The Baystate Objectivist

The Baystate Objectivist

Friday, February 15, 2013


Cool couch on State Street.

Icey swans on Main Street.

Frosty poem in Amherst College.

Melting snow on the woodland way reveals the graffiti beneath.

Most people don't take very seriously the views of crackpot economist Paul Krugman, but now according to Joe Scarborough even his fellow lefties are abandoning him.

The Krugman solution? Simply ignore America’s long-term debt.

That reckless conclusion shocked even the hardiest of Keynesians on the “Morning Joe” set last week. President Barack Obama’s car czar, Steve Rattner, described Krugman’s views as dangerous. Columbia University economist Jeffrey Sachs concurred, saying Krugman’s views were reckless, Democratic leader Ed Rendell politely explained to our guest that investment and debt control were not mutually exclusive, and Council on Foreign Relations President Richard Haass dismissed this form of debt-denial as deeply irresponsible.

Read more here.

photo by D. Vazquez

Actually the Colonial Era was the period before 1776.

1 comment:

Peter said...

I am an extreme centrist, and I think that there are good reasons why the idea of simply ignoring the U.S. debt is good, and it may be best for everyone. Many countries have defaulted on sovereign dabt, and some countries have defaulted seveeral times, but that doesn't mean that they can't get loans. Russia is an excellent of a debtor country that has defaulted with severe negative consequences.

There are several ways that the U.S. could partially default and maybe even be rewarded for it, because of the strange way the the government handles its finances.