Paul Krugman thinks we just ‘need more stuff’…

And BTW, if you missed it, Paul thinks we are all racists too, though we may not know it…The deficit is exploding and we are hitting new records monthly but Paul wants to spend more.

I am guessing Paul is not a George Carlin fan, or he would know the LAST thing we need is more STUFF…

CNBC:

…More stimulus money is key for a sustainable recovery as fears of inflation are overdone, Krugman told CNBC.

“We really should have a second stimulus, we should have more stuff,” he said, dismissing fears of price rises as a result of too much cash in the system.

“I think that’s an old line from the great depression, that crying ‘fire, fire’ amid Noah’s flood. I mean, we have no signs of inflation on the horizon. There is nothing in there that would be inflationary.””You have to understand that putting money in the system, it mostly just sits there. It’s quite easy to pull it out again if inflation starts to loom,” he said….

The money in the system, ‘just sits there’ and it’s ‘quite easy to pull it out again’. Yuh-huh Paul m’kay. It will be EASY for the Fed to dump all the MBS it is holding and raise rates in the face of incipient inflation. Suuuuuure. The Fed that will be headed by Bernanke would do it I agree.

But we all know it will NOT be Ben, it will be Larry Summers, and he seems pretty wrapped around TOTUS finger…when he is awake that is….myself I am pretty sure the FED will be too loose for too long. We will have another bubble, it is the nature of the beast. We have stimulus spending not coming out of round one until 2010, methinks Paul wants to prevent the double dip that is coming to avoid losing WH and Congress between 2010-2012…

*Carlin courtesy of CappyNJ

August 10, 2009. Tags: , , , , , , . Comedy, Economy, Entertainment, Finance, Housing, Obama Administration, Politics, Popular Culture, Taxes.

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