US political figures attack European austerity measures (Paul Krugman)

Paul Krugman is one of the plethora of bureaucrats, politicians and pundits that hold that inflation cannot be and is not limited mathematically. Not only that, but since Germany is the country in the best of fiscal and financial health, they should be obliged to fuck themselves up deliberately so we can all be up to our chins in the same septic hole begging each other not to make waves.

http://www.guardian.co.uk/business/2010/jun/11/european-debt-crisis-us-economy

Krugman said China and Germany, or “Chermany”, were a problem and agreed what he termed “massive currency manipulation” should be punished with extra taxes on imports. “Yes, threatening an anti-dumping duty would be a big step, and might pose some risks. But doing nothing is not an acceptable option.

It seems to me that Mr. Krugman conveniently omits to point out that the USA as the de facto banker to the world has manipulated the currency since 1913. Just in the past thirty years, the USA have blatantly and overtly manipulated their currency by various means some more devious than others:

http://stockcharts.com/h-sc/ui?s=$TYX&p=M&b=2&g=0&id=p56310183106

This is a chart of long term interest rates. It clearly slopes from the top left to the bottom right: i.e. interest rates have been manipulated lower.

But more insidious strategies to manipulate the currency consist in foreign aid, exotic financial instruments (Credit Default Swaps), war and ostensible nation building…

Of two things one. Either Mr. Krugman is genuinely naive or he has an agenda.

And by the way. Unless I am missing something, Mr. Krugman is advocating protectionism.

What’s next. Invade Germany because they have successfully kept their house in order?

For more charts on gold follow the link “my charts” in the right hand side column.

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One Response to “US political figures attack European austerity measures (Paul Krugman)”

  1. Jus’ checkn’…. « Guido's temple of the absurd Says:

    […] Guido's temple of the absurd The monetary system is not ratified by society yet it shapes and dictates our entire existence… « US political figures attack European austerity measures (Paul Krugman) […]

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