Krugman, China, and the Dollar

Today Americans have to wonder just how far off the deep end Paul Krugman plans to go with his calls for fiscal and monetary stimulus. This morning Krugman compared the GOP to China and Germany saying that all have “suspect” motives. Is Mr. Krugman really so naïve or is he purposefully wrong? Being a Nobel Prize winner, Mr. Krugman’s intelligence is hardly in doubt, therefore his motives must be questioned. Mr. Krugman surely recognizes the asset inflation that has driven the price of gold to more than $1,400 an ounce from near $300/ounce not so long ago. Surely it is asset inflation that has caused the volatility in the prices of corn, silver, copper, and most other natural resources. Krugman is surely aware of the spikes in stock and bond prices over the last year. So how can he show such ignorance as to what the strategy of the Federal Reserve has been accomplishing? Dollar debasement is the obvious goal of the Fed crew, and Krugman is wholeheartedly behind such a destructive move. He is turning a blind eye to America’s savers, letting them drift.

In his article Mr. Krugman writes “For the Chinese government, by the way, attacking the Fed has the additional benefit of shifting attention away from its own currency manipulation, which keeps China’s currency artificially weak — precisely the sin China falsely accuses America of committing.” Sure, the Chinese are holding their currency artificially low, just as Mr. Krugman criticizes them for. But how does committing the same mistake, as Mr. Krugman argues America should do, help the situation? Artificially debasing a currency is both dangerous and wrong.

It would be great to see Krugman debate Art Laffer live on T.V. Many of today’s youth and intelligentsia read Krugman’s Marxist-tinged drivel because it appears in print in the New York Times multiple times a week. But given the opportunity to be rebutted, Krugman would have no leg to stand on.

In a somewhat related piece, Pat Buchanan lays out that the U.S. has done much of the damage vis a vis China, to itself, with the help of the GOP. In order to sate the appetites of corporate interests, the U.S. gave up its support for democratic Taiwan to open the billion-person market of Mainland China. At the same time, American jobs were shipped to the Middle Kingdom in order to send back cheap products to stock the shelves of Junk-Marts across the country. At this point, let no one say that America has pursued a successful strategy in regards to China.

The Trial of Ahmed Ghailani – Dick Young

As many predicted, the trial of a terrorist was turned into a farce. The radical, Eric Holder-led Department of Justice nearly failed to convict Ghailani at all. Out of 285 charges against the terrorist, he was only found guilty of one. The DOJ was given years to prepare this case, and it failed miserably. As if the act of using civilian courts to try a radical terrorist who isn’t even an American wasn’t bad enough, now the families of Ghailani’s victims could very well watch this monster walk free again one day.