Krugman: We are in the early stages of a depression

[I AM NOT THAT GUY 5,715]

The main cause of unemployment in a deflationary environment is the overvaluation

of human labor. Wages do not drop as fast as prices and tend to rise above their

fair market value. When governments try to "fix" the problem by inflating the money

supply, they cause real wages to fall (because nominal wages do not rise as fast

as prices).

The US has this problem in spades, because unions and management artificially setting the cost of labor in excess of demand, the overinvestment in the public sector (to include the military), and an overgenerous pension/welfare system.

Edited June 29, 2010 by ##########

[I AM NOT THAT GUY 5,715]

do you suppose the military works for free? how you gonna keep them on the border if you stop paying them?

No active duty personal are the border. That is a National Guard mission, and except for a few thousand that Obama sent, that bill has been paid by the border states. California built its own border fence, and reinforced the CBP, not the Feds.

[I AM NOT THAT GUY 5,715]

Yes, I have the same source as you. He was telling me that its all a ruse by Stalin. Stalin is actually alive and his plan is to make Americans believe there aren't many jobs when in fact for every American there are 200 job openings. By hiding this fact Stalin plans on giving Obama the power to rebuild the USSR INSIDE the US.

Which source are you referring to? I think I am going to slap the next person that tells me (s)he is going to have to get a job now, because his(her) unemployment is running out.

[Ban Hammer 12,835]

No active duty personal are the border. That is a National Guard mission, and except for a few thousand that Obama sent, that bill has been paid by the border states. California built its own border fence, and reinforced the CBP, not the Feds.

was back in the early 90's to assist cbp. i'd not be surprised if we see that same scenario play out again.

[I AM NOT THAT GUY 5,715]

was back in the early 90's to assist cbp. i'd not be surprised if we see that same scenario play out again.

I wonder if they have their own night vision goggles and ground radar yet.

[Ban Hammer 12,835]

I wonder if they have their own night vision goggles and ground radar yet.

they being the drug dealers? probably on the nvg's, you can buy pvs-7's on the open market.

[Advanced Aardvark 82]

If a depression is coming, let's deal with it sooner rather than later. More stimulus will just delay

the day of reckoning and make a future depression much, much worse.

"Deflation" is not a problem for those who haven't mired themselves in debt, in fact, it's a good thing

for savers.

Yup. If you have no debt and are liquid, deflation is not a problem; it is an opportunity to invest.

Krugman neglected to mention that Japan attempted to stimulate their economy in the 90s with massive infrastructure projects,. just like Obama did last year, and there was no economic benefit, only massive debt.

If Krugman is upset now, he will have a fit after the November elections.

[I AM NOT THAT GUY 5,715]

they being the drug dealers? probably on the nvg's, you can buy pvs-7's on the open market.

No, the border patrol and customs. We sent a few folks to assist them in Smugglers Canyon. Our 1950's technology was more advanced than anything they had.

ETA: We were doing the same thing for the DEA and customs in San Francisco Bay during the 1980's as well. The stuff the Feds issued their agents is #######.

Edited June 29, 2010 by ##########

[Usui Takumi 1,562]

Which source are you referring to? I think I am going to slap the next person that tells me (s)he is going to have to get a job now, because his(her) unemployment is running out.

Then they are fools.

[I AM NOT THAT GUY 5,715]

Then they are fools.

No, just hippies.

[Heracles 417]

Deflation is good if you are a saver. It's not if you're laden with debt (like most Americans.)

Therefore, deflation is not good for Americans or America.

[Heracles 417]

Krugman neglected to mention that Japan attempted to stimulate their economy in the 90s with massive infrastructure projects,. just like Obama did last year, and there was no economic benefit, only massive debt.

Well know fact that massive projects got the United States out of the depression. Furthermore, massive spending on projects is why countries like China and Australia are kicking azz in this global economy.

Obama didn't do this at all actually. What massive federal projects to the likes of Hoover dam was there approved?

[mawilson 2,133]

Furthermore, massive spending on projects is why countries like China and Australia are kicking azz in this global economy.

I'm not seeing any major аss-kicking by Australia and/or China. Staying afloat and doing marginally better, perhaps.

[^_^ 5,021]

What massive federal projects to the likes of Hoover dam was there approved?

The Trans Hudson Passenger Rail Tunnel work is underway, in large part with stim money. I don't know if it's Hoover dam size or not, but it's absolutely huge for the NYC area.

[Heracles 417]

The Trans Hudson Passenger Rail Tunnel work is underway, in large part with stim money. I don't know if it's Hoover dam size or not, but it's absolutely huge for the NYC area.

One new tunnel under the Hudson in what 100 years. One decent project in a country of 310 million. Such projects for China are financed on their government credit cards.