently cannot be repudiated (our current money still has to be money), and people have to be convinced by government we aren't in a "Weimar" scenario (which we would be).

sckonkh: Point nuclear weapons at our creditors and say "How much do we owe you again?" Problem solved.

It would actually be better to point nukes at them and force them to buy more debt, then not pay it back. We could also blow up major manufacturing around the world like in Europe and be the factory for the world once again like after WWII. It would give us 10-20 years of prosperity.

John Hodgman agrees:

so we need more growth like a dot com bubble or another Enron? Is that what he means by most people don't realize how good the growth was?

If Obama does not get elected for a second term and a Republican gets elected, I would not be surprised to see Krugman on the economic team for the new administration. Obama has virtually ignored the guy and it will him bite back.

I don't want Palin be the Republican nominee, her retard baby can run a government more effectively and put Krugman on the economic team.

CarnySaur: Krugman always seems skittish in interviews - he never makes eye contact and he stammers. It makes me wonder what he's up to.

He assumes people will detect he's a fraud.

second term of the Sarah Palin administration

Is that the same as "the 12th of never"?