Ep. 43 Krugman Says Investors Have Given Up Hope…So, What Happened to that Obama Recovery, Paul?
16 July 2016 | Tom Woods
This week, Krugman considers several possible explanations for why long-term interest rates are so low around the world. The one he settles on: investors have concluded that the weak economy is the new normal, so to speak, so they’re willing to accept low yields. But this explanation contradicts Krugman’s repeated insistence that the Obama recovery is stronger than ignorant right-wingers give it credit for. Which is it?
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If “economics” is a natural science — which I believe it is, then how can it’s “laws” be ignored without consequences.
Imagine physics if the speed of light was not a constant?
Imagine chemistry if elements’ characteristics were ignored.
Imagine math if π was published as 3.14 exactly.
Chaos!
Economics’ supply and demand is an observed logically consistent “law” (i.e., lower your price and people can buy more; raise your price and the opposite happens).
Interest rates are a reflection of people’s time preference. Not what the Gooferment says it is.
Argh!
When the FED just “prints” money, people make terrible decisions!
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Reinke Faces Life 