16 May 2016

Murphy Twin Spin

Contra Krugman, Shameless Self-Promotion, Trump 7 Comments

==> Hey, every Contra Krugman episode is a thing of beauty, but I really liked this most recent one, where we take on Krugman talking about Trump talking about a Treasury default.

==> And here’s the accompanying blog post I did, to show why Krugman/Yglesias in 2012 were stressing salutary mechanisms over fears of a Treasury default that for some reason they don’t mention today in the context of Trump. (And vice versa, the stuff they’re saying today–to show what a nutjob Trump is–were never mentioned back in 2012 when some people were worried about a “bond vigilante” attack.)

==> And here’s a bonus link: Michael Malice does a good job on Tom’s show talking about Trump vs. Clinton.

7 Responses to “Murphy Twin Spin”

  1. guest says:

    “(And vice versa, the stuff they’re saying today–to show what a nutjob Trump is–were never mentioned back in 2012 when some people were worried about a “bond vigilante” attack.)”

    I have an idea about why that would be:

    Van Jones Cops a Plea

    “I guarantee you, if John McCain had been President, with that oil spill, or George Bush had been President with that oil spill, I’d have been out there with a sign protesting. I didn’t, because of who the President was.” – Van Jones

  2. Tel says:

    Good work on Contra-Krugman. You clearly caught him doing a back flip… you do know that what Krugman really did was a double back flip with a half pike twist.

    Krugman 2003 “A Fiscal Train Wreck”

    With war looming, it’s time to be prepared. So last week I switched to a fixed-rate mortgage. It means higher monthly payments, but I’m terrified about what will happen to interest rates once financial markets wake up to the implications of skyrocketing budget deficits.

    So debt under Bush = bad
    Debt under Obama = good
    Anything Trump says = bad

    There might be something partisan going on here.

    • Khodge says:

      “There might be something partisan going on here.”

      No, I don’t think that is a reasonable conclusion.

  3. Major.Freedom says:

    Even though I like to think I gave a small assist in this one, can I still say this was perhaps the “best” worst Kontradiction you wrote about yet?

    Tom: Good argument on the unexpected MICRO level phenomenon of undeserved winners and losers of inflation. So incredibly important and you are right, it is overlooked.

  4. Bryan says:

    I just really hope Malice is right and Trump brings up Webb Hubbell. Get the popcorn! http://www.wnd.com/2015/10/webb-hubbell-no-comment-on-fathering-chelsea-clinton/

  5. Khodge says:

    Tom was quite adament on contraKrugman that interest rates cannot stay low. Practically, given the politics involved (remember that the Democrat’s second option is a socialist who is actually very popular), that is true. Econmically and historically, though, it is not a given that interest rates must rise.

    • Tel says:

      Have you been listening to the latest Schiff? Inflation in the USA is picking up and also the USD is looking a little bit weak against the EUR (nothing serious, yet) and also weak against the JPY. PPI (all commodities) bottomed in Feb, then rose in Mar, rose in Apr and the May data isn’t available.

      Put all that together and I think the Fed will be under serious pressure to raise rates. They can let the USD slide a bit, probably good for exports if it doesn’t go to far… but they can’t allow positive feedback to set in. Problem is the election puts rate rises in Sep, Oct right off the table… so it will have to be July or August.

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