Paul Krugman criticizes the Federal Reserve for not acting to get the U.S. out of the Great Recession. He doesn’t explain what he thinks the Fed should do in this column, but anyone who reads him regularly knows that what he is criticizing the Fed for not doing QE3, which is to say, for not running the printing presses. If only the Fed would create more money out of nothing at interest to the public, we could turn this economy around.
The editors of the New York Times share their Nobel Prize-winning columnists’ delusions, and similarly call for more monetary inflation and more government spending. The former prescription, of course, is premised on the assumption that wealth can come from a printing press, and the latter on the assumption that government bureaucrats know better than the market how best to allocate scarce resources to their most productive ends.
And if you buy either of those assumptions, I’ve got some mortgage-backed securities to sell ya. Triple-A rated.
Krugman, of course, as I document in my book Ron Paul vs. Paul Krugman, ALWAYS advocates for more inflation, just as he advocated that the Fed lower interest rates following the collapse of the dot-com bubble in order to create a housing bubble to replace it. Back when the Fed was inflating the housing bubble, Krugman was criticizing the Fed for not lowering interest rates enough to inflate it even more.
And Krugman is the guy we are supposed to listen to for advice on how to get out of the mess the policies he advocated created in the first place?