Nyheter<\/strong><\/p>\n 01.06.2013<\/strong><\/p>\n Les Mike “Mish” Shedlocks kritikk av Paul Krugmans\u00a0feilsl\u00e5tte (keynianske) \u00f8konomiske teorier:\u00a0<\/b><\/p>\n Intellectual Dishonesy and Insanity on Steroids<\/strong><\/p>\n (This article has been written in its entirety by Mike \u201cMish\u201d Shedlock)<\/p>\n I just finished reading The Smith\/Klein\/Kalecki Theory of Austerity\u00a0by Paul Krugman and I believe it is the most disingenuous piece he has ever written.<\/p>\n Krugman comes out blazing with the statement “Noah Smith recently offered an interesting take on the real reasons austerity garners so much support from elites, no matter how badly it fails in practice.<\/i>” He then cites various sources who suggest “business interests hate Keynesian economics because they fear that it might work<\/i>“.<\/p>\n While halfheartedly dissing a similar thesis in Naomi Klein\u2019s Shock Doctrine, Krugman goes on to say the “thesis really helps explain a lot about what\u2019s going on in Europe in particular.<\/i>”<\/p>\n Paul, Please Be Serious<\/b><\/p>\n The first problem I have with the article is Krugman knows damn well that no Austrian-minded economist on the planet supports what is commonly and mistakenly (on purpose) referred to as “austerity”.<\/p>\n Please take a look at what Austrian economists want vs. what the nannycrats in Brussels delivered.<\/p>\n What Austrians Want<\/b><\/p>\n What Brussels Delivered<\/b><\/p>\n Insanity on Steroids<\/b><\/p>\n Krugman and others parade that mess as “austerity”. It’s not austerity. Rather, it’s insanity on steroids, and every Austrian economist on the planet knew it would not work.Yet, month in and month out we have to listen to the likes of Krugman saying or implying “I Told You So”.<\/p>\n Well, la de frickin’ da. I told you so too. And so did thousands of others, Keynesians and Austrians alike. Krugman would have you believe it’s austerity as implemented vs. Keynesianism. Well, it’s not, and he knows it, because any thinking mind knows tax hikes in the middle of a recession is insanity.<\/p>\n Idiots Do Idiotic Things <\/b><\/p>\n I do not know for sure why the idiots in Brussels forced those measures on Greece, Cyprus, Spain, Portugal, or Ireland, but the most likely explanation is simply “idiots do idiotic things”. About Those Keynesian Solutions<\/b><\/p>\n No, Paul, we do not fear Keynesianism or Monetarism will work, because theory and practice alike say neither will work. If they did work, Japan would not be a basket case after 20 years of trying.<\/p>\n I have asked this simple question of Krugman for what seems like a decade “When does it stop Paul? When?<\/i>” Krugman has never answered, but one can presume “never”. Japan is supposed to keep on spending money it does not have on wasteful projects “until it works”. The US supposedly needs to do the same.The average 7th grader knows that paying people to dig holes and then others to fill them back up again is economic idiocy, but the average Keynesian doesn’t.<\/p>\n With Japan leading the way, we are about to witness the results of such foolishness, but the comfort to the US is Japan will blow up first. Will that change Krugman’s mind? Hardly. And I have an ironic suggestion: Krugman does not want to try Austrian solutions out of fear they might work.<\/p>\n Given the world has tried his methods and they have failed, what else should one believe?<\/p>\n Mike “Mish” Shedlock<\/p>\n 31.05.2013<\/strong><\/p>\n I september 2012 etablerte European Central Bank (ECB) OMT (direkte kj\u00f8p av statsobligasjoner) p\u00e5 \u20ac 700 mrd for \u00e5 kunne holde sentralbanksjef Draghis \u201dwhatever it takes\u201d l\u00f8fte om \u00e5 st\u00f8tte \u20ac. Mange tyskere, med 1920 tallets hyperinflasjon friskt i minne, brakte saken inn for tysk h\u00f8yesterett i Karlsruhe, og hevdet at OMT var grunnlovsstridig. I f\u00f8rste omgang avviste h\u00f8yesterett innvendingene s\u00e5 lenge OMT var begrenset til \u20ac 700 mrd. Saken kommer opp p\u00e5 nytt 11 og 12 juni. Skulle domstolen endre sitt vedtak vil dette v\u00e6re et stort problem for ECB ettersom man da mister sin store \u201dbazooka\u201d som OMT er ment \u00e5 v\u00e6re<\/p>\n Dette viser at mange tyskerne kjemper hardt imot ECB\u2019s politikk fordi de mener den er uansvarlig. Det hevdes at Jens Weidmann (Bundesbank) og Mario Draghi ikke lengre er p\u00e5 talefot etter at Weidmann gjentatte ganger har g\u00e5tt til knallharde angrep p\u00e5 Draghi. R\u00e5det i ECB best\u00e5r av en representant fra hvert av de 17 medlemslandene pluss 5 representanter fra ECB administrasjonen. Tyskerne har imidlertid bare 2 av 23 stemmer, men er ansvarlig for 28% av ECBs balanse, snarere nesten 50% p\u00e5 grunn av alle medlemslandene som ikke lenger kan gj\u00f8re opp for seg.<\/p>\n Samtidig kom ECB nylig med en rapport p\u00e5 bankene i Eurosonen. ECB advarer mot risikoen for bank konkurser. ECB innr\u00f8mmer at ingen har god oversikt over bankenes reelle mengde av d\u00e5rlige l\u00e5n. Svakere \u00f8konomi, h\u00f8yere ledighet og d\u00e5rlige \u00f8konomiske utsikter gj\u00f8r at l\u00e5nekundene f\u00e5r stadig st\u00f8rre problem med \u00e5 betjene eksisterende l\u00e5n. Planen er at ECB skal bli den sentrale overv\u00e5ker for banker i \u20ac sonen. Sentralmakten mener at en slik enkel \u00f8velse skal l\u00f8se mye av problemene. Det er selvf\u00f8lgelig t\u00f8v. Problemene forsvinner ikke ved at man flytter p\u00e5 noen brikker.<\/p>\n De virkelig store problemene vil komme til overflaten den dagen sentralbankene, ECB inkludert, blir tvunget til \u00e5 avslutte sin elleville stimuli politikk. Da vil rentene stige og ringvirkningene blir som f\u00f8lger;<\/p>\n Sannheten er at sentralbankene har malt seg inn i et hj\u00f8rne og det er umulig \u00e5 exit uten store skader.<\/p>\n 29.05.2013<\/strong><\/p>\n Inflasjon eller deflasjon?<\/strong><\/p>\n Chart 1; USA\u2019s handelsbalanse som viser store underskudd. Mao trenger USA ekstern finansiering (f\u00f8r FED evt overtar all finansiering av den f\u00f8derale regjering).<\/p>\n Chart 2; Viser pengenes oml\u00f8pshastighet. I dagens situasjon fungerer FRL systemet d\u00e5rlig for viljen til \u00e5 l\u00e5ne\/konsumere har falt pga d\u00e5rlige tider.<\/p>\n Chart 3; L\u00f8nn som andel av GDP. Mao fallende reall\u00f8nn.<\/p>\n Konklusjon; skulle FED gj\u00f8re en exit s\u00e5 er faren stor for at vi f\u00e5r deflasjon basert p\u00e5 den real\u00f8konomien vi ser. Faren er da at FED, etter en periode med deflasjon, starter en ny aggressiv QE (overdose a la Japan) og at det hele ender med hyperinflasjon (>50% inflasjon i m\u00e5neden) som i Tyskland i 1922.<\/p>\n\n
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\nTo jack this into a belief that politicians did these things out of fear Keynesian policies might work is more than a stretch of the imagination, it’s preposterous.<\/p>\n\n
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