Notes From Underground: HELL hath frozen over

Paul Krugman’s piece in Friday’s New York Times gives more support to our “Ball OF Confusion” piece.While we respect Krugman’s work from the 1990s, on Japan and deflation we find his political views too venomous for our taste. But again, when he sticks to his economics he deserves a read.

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9 Responses to “Notes From Underground: HELL hath frozen over”

  1. Arthur Global Practice Says:

    Japanese Monetary Policy: A Case of Self-Induced Paralysis?
    Ben S. Bernanke
    Princeton University
    December 1999

  2. Arthur Global Practice Says:

    Alan Beattie (FT) compares the current situation with 2003:

    I´d like to point out again that US is not Japan, is it?

  3. Mr.Kowalski Says:

    Mssr Krugman has outdone himself in this one.
    He forgets one thing: Someday his children will have to pay.
    Bar none the worst crime a nation can commit is to indebt it’s children to pay for a debt crisis brought on by overconsumption. It’s the height of selfishness, and as a nation we will soon suffer a deserved fate.

  4. Arthur Global Practice Says:

    Investors divided. John Paulson bullish on the US economy and inflation hedge (gold fund)… However, Peter Thiel or Ray Dallio taking a different view: deflation.

    It seems to me that “inflation proponents” are capitulating (at the moment).

  5. yra Says:

    Paulson Gold position is the ultimate hedge for he sees it as both a deflation and inflation hedge.Paulson knows that the U.S. cannot and will not tolerate a deflation spiral.That has been my view for 3 years and i hold to it–the politics of deflation in a debt diseased democracy cannot be allowed to rise to the top and the political and economic elite in the U.S. know it—-the more the DSGE model that the FED policy is based on proves flawed the greater the panic—Paulson is the rare bird who understands the politics as well as the economics—as doe Peter Thiel whom I hold in very high esteem—see his interview in Inside the House of Money by Steve Drobny

  6. Arthur Global Practice Says:

    I see. It´s very clear. Thanks a lot. (Re-reading Peter Thiel).

    By the way, we must not forget how bad things still are for the eurozone (southern countries) and the geo or macro consequences. At the same time Germany: strongest quarterly growth since 1990.
    The German locomotive is puffing again?

    The future of the EU is… a BIG mystery?

  7. yra Says:

    yes but europe is not germany and the yen discussion needs to be about euro/yen rather then dollar/yen

  8. Arthur Global Practice Says:

    OK. Then, we´ll examine euro/yen… Best

  9. Arthur Global Practice Says:

    Economist Jeffrey Sachs, the director of Columbia University’s Earth Institute: “What I found surprising about the Obama approach was that it basically was trying to get people to start spending again where they were saying ‘we’re tired, we’re tired, we need to save a little bit,’” he said. “And once one realizes that consumption is going to be down, we’d need a different approach from simply ‘stimulus,’ from cutting taxes for households to spend more.”

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