Friday, November 19, 2010

Republicans want a depression

It seems like somebody recently wrote that Paul Krugman always finds pernicious motives in those who disagree with him.  Oh yeah, that was me in yesterday's post, "Meet Paul Krugman."  True to form, in today's NYT column here regarding opposition to the Fed's new round of quantitative easing*, Krugman says that "Republicans want the economy to stay weak as long as there’s a Democrat in the White House."  I think we can all agree that if unemployment in November 2012 is anywhere near as bad as it is now, Obama and the Democratic senate majority are toast.  Does that mean Republicans want the economy to continue to falter? I wouldn't doubt that there are a few power-hungry Republican politician's that feel this way, but come on Paul, Republicans in general?  It's not as if we are talking about the failure of the Iraq war which lots of lefties -- politician or otherwise -- rooted for because they felt as if they had no self-interest at stake.  I do not know of a single Republican, conservative or libertarian that feels this way if, for nothing else, the sake of their own pocket book.

*Quantitative easing is where the Fed prints money (sorry borrows money by putting a liability on its balance sheet) in order to buy U.S. treasuries in the open market with the intention of bringing down interest rates.  Lots of extremely well regarded economists have concerns about the Fed's new round on printing money (this round is called QE2), but Krugman has now spoken so disagreement in the liberal ranks would now be apostasy.

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