Time To Borrow

[horses4courses]

Krugman.
Of course it makes sense, cons..........enjoy :lol:

http://www.nytimes.com/2016/08/08/opinion/time-to-borrow.html?smid=tw-nytimes&smtyp=cur&_r=0

There are, of course, many ways our economic policy could be improved. But the most important thing we need is sharply increased public investment in everything from energy to transportation to wastewater treatment. How should we pay for this investment? We shouldn’t — not now, or any time soon. Right now there is an overwhelming case for more government borrowing.

So why aren’t we borrowing and investing? Here are some of the usual objections, and why they’re wrong. We can’t borrow because we already have too much debt. People who say this usually like to cite big numbers — “Our debt is 19 trillion dollars,” they intone in their best Dr. Evil voice. But everything about the U.S. economy is huge, and what matters is the comparison between the cost of servicing our debt and our ability to pay. And federal interest payments are only 1.3 percent of G.D.P., low by historical standards. Borrowing costs may be low now, but they might rise. Yes, maybe. But we’re talking about long-term borrowing that locks in today’s low rates. If 10 years isn’t long enough for you, how about 30-year, inflation-protected bonds? They’re only yielding 0.64 percent.

The good news is that elite discourse seems, finally, to be moving in the right direction. Five years ago the Beltway crowd was fixated on debt and deficits as the great evils. Today, not so much. The bad news is that even if Hillary Clinton wins, she may well face the same kind of scorched-earth Republican opposition President Obama faced from day one. So it matters not just who wins in November, but by how much. Will there be a strong enough Democratic wave to give Mrs. Clinton the ability to act? But while the politics remain uncertain, it’s clear what we should be doing. It’s time for the federal government to borrow and invest.

[ReplayRandall]

Krugman.
Of course it makes sense, cons..........enjoy :lol:

http://www.nytimes.com/2016/08/08/opinion/time-to-borrow.html?smid=tw-nytimes&smtyp=cur&_r=0

How's the "marker" policy at the Tahoe casino you work at, H4C? If it's as liberal as this Krugman piece, I'll be coming to see you real soon for my "free-roll" shot at taking down all that I can.....

[horses4courses]

How's the "marker" policy at the Tahoe casino you work at, H4C? If it's as liberal as this Krugman piece, I'll be coming to see you real soon for my "free-roll" shot at taking down all that I can.....

Your credit is good in every casino on this earth, Mr. Howard...... ;)

[thaskalos]

Your credit is good in every casino on this earth, Mr. Howard...... ;)

Careful...he might take you UP on that. :)

[Clocker]

Krugman, the guy who said that we could spend our way out of a recession by having the government build a defense system against a fake alien invasion from Mars. :D

[Jess Hawsen Arown]

Krugman is the liberal role model for the nightmare we are suffering through where

20% of American families have nobody working
Health insurance premiums have doubled for many working families
People using food stamps are at record highs
Income is stagnant while hundreds of thousands of jobs have changed to part time
The illegal alien influx has driven salaries to imperceivable lows.

Meanwhile, Hillary's biggest supporters are white billionaires while nobody suffers more under Barack Obama than the black population.

A wonderful role model.

[Inner Dirt]

Krugman is the liberal role model for the nightmare we are suffering through where

20% of American families have nobody working
Health insurance premiums have doubled for many working families
People using food stamps are at record highs
Income is stagnant while hundreds of thousands of jobs have changed to part time
The illegal alien influx has driven salaries to imperceivable lows.

Meanwhile, Hillary's biggest supporters are white billionaires while nobody suffers more under Barack Obama than the black population.

A wonderful role model.

You forgot to add that the national debt has doubled in the last 8 years, it
is funny how liberals always seem to forget that when talking about the economy.

[Clocker]

Krugman says we should borrow more now and use long term debt to lock in low interest rates.

We could be locking in low, long term interest rates now, but the Treasury isn't doing that. They are borrowing short term because those rates are even lower, which means they have to roll over that debt frequently. It's been said that the US debt is the biggest adjustable rate mortgage in history.

Why isn't Treasury locking in low long term rates? Because the Treasury is run by politicians, and the long term for politicians is the next election. They don't care what interest rates or interest on the debt are at any point in the future, they care about what it is now. And the shorter term debt they borrow, the better the debt payment looks today.

According to the CBO, we paid about $225 billion in interest on the debt in 2015. If interest rates start going up in the near future to anywhere near normal historic rates, the interest on the debt will be around $800 billion a year in about 10 years. And since we don't even have the $225 billion now, that means another $800 billion a year we have to borrow then.

But who cares? As Keynes said, in the long run we are all dead. And in the long run, it's future generations that will have to deal with it.

[Clocker]

You forgot to add that the national debt has doubled in the last 8 years, it
is funny how liberals always seem to forget that when talking about the economy.

Liberals also forget that the $20 trillion or so in national debt is a joke. Here's what one person who knows a little about it says:

The former U.S. comptroller general says the real U.S. debt is closer to about $65 trillion than the oft-cited figure of $18 trillion.

Dave Walker, who headed the Government Accountability Office (GAO) under Presidents Bill Clinton and George W. Bush, said when you add up all of the nation’s unfunded liabilities, the national debt is more than three times the number generally advertised.


Other estimates I have seen have been more than double that number.

http://thehill.com/blogs/blog-briefing-room/news/259476-ex-gao-head-us-debt-is-three-times-more-than-you-think

[chadk66]

Krugman:lol: What a crack head

[elysiantraveller]

Krugman says we should borrow more now and use long term debt to lock in low interest rates.

We could be locking in low, long term interest rates now, but the Treasury isn't doing that. They are borrowing short term because those rates are even lower, which means they have to roll over that debt frequently. It's been said that the US debt is the biggest adjustable rate mortgage in history.

Krugman becomes a hack in a lot of ways.

We should be borrowing at long term rates. We should be swapping short term for long term.

You're right... he's half right...

We aren't doing that.

[Saratoga_Mike]

Krugman becomes a hack in a lot of ways.

We should be borrowing at long term rates. We should be swapping short term for long term.

You're right... he's half right...

We aren't doing that.

EXACTLY right.

[Clocker]

Krugman becomes a hack in a lot of ways.

We should be borrowing at long term rates. We should be swapping short term for long term.

You're right... he's half right...

We aren't doing that.

A typical moonbat academic. Even when he stumbles on a good theory, he has no idea of how to apply it in the real world. :p

[classhandicapper]

Krugman.
Of course it makes sense, cons..........enjoy :lol:

http://www.nytimes.com/2016/08/08/opinion/time-to-borrow.html?smid=tw-nytimes&smtyp=cur&_r=0

He has no intention of borrowing money and paying interest on it. He will advocate printing more money and monetizing it, effectively confiscating even more wealth from savers and absolving himself and all the other lefties from responsibility because the public will not understand it is bent over.

One reason we aren't locking in even more debt at long term fixed rates is that our foreign private creditors would be dumber than a rock to lend money at these long term fixed rates to assholes like Krugman. They want short term money so they can roll it over "when" rates rise.

Anyone that gives money to this government at a long term fixed rate in an environment where the inflation rate is rigged and governments everywhere are monetizing trillions of dollars of debt annually is an asshole. Governments are all actively TRYING to create inflation. Sorry for using that term, but there is no nice way to express it.

Krugman should not be allowed anywhere near anyone with any power to do anything. He is single handedly destroying countries like Japan that have taken his advice to borrow even more and inflate. Their economy still sucks, except they have way more debt and will probably lose a couple of more decades of growth to these Keynesian nitwits.

[rastajenk]

James Taranto of Wall St Journal's Best of the Web always introduces a comment from this guy by identifying him as "former Enron adviser Paul Krugman."

:D

[chadk66]

James Taranto of Wall St Journal's Best of the Web always introduces a comment from this guy by identifying him as "former Enron adviser Paul Krugman."

:D:D and who else do we know that was involved with Enron?;)

[Clocker]

It looks like Trump must have read Krugman's article. He has flip-flopped on his position on the national debt and now says that we need to borrow billions more.

"This is the time to borrow," the Republican candidate said in an interview on CNBC Thursday morning.

"Normally, you would say you want to reduce your debt, and I would like to reduce debt too," Trump said, before explaining that "the problem is you have a military problem, you have an infrastructure problem — a tremendous infrastructure problem, and you have other problems. And also, the asset is your rates are so low."

Trump's campaign has previously stated implausibly ambitious goals for reducing or outright eliminating the federal debt. Trump has also, however, muddied the waters with ambiguous statements about refinancing or renegotiating the debt.



http://www.washingtonexaminer.com/trump-reverses-on-federal-debt-this-is-the-time-to-borrow/article/2599103

[classhandicapper]

It looks like Trump must have read Krugman's article. He has flip-flopped on his position on the national debt and now says that we need to borrow billions more.



http://www.washingtonexaminer.com/trump-reverses-on-federal-debt-this-is-the-time-to-borrow/article/2599103

I heard that interview when I was getting ready to go to work this morning. In theory, they are both right. The problem is that even if you were going to use the proceeds properly (like making necessary investments in infrastructure as opposed to using it for more consumption), you may have a tough time issuing large sums of 30 year debt. No one in their right mind would lend to this or any of the other major countries for 30 years at these rates. They would be depending on crazy people doing the buying. But crazy in selling in Europe now so who knows.

I have less of an opinion on what Trump would do if he raised more debt. But I know the Krugman's of the world fully intend to monetize as much of it as necessary to keep their debt pyramid scheme going. I'm tried of these scum buckets robbing savers to advance their political agendas when the system is supposed to reward saving and investment and punish irresponsible consumption.

Maybe the second amendment people can straighten this problem out. ;) :lol:

[Parkview_Pirate]

I don't have any faith that Krugman, Trump or Hillary understand how to transition the country (and world) smoothly from a growth-based economic model to one of contraction and sustainability.

All of them want to keep the pedal to the metal until we hit the wall.

It's going to be a helluva crash.

[chadk66]

I don't have any faith that Krugman, Trump or Hillary understand how to transition the country (and world) smoothly from a growth-based economic model to one of contraction and sustainability.

All of them want to keep the pedal to the metal until we hit the wall.

It's going to be a helluva crash.I think Trump is in for a rude awakening. He is used to just telling people to "go do it". Doesn't work that way in government. You have to persuade people to help you (congress). He is however, very good at that. One thing I do know with certainty, he couldn't do any worse if he spent three days a week golfing.:cool: