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Old 09-06-2011, 04:46 PM
sugarkang sugarkang is offline
Join Date: Oct 2008
Location: Cali, Small-Govt Liberal
Posts: 2,186
Default Re: Booze and Money (Tim Fernholz & Megan McArdle)

Originally Posted by Parallax View Post
Speaking of gold if you adjust for inflation it is still below its peak in 1980. But what makes gold or platinum so special? Can't we use rice instead? Or how about canned soup? My favorite is the price of a McDonalds Hamburger, which has actually experienced a bit of deflation since 1950s. If you are arguing for the prices the citizenry has to pay these are more relevant than gold and platinum.
I agree. I don't know what caused you to think otherwise.

Let me see how this goes:

1. Krugman says X in 2002.
2. Krugman and I both say Y in 2011.
3. You don't like X.
4. Since I agree with Krugman on Y I am also responsible for X.

Ah, I see it now! Nicely deduced.
I don't know why you keep missing the other parts to my argument. We are agreed that we have a demand problem. I only purport to have some humility on the matter and to the proper fixes. You're advocating a Keynesian policy. This Recession was caused by that policy. It's possible that we may need a crap ton of inflation to get out of this mess and I've said so in another thread. That doesn't make it crystal clear that we should.

Humility is my argument.

I have provided evidence that Hayek would favor very strong easing by the Fed right now.
And I've said that the house bubble was the easing. Hayekians say that you can't have easing on top of easing. The idea is that QE1 worked, QE2 didn't, and QE3 will be more trouble than it's worth. Am I sure that this is right? No. But what makes you sure that it isn't?

Again, Hayek was not talking about bubbles and housing. He supported NGDP targeting. US has been well below target for nearly 4 years, so we need more easing.
I don't know what you mean by this.

So in your opinion even with easing unemployment would stay high. Ignoring the fact that QE 2.0 lowered unemployment from 9.8% to 8.8% for a moment. I don't see what the downside of easing is then. We have 9.1% unemployment already! And it would also help exports by weakening the dollar.
I've answered this.

Consistency. The figures for EU countries don't contain the debt you are adding to US public debt.
If you want consistency, then before comparing our debt to Europeans, shouldn't we consult Americans on whether or not intragovernmental debt is debt?

Here's what PBS says on the matter.

I get the feeling that you want certain facts to be true. I'm only interested in what actually is.
The mixing of populations lowers the cost of being unusual.
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