Professor Krugman writes
... it’s quite clear that we’re in serious paradox of thrift territory here. Or perhaps more accurately, we’re in a paradox of debt. Consumers are pulling back because they’ve realized that they’re too far in debt. The economy is shrinking in large part because consumers are pulling back. And the result, almost surely, is to leave household balance sheets worse than ever. Without question the ratio of household debt to personal income has been rising, not falling, as consumers try to save more.INFLATION IS THE SOLUTION. Deflation, despite its wonderful lowering of prices, is bad since America is much indebted. It would be very good for the Chinese, whom the Americans have mortgaged their mothers. Therefore America must inflate the dollar, like it or not.
3 comments:
Greetings,
I'm a journalist based in the U.S. working on a book about climate change and hunting around for a water-related story in Israel. Would you be willing to exchange an email or two?
Please let me know. You can reach me at nomad5.0@juno.com
Greetings,
I do honest work for a living while based in the US and I am not working on a book about climate change. However, I am looking for water-related stories in Israel. Would you be willing to exchange a beer or two (or three or four)? Please let me know. You can reach me at doane.mark@hotmail.com
J, what about the beer?
Post a Comment