Paul Krugman: The Only Thing We Have to Fear is Inflation Fear Itself? No, Krugman, We Need to Fear Your Friends

Paul Krugman. We all know who he is. Many hold Krugman in high enough regard to refer to him as one of the top economists of our day. That's fine, as everyone is entitled to their opinion, however I question Krugman's motivation. This certainly does not invalidate his opinion nor expertise, it simply makes him a diabolical douchebag like the rest of the crew.

I can see the look on your face, dear reader. "Jr, whatthefuck are you talking about? Krugman is a genius! He's a Nobel Prize winner! WTF!" WTF indeed. May I remind you here that our buddy George W. Bush was also up for a Nobel? Oh yes.

They say you are known by the company you keep which leads me to wonder if Paul Krugman should be given as much credit as he gets. What?! Yes! Pay attention, I'm trying to school you here. Perhaps you have heard of the Group of 30, the "experts" who essentially drafted Obama's plan for economic recovery - yes, that same plan which is bombing and plunging us further into the depths of economic abyss.

We have been over this before, kids. (See my March 28th Goldman Sachs: Funding Economic Terrorism. Or at Least Financial Shenanigans) Krugman, through the Group of 30, rolls with the likes of Tim Geithner, Paul Volcker, Larry Summers, and Goldman Sachs' E Gerald Corrigan. A winning bunch if there ever was one, eh?

These are your experts. Yes, even Tim Geithner. Again, I am not trying to discredit Krugman (how dare I, as an art school drop-out, call into question the expertise of a fucking Princeton economist, right? I remind you, dear reader, that Zimbabwe Ben Bernanke hails from the same school and obviously has his head inserted directly up his ass these days FWIW), I am merely pointing out for your good that nothing, nothing in this economic Bizarro World we call home should be taken at face value. Especially not "the experts" as we have seen what good their "expertise" has done of late. Oh, you didn't see? Karl Denninger was kind enough to explain where expertise and Fed shenanigans have gotten us, skeeze on over and take a look for yourself.

As we discussed before, the Group of 30 (a non-profit org masquerading as an economic advisory panel, or perhaps it is the other way around) is funded by some familiar names including:

* American International Group
* Goldman Sachs
* Standard & Poor's
* Board of Governors of the Federal Reserve System
* Federal Reserve Bank of New York (hahahahahahahahaha! wellllllll fuck me! look who it is!)
* JPMorgan Chase
* Citi
* Soros Fund Management
* Morgan Stanley & Co.
* People’s Bank of China (among many other international central banking organizations)

How fucking cute! Soros as in George Soros the eugenicist trying to destroy billions of human lives around the world in the name of population control? Aww!

Now that we got that out of the way (dear reader is, as always, encouraged to do their own research and come to their own conclusions), let's discuss inflation with our buddy Paul Krugman, shall we?

Via NYT op-ed

Suddenly it seems as if everyone is talking about inflation. Stern opinion pieces warn that hyperinflation is just around the corner. And markets may be heeding these warnings: Interest rates on long-term government bonds are up, with fear of future inflation one possible reason for the interest-rate spike.

But does the big inflation scare make any sense? Basically, no.

So if prices aren’t rising, why the inflation worries? Some claim that the Federal Reserve is printing lots of money, which must be inflationary, while others claim that budget deficits will eventually force the U.S. government to inflate away its debt.

The first story is just wrong. The second could be right, but isn’t.

Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.

Really, Krugman? You can actually write that with a straight face? Bernanke himself went on National fucking teevee and said as much, you asshat! We aren't talking about the banks, we know the Fed is sitting on the same money they conjured up to bail them out, that much has been proven (unless, of course, they're the ones moving tens of billions of dollars in the market like PPT on methamphetamines). What about the Fed's $300 billion Treasury scheme? Where is that money coming from?

Of course the Fed isn't printing money, dickhead. In case you weren't aware, Mr Krugman, thanks to the magic of modern technology, the Fed doesn't really have to. "Money" is but a blip on a chip - shift around a few blips, plug in some numbers and viola! In-fucking-flation!

Krugman goes on to point to historical examples which debunk the inflation fears. But wait, didn't he just say these aren't ordinary times? So how in the hell could past examples be appropriate proof that we have nothing to fear huh?

Bah. Krugman can shove it as far as I am concerned. Blah, blah, blah, deny, deny, deny...

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.