Smitty Smacks Down Krugman

One of the first things I read this morning was an article by Paul Krugman,  The Third Depression.  Admittedly, I only had a half of a cup of coffee under my belt, so my thinking may have been a bit fuzzy. It seemed to me Krugman said, "The only way out of fiscal problems caused by too much easy credit and overspending is more easy credit and overspending!"  Hmmm,  that can't be right.

Luckily, Smitty explained it for me, and I thank him.  He also garnered the coveted quote of the day award:

What is dawning upon citizens around the world, who are neither stupid nor instinctively political, is that the world is governed by thieves and morons that are stupid and all too political. No good can come of this open loop system of debt and more debt. Like an idiot savant dope fiend on a bender, the best result of Krugmanism might be a slightly lengthened euphoria before an even more devastating crash.

 Even though Smitty used highly technical language involving generators, rotors, and other mysterious elements of the mechanical world, I was able to finally understand exactly what Mr. Krugman said.  Of course, I'd had a second cup of coffee by that time, which helped.  

From Smitty by way of The Other McCain:

Krugman: If We Halt Policy That Causes Pain, The Situation Will Really Hurt