From: Andrew Johnson
Date: 2011-08-16 09:58:16
Yes, THIS REALLY WAS SAID!! The seems to be suggesting that a deception should be used to stimulate the economy… The thinking is endemic…. www.globalpost.com/d… e-us-economy www.youtube.com/watc… www.youtube.com/watc… www.youtube.com/watc… Paul Krugman: Think about World War 2. That was not – that was actually negative social product spending, and yet, it brought us out. I mean, probably because you want to put these things together, if we say, look, we could use some inflation. Ken and I are both saying that, which is, of course, anathema to a lot of people in Washington but is, in fact, what basic logic says. It’s very hard to get inflation in a depressed economy. But if you had a program of government spending plus an expansionary policy by the Fed, you could get that. So, if you think about using all of these things together, you could accomplish a great deal. If we discovered that space aliens were planning to attack and we needed a massive build-up to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months. And then if we discovered, oops, we made a mistake, there aren’t any aliens, we’d be a better – Ken Rogoff: And we need Orson Welles, is what you’re saying.
