Paul Krugman Finally Admits The Obvious, "We are now, I fear, in the early stages of a third depres

Originally posted by murfdog

Originally posted by unityemissions
reply to post by theWCH

 

To my very limited understanding on the issue, war merely keeps the machine moving as a last resort. When the war ends, so do all the benefits that came from it as far as a growing economy is concerned. So, it may buy you some time until you can figure out how to create more industry. If that fails, and you lose the war. . that's it. Collapse.

Actually a world war is best for the economy after it is over. That is for the winners. One of The reasons for the USA’s great economic growth over the past fifty years is the fact that after the war the US was one of the only country’s left with its industry still intact.

I don't disagree, but I strongly believe that Bell Labs was a bigger reason for the economic growth. In a 25 year span, they gave us the transistor, the Unix OS, and the C programming language. Bell Labs basically created the information age, and it happened right here in the USA, while Europe was rebuilding. The important point, I think, is that the USA wasn't busy rebuilding after WWII. There were other "winners" in WWII, but none of them have come close to reaching legitimate "super-power" status, with the exception of what used to be the Soviet Union.

reply to post by jdub297

a decade of zero growth

That's what you appear to not grasp .. because of the differences between the way we calculate things like "gdp" Japan appears to have had no growth, while it really has grown. Just like the US's GDP often shows growth when there is actually severe contraction...

Playing with numbers.

By keeping such numbers down while their exports rose Japan was able to manipulate it's currency to be much lower than it really should have been, evidence of such as shown by the severe decline by the West in comparison to Japan, forcing Japans currency out of whack, severely deteriorating profit from exports.

I don't think you understand, so I'm not going to continue repeating myself.

Krugman is correct -- Austerity will destroy the economies, because the Governments and central banks were the only thing keeping the economies afloat. I don't agree with flooding the economies with printed money and capital .. but to deny that it saved us from economic Apocalypse is ignorant.

And if you want to see a "Lost Decade" ... Just look at the US Economy 1999-2010.

reply to post by Rockpuck


Rockpuck

I failed to quote you properly hence this followup from page 2.
If you have the time would you mind some clarification on your prior post ?


"The Federal Reserve has said they will not monetize another Stimulus Package.. so if they try to promote one, it would have to sell off foreign interest.. the past stimulus were floated by the fed, buying the Tbills and recycling through the Treasury."


Would you mind rephrasing the above statement for the folks who are unfamiliar with the language of economics ? " will not MONETIZE ' 'sell off FOREIGN INTEREST ' stimulus were FLOATED by the fed ' Tbills RECYCLED through the Treasury " ?
I have an average ( depending upon who asks ) working knowledge of the FRB. I would appreciate your understanding of the terminology. Thanks