Taking a Baseball Bat to Paul Krugman

Saturday, March 20, 2010 , , , , 3 Comments

Sure, I'm cool with that. Hot economist-on-economist action? Not so sure about that. I'm still waiting to see Lacker v Bernanke in Spandex and luchador masks.


In an interview with Bloomberg Television, Stephen Roach, Morgan Stanley's Asia chairman blasted Nobel Prize-winning economist Paul Krugman over the latter's stance on China's economic policy.

Roach elaborates:

I think we should take out the baseball bat on Paul Krugman. I think the advice is completely wrong. The US has had a conscious policy here of maintaining, quote, a strong and stable dollar. China is saying basically the same thing in terms of its stable currency. Isn't it the height of hypocrisy for America to articulate to articulate [sic] a particular position in its currency but the Chinese are not allowed to do that, especially since they as a developing economy - with an embryonic financial system - need a currency anchor probably a lot more than a sophisticated, quote unquote, economies like the United States."

Leave the fucking Chinese alone!

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.


W.C. Varones said...

"The US has had a conscious policy here of maintaining, quote, a strong and stable dollar."

Key words being past tense "HAS HAD!"

The more apt criticism of Krugman is that we are destroying our dollar with structural deficits of 10% of GDP which will require monetization of the debt. How can we bitch about China keeping its currency weak when we are deliberately destroying ours?

Anonymous said...

Americans are hooked on obtaining material objects made by inexpensive labor in foreign lands and our trade policies do not guard against the dumping of goods on our markets. Just the same, our capital markets are not guarded against the dumping of foreign reserves loaned to us by foreign central banks and governments at yields that will not incent domestic savings. Our own government is hooked on this cheap foreign capital just as the American consumer is hooked (but on a different sort of drug). No difference as far as I can see. Junkies of all stripes quit their habits one way or the other – they recognize the problem and sober up or they shoot up one last time all the while becoming the bitch of their pusher.

Anonymous said...

This past week, I talked with a former plant manager from Chicken of the Sea tuna. They recently closed down their American Samoa operations. The company catches tuna in the Pacific. A company from the Pacific Rim now calls the shots. They now ship the tuna to Thailand for cleaning, then ship it to a plant in rural Georgia for mechanized meat stripping and canning. From there it is then shipped. The former plant manager explained to me that this method was adopted because the most labor intensive portion of the operation (the jobs in American Samoa where workers were paid the princely sum of around $5 - $6 per hour) could be sent to Thailand. There the teeming, unwashed masses would agree to do the same job for around $2 PER DAY. Think about that – stand on your feet all day, using a knife and working in an environment where there is probably not the most stringent of safety standards comparatively for $2. The Far East can field individuals willing to do this type of work in numbers that we in the west cannot fathom.

Oh, but we get tuna in cans for 59 cents (local St. Louis price at discount grocers) instead of 89 cents – 30 cents of savings – fantastic (yes, that is sarcasm you hear in the text). We as a country will pay for that savings several times over when we are footing tax bills that cover new unemployment benefits for the large number of individuals recently unemployed for extended periods of time. Our social costs will rise exponentially. We will sit and wonder what we should do with the large numbers of unwashed masses in our midst who are turning to crime as a way of making a living (or supplementing a living). China is a society that is 4,000 years old. We may outshine them in many areas but, they have a bit of a jump on us in the population and procreation department, don’t you think? We have started a pissing match in the realm of cheap labor with the wrong opponent. As a nation, we are Cheetah (from the old Tarzan flicks) going up against King Kong where the labor market is concerned. We are always going to have individuals who are not inclined to go to college, or become yuppies or who are independently wealthy or who simply are not intelligent to do anything but manual labor. They are still human beings that exist in THIS economy (not China’s). They will need a job or they will get into mischief. It is inhumane to “throw them to the wolves” so that 30 cents of savings can be obtained on a metaphorical can of fucking tuna.

For anyone who sits back and just smugly says, “well serves the dumb asses right – should have gone off to school to get their MBA in Global Strategies of the World Wide Basket Weaving Economy” I ask exactly how many of these aforementioned MBA types do we need? Is everyone supposed to make a living “strategizing” and “thinking outside the box” and “creating paradigm shifts in the world wide global economy”? Personally, I hate being in the same room breathing the same fucking air with those types.