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Source:
Does The UK’s Lousy Economy Prove It? Were Paul Krugman And Keynes Right?
Henry Blodget
Yahoo Tech Ticker, March 23, 2011
http://finance.yahoo.com/tech-ticker/does-the-uk%27s-lousy-economy-prove-it-were-paul-krugman-and-keynes-right-536065.html
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Dollar depreciation leads to higher inflation and ultimately forces foreign creditors to question their rationale and indeed their sanity for continuing purchases of U.S. Treasuries." -Bill Gross
Initial Jobless Claims for the week ended Feb 18th totaled 351k, 4k less than expected but the prior week was revised up by 3k to 351k. The 4 week average did fall to 359k from 366k, the lowest since Mar '08. Continuing Claims fell by 52k to the lowest since Aug '08. Also, Extended Benefits fell a net 69k. Bottom line, the data still points to a labor market that continues to improve however lumpy the process feels for many. ...
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March 24th, 2011 at 9:13 am
“maybe they’re just ahead of us..” – you think.
Everyone is squeezing on a balloon, they may be squeezing it from different ends but the likelihood is their particular balloon will pop eventually.
Is Krugman right? In my view rarely.
March 24th, 2011 at 9:19 am
Let’s discuss this in a couple of years when the US’s fiscal position has attracted a well-deserved banana republic status (with sincere apologies to Cullen Roche & Warren Mosler).
Extend and pretend only works for so long – the ‘growth’ nirvana is becomming meaningless.
And then it doesn’t work.
Cameron should be applauded for grasping the nettle – shame the US’s leaders are so frightened of reality.
March 24th, 2011 at 9:23 am
What it proves is there’s no free lunch. Cut government jobs and spending that supports private jobs and economy slows. Duh. Deficit now pumps the economy but has to be paid for eventually.
March 24th, 2011 at 9:49 am
This will take a few years to show who is right. Initial reactions may be that we are right, but all we are doing is kicking the can down the road. Japan is living proof that leveraging up the public sector doesn’t get the public sector moving. Now Japan still has a total Debt to GDP level equivalent to the start of their demise with no end in sight.
Cutting government jobs will hurt at first, but it will benefit over the longer term as private sector employees are more productive. What both governments fail to grasp is the vast majority of jobs and business spending comes from start ups. Encourage start ups and watch the economy grow. Mauldin does a great job of profiling this in his new book, Endgame.
March 24th, 2011 at 7:14 pm
pls bring back “reply” per commenter