Paul Krugman Whores for the Fed

“The conscience of a liberal” Paul Krugman once again demonstrates his role as Fed bitch.  Like a third-world young lady receiving an all-expenses-paid trip to a developed nation in return for a chance to ‘make a living’, Krugman must ‘put-out’ once in a while for the Fed syndicate who launched his stardom with the Norwegian Nobel Prize Committee.

New York Time’s latest talent hit the street with his latest summation of the outlook for the euro in an Op-Ed piece, dated May 17, titled, Apocalypse Fairly Soon.  There, he states with crocodile tears that he’s not “optimistic” about the euro’s immediate future.  It’s such a pretty currency; too bad it has AIDS.

“Suddenly, it has become easy to see how the euro — that grand, flawed experiment in monetary union without political union — could come apart at the seams. We’re not talking about a distant prospect, either,” Krugman writes. “Things could fall apart with stunning speed, in a matter of months, not years.”

Krugman knows quite well that a failed euro spells a hastened demise of an equally failed U.S. dollar, as every John who attempts a trysts with the American competition soon finds out he’s been ‘had’ by a ladyboy, posing as the real thing.

“Realistically, the only way to provide such an environment [of hope for Spain and Italy] would be for the central bank to drop its obsession with price stability, to accept and indeed encourage several years of 3 percent or 4 percent inflation in Europe (and more than that in Germany),” Krugman offers as a solution to the euro crisis—a solution of bondage to 300 million Europeans who seek to make an honest living without selling their bodies on the streets to pay a bunch of banker pimps.

But Krugman’s pitch is a devious one, in that, he seeks, not only a solution of collectivized inflation, but a solution that gives the Fed room to inflict the same monetary policies across the Atlantic in the U.S.  If Europe will debase the euro, the U.S. will, too, in a see-saw trading range between the world’s two most important reserve currencies.

In essence, the coke-head economist prescribes a theft of capital, savings and income from the virtuous so that the racketeering can survive another day—maybe decades—on both continents, representing nearly half of the world’s GDP.

But Krugman claims he has a “conscience,” that lovely tart who promises to “love you long time” kind of conscience.

From dictionary.com:

conscience: the inner sense of what is right or wrong in one’s conduct or motives, impelling one toward right action.

“Think of it this way:” Krugman continues.  “Failure of the euro would amount to a huge defeat for the broader European project, the attempt to bring peace, prosperity and democracy to a continent with a terrible history.”

Democracy?  Tell that to Greece’s and Italy’s technocratic-led governments.

Prosperity?  Krugman’s neo-Ricardian model, infected with a common currency is, not only complicating a half-baked theoretical frame work for trade, it’s un-Democratic to say the very least—which brings us to his envisioned “peace” for the eurozone.

Maybe, if the Nurse Ratched approach of forcing an economic version of ‘busing’ in the eurozone could be rethought and untangled from the project’s real flaw (a common currency crossing sovereign borders), a more natural solution may emerge—like a Bretton Woods II.

A discussion along those lines, between Paul Krugman and former Bundesbank chairman Axel Weber, would provide some hands-on research work to fully-bake a sequel to Krugman’s book, Geography and Trade.  Maybe then Krugman might discover that people cannot be cookie-cut into formation to suit a global agenda, which is doomed to fail miserably for the same reasons a mutual understanding between Weber and a Woodrow Wilson School radical cannot be forged.

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