Krugman: On the Edge of Catastrophe (much of Republican Party trying to push economy over the edge)

[RedEarth]

A not-so-funny thing happened on the way to economic recovery. Over the last two weeks, what should have been a deadly serious debate about how to save an economy in desperate straits turned, instead, into hackneyed political theater, with Republicans spouting all the old clichés about wasteful government spending and the wonders of tax cuts.

.......

It’s hard to exaggerate how much economic trouble we’re in. The crisis began with housing, but the implosion of the Bush-era housing bubble has set economic dominoes falling not just in the United States, but around the world.

.........

Worst of all is the possibility that the economy will, as it did in the ’30s, end up stuck in a prolonged deflationary trap.

We’re already closer to outright deflation than at any point since the Great Depression. In particular, the private sector is experiencing widespread wage cuts for the first time since the 1930s, and there will be much more of that if the economy continues to weaken.



.........


So what should Mr. Obama do? Count me among those who think that the president made a big mistake in his initial approach, that his attempts to transcend partisanship ended up empowering politicians who take their marching orders from Rush Limbaugh. What matters now, however, is what he does next.

It’s time for Mr. Obama to go on the offensive. Above all, he must not shy away from pointing out that those who stand in the way of his plan, in the name of a discredited economic philosophy, are putting the nation’s future at risk. The American economy is on the edge of catastrophe, and much of the Republican Party is trying to push it over that edge.

http://www.nytimes.com/2009/02/06/opinion/06krugman.html?_r=1&pagewanted=print

[madaboutharry]

1. Can someone please help me understand

what it is about republicans and republican philosophy that is causing them to behave this way? I just don't get it. Do these people controlling the republican party actually want this country to collapse? This is what it sounds like to me. Obama needs to call them out on their fascism, in the charming way he knows how to.

[Aviation Pro]

4. To paraphrase the Rude Pundit......

...they are motherfuckers and given the chance they will always fuck mothers.

[elizfeelinggreat]

5. Yes, they want it to collapse

They ALL "hope he fails". They cannot be bipartisan in any way, that's not how they function. They need an enemy and will do anything to get one.

[Joe Chi Minh]

39. Yes, they have their moated states and doubtless similarly-protected shopping precincts.

Also, teleshopping and probably armoured cars and bodyguards for tris elsewhere.

[Skittles]

7. they care more about 2012 than they do about America

they have always put their party above the interests of their country

[amandabeech]

38. They care about fundraising for 2012 than they do about the U.S., too.

When things go really wrong for the fat cats, they may be more interested in compromising with the po' folks representatives than they are now.

Also, don't forget 2010. I'm sure that the repugs want some more gains, especially in the states and in the U.S. Senate.

By elections take lots of dough, too.

[natrat]

44. please, they are going to buy you for pennies on the dollar

they are going to buy your wife,your children and your dog. You think they give a shit about some election they own electronically? You think Obama is going to change voting in this country? They are literally taking our money as we speak with obama's help, we will be lucky if we are not turned into slaves next because they will surely be taking for years to come. That's your fucking hope.

[natrat]

45. financial coup

"In the fall of 2001 I attended a private investment conference in London to give a paper, The Myth of the Rule of Law or How the Money Works: The Destruction of Hamilton Securities Group.

The presentation documented my experience with a Washington-Wall Street partnership that had:

* Engineered a fraudulent housing and debt bubble;
* Illegally shifted vast amounts of capital out of the U.S.;
* Used “privitization” as form or piracy - a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder.

Other presenters at the conference included distinguished reporters covering privatization in Eastern Europe and Russia. As the portraits of British ancestors stared down upon us, we listened to story after story of global privatization throughout the 1990s in the Americas, Europe, and Asia.

Slowly, as the pieces fit together, we shared a horrifying epiphany: the banks, corporations and investors acting in each global region were the exact same players. They were a relatively small group that reappeared again and again in Russia, Eastern Europe, and Asia accompanied by the same well-known accounting firms and law firms.

Clearly, there was a global financial coup d’etat underway....."

http://solari.com/blog/?p=2058

[wryter2000]

14. Yes, I think they do want the country to collapse

Then, they think they can blame it on Obama and the Dems and take back control of the country. They honestly don't give a &^*)*( about this country. It's all about them.

[NorthCarolina]

33. Their goal has been to eliminate the middle class. They tried to do it with Legislation

and they got pretty damned close but then the clock ran out on the Bush presidency. Now they will let the total collapse of our economic system finish they job of eliminating the middle class, Social Security, Medicare/Medicaid, etc.

[indepat]

15. 'pukes, imnsho, would rather the country collapse if they cannot have unfettered control as they had

for eight years. Besides, they'll then get to blame the Dems. :P

[starroute]

17. They hate us for our freedom

And no, I am not joking. These are people who are terrified of losing the control mechanisms that keep most Americans dependent and subservient. They are terrified of Social Security, universal health care, a living wage -- anything that allows people to exercise power over the conditions of their lives, walk away from bad situations, and enjoy meaningful options.

It isn't just that they want Obama and the Democrats to fail. For many of them, the ideal situation would be one of medieval serfdom for the vast majority and unfettered power for a tiny elite. And they see a crippling Depression as the best way to get there.

[FiveGoodMen]

24. Yup.

They hate freedom as much as anyone ever has.

(Except for their complete freedom to act outside of the law without consequences.)

[Tansy_Gold]

34. You are absolutely correct

They have worked very hard over the past 30 years (and less hard before that) to consolidate wealth and power into the hands of a tiny (but deserving!) few.

Unless and until economic "reform" addresses the concentration of wealth, there will be no "recovery." All the current proposals for shoveling borrowed government money into the "economy" are merely vehicles for funneling additional wealth into the hands of the already super-wealthy.

Understand this: The GOP is the party of monarchy, of absolute divine right kingship, of feudal life-and-death authority right down to ius primae noctis. THAT'S what they want, and they will stop at nothing to obtain it.




Tansy Gold

[raccoon]

48. This is a keeper,

"These are people who are terrified of losing the control mechanisms that keep most Americans dependent and subservient. They are terrified of Social Security, universal health care, a living wage -- anything that allows people to exercise power over the conditions of their lives, walk away from bad situations, and enjoy meaningful options."

[Two Americas]

20. which country?

The Republicans work for and answer to the wealthy and powerful few. There is no "ideology" involved. They are doing what they have always done - ruthlessly and relentlessly promoting the needs and desires of the wealthy and powerful few. There is no political entity fighting for us, the other 99% of the population, to counteract that.

Failure to understand this - and it is all right out there in plain view - is failure to oppose the Republicans in any meaningful and effective way. But we cannot mention that, because that would be "disloyal" to "our team" and our supposed allies will then aggressively shout us down and do whatever it takes to confuse, discredit and intimidate anyone who speaks out about this.

The clock is ticking, and the consequences of this are going to be horrific. But we cannot say that either, because that would be "negative" and there are those among us who are more interested in their own personal emotional state and feeling good then they are about the suffering of others around them, and will shout us down and demand that everyone "think positive" and feel good about things.

[roguevalley]

25. they sent an email around stating that if this works they will never

get elected again. they therefore said oppose it lock stock and barrel and make it unanimous. They put party over country.

[johan helge]

43. Do you have a link? (nt)

[LynnTheDem]

26. Yes. If Obama & the Dems succeed, what happens to the Republic Party???

They'll be out of power for years.

So yes, as republics have themselves pointed out, they do indeed want America to fail.

[Doctor_J]

27. They have SAID they want it to collapse

Their leader, Limpballs, says he wants it to fail so that the Dems won't get elected in 2010.

[VPStoltz]

29. They do!

And they can't stomach the thought of young, intelligent, BLACK president turning the country around AND the world in our favor.

[Joe Chi Minh]

40. I would like to see Obama and his family installed in a bomb-proof bunker,

rather as Cheney was alleged to be. Though I never heard about it being bomb-proof.

[Old Codger]

2. No Doubt About it

Rpugs don't give a rats ass for the rest of the country as long as the fat cats get theirs, complete and total obstructionism....

[CJCRANE]

9. But it's like the scorpion and the frog...

the repubs/fatcats will go down with the rest of us if they continue on this course.

http://en.wikipedia.org/wiki/The_Scorpion_and_the_Frog

[Old Codger]

11. WE Know That

But they can't see that far, their greed blinds them to the truth just as * was blind to anything real, they live in some fantasy world where it is a never ending cornucopia of wealth draining into their and their friends bank accounts. Only someone totally oblivious to facts could blindly follow a so-called "leader" like * for 8 years and then proceed to nominate someone as ignorantly deluded as McCain and a piece of fluff idiot girl to run as they did.

[Jakes Progress]

21. They don't plan on going down.

They know that most will be miserable, that the poor, the middle, and the rich will suffer. But they see themselves as above that. The crazy thing is they convince assholes who make a couple of hundred thousand a year that they should support republicans. These idiots do and then get screwed by the uber rich. Then, because they are idiots, they blame the Democrats. It is the very definition of the word idiot.

[relayerbob]

50. Actually, the craziest part

is they get a large number of very poor people to side with them also. They are held down, face in the dirt, by these jerks, and then every four years listen to the hate-mongers and go vote their fears, while getting robbed blind.

[panader0]

3. Good post. I read a Krugman column a week or so ago

and he said the stimulous wasn't big enough. By the way, I like your sig line.

[Skittles]

6. Obama, FIGHTING AGAINST REPUKES IS FIGHTING FOR AMERICA

GET WITH THE PROGRAM

[bemildred]

8. Better to rule over the rubble then give up power. nt

[Vinnie From Indy]

10. Amen Mr. Krugman!

Krugman is absolutely right! Now is the time to directly take on Rush Limbaugh, Clear Channel and the rest of the gargantuan right wing media. I think all of us need to commit to doing something to counter and fight the likes of Rush Limbuagh in our local communities. I, for one, will commit to compiling a list of local Limbuagh advertisers here in Indianapolis and posting it on DU. Any Hoosiers willing to help would be appreciated. Maybe we can make our efforts to boycott and demonstrate in front of local advertisers here a model for other communities to flush Rush.

I also think that we should consider devoting an entire, permanent discussion category on DU solely devoted to organizing and sustaining community activism against the likes of Limbaugh. Limbaugh is vulnerable to LOCAL pressure. His national advertisers could really care less as they are mostly snake-oil companies. It is the local Ford dealer or jewelry store or siding company that can be made most easily to see that advertising on Limbuagh's show is a losing proposition. This is a fight that we can win if the battles are fought locally.

[debbierlus]

12. Republicans and DINOS need to be fought & exposed for the parasitic leeches they are

Not appeased and coddled with calls of bipartisanship.

I hope Obama understands this now.

He tried the bipartisan trip. It didn't work. He weakened OUR stimulus bill in acquiescing to the thieves. Okay. So, he can now say he tried, but he will not put the healing & recovery of the nation second to meeting irresponsible demands of the Republican party.

Period.

[NM Independent]

13. Go Krugman!!

We love you, man :)

[BlueMTexpat]

16. Truth to power ...

Obama has tried to *make nice* ... and he did say that he would, so he had to try it.

But efforts to *make nice* are only seen by Rethugs as weaknesses. They haven't learned and they haven't changed. They never will. They have wasted enough time.

Bravo, Krugman. :kick:

[vinylsolution]

18. Conservatism doesn't work....

Repeat, repeat, repeat....

[SharonAnn]

49. Scrub, Rinse, Repeat. - Scrub, Rinse, Repeat. - Scrub, Rinse, Repeat.

[katty]

19. Yes, big time offensive-let some banks fail, seize big banks

take charge if the ReThugs are unwilling to budge!!

[Jakes Progress]

22. Right. Every time he puts pen to page

he is right. We do not heed his warnings at our peril.

[Lydia Leftcoast]

23. Reader comment #33 is awesome

By the way, I agree with Krugman. I lived through the stagflation of the 1970s and the Reagan Recession of the 1980s as an adult, and I've never seen this many jobs lost so fast. :scared:

[Jakes Progress]

28. 33?

[Lydia Leftcoast]

31. On the original NY Times website

:-)

[ozymandius]

32. Here's the text from comment #33.

I'll give him six months before I make up my mind, but so far Bam is a disappointment. I don't know why I'm surprised, clearly $63 million dollars from Finance Insurance Real Estate industries apparently trumps 67 million votes.

If Obama were serious,
1. The criminals who caused this financial disaster would all be facing RICO charges instead of getting $18 billion dollar taxpayer funded bonuses.
2. Instead of Geithner (tool of the NY Fed) we'd have Volcker (the man who tamed inflation back in the 70s) Instead of Summers (failed college president) we'd have Nouriel Roubini (the NYU economist who called this disaster three years ago)
3. Instead of throwing good money after bad, he'd declare a bank holiday, send in the auditors to force banks to mark to market then nationalize the insolvent banks, give the bond holders a hair cut, guarantee the depositors, then start a Federal "good bank" that would function like a utility.
4. Just like Roosevelt in the depression, he would cancel the derivatives contracts that threaten the system.
5. Force 'cram downs' where banks adjust mortgages down to match underlying market realities and then give the bondholders 80% of the upside if the houses appreciate.
6. Rewrite the extremely punitive bankruptcy law that the credit card companies and their cronies (I'm looking at you Biden) forced through in 2005.
7. Launch a real investigation to determine whether speculative manipulation drove oil to $150.

I could go on and on, but now is the time to start thinking about a 2012 primary challenge. I would also suggest that you consider your contingency plans given the possibility of S&P500, Dow 5000 and a dollar collapse. I'm not saying put everything you have into gold, just make sure you're not going to be standing in a line at a soup kitchen if everything goes into the can, because it's a real possibility.

— AS, Chicago

[Lydia Leftcoast]

35. Yeah, that's the one

The Establishment isn't treating the financial wheeler dealers like the common criminals that they are.

Shoplift food from a grocery store when you're living on the streets or sell some marijuana to a cancer patient, and you're part of the crime statistics.

Swindle vast numbers of people out of billions of dollars and the elites will still invite you to their cocktail parties and tell the media that you "just made a mistake."

[Hugin]

36. I'm thinking the last part of point #3 is a good idea... A real 'National' bank.

Catering to individuals and some small businesses.

It would serve several positive processes... It would force the private banks to truly compete in order to survive and it would render the whole 'credit score' extortion racket obsolete.

[Jakes Progress]

42. OMG yes!

Please post this as part of an OP. Please.

These sound like real solutions instead of more crap from the horror film: "Washington: the monster that ate America"

[tide72]

30. It's time to consider a truly socialistic solution to our problems...

go to Democratic Socialists of America (http://www.dsausa.org/dsa.html) for more information. It seems to me that scientific socialism is the only answer in this time of economic crisis. I have come full circle in my understanding of the problems we face... I was a Reagan Democrat in 1980, voted for GWB in 2000 and 2004, and turned to Obama in 2008 after I saw the light and the destruction of the Republicans from 2004 forward. I have since progressed to the socialist point of view and feel that I have seen the light.

[Joe Chi Minh]

41. What was good enough for Einstein, should be good enough for us.

[Myrina]

37. What O should have done ...

... is had them all for a 'nice' meeting, then at the first sign of their typical GOP petulance, had a meeting with the joint houses - Dem and GOP - and said "Look bitches, I won. I'm the boss. Get in line and start marching. NOW." and had this stimulus shit signed and put away last week.

I'm extremely disappointed at his continued attempts to play nice with cretins who know not what the term means. :mad:

[DemReadingDU]

46. exactly

Obama needs to veto down this stimulus bill full of tax cuts. Tell the Dems to get a real stimulus bill with jobs and provisions for critical services. No tax cuts for the wealthy. If the Republicans filibuster a bill without tax cuts, so be it. The repubs would be seen as blocking the recovery for the American people.

[democracy1st]

47. thank you mr Krugman