Ask a Keynesian Anything

I am a Paul Krugman fan and Keynesian. Ask me anything. Here is what I believe

>Debt isn't a problem
>Budgets will balance themselves
>Debt is good for an economy
>Gold standard is a bad idea
>FED is awesome

Other urls found in this thread:

contrakrugman.com/
en.wikipedia.org/wiki/Keynesian_economics
twitter.com/AnonBabble

1. Debt isn't an issue debt to GDP ratio is the issue

2. Not sure what you mean by this

3. Depends on what the debt is spent on. If it's spent on useless wars then it isn't.

4. Agreed

5. Don't know enough about the fed except it didn't do what it was designed to do.

>1. Debt isn't an issue debt to GDP ratio is the issue
No, debt is. Because for every dollar of debt there's a bond holder, nothing to do with GDP

>2. not sure what you mean
If we stopped increasing spending, within time the debt will be paid off providing nothing gets in the countries way

>3Depends on what the debt is spent on. If it's spent on useless wars then it isn't
Doesnt matter

>agreed
Good

>Don't know enough about the fed except it didn't do what it was designed to do
It does exactly what it was intended.

fuck off kike

What is your input about Greece?

ok, why havent you killed yourself yet faggot?

Also, what is your input about the early 2000's Argentina?

contrakrugman.com/

Fuck off, Free economy (with only slight regulation when it comes to degeneracy and basic health and safety) is best economy.

Ho, and while I am at it, our debt s already 100% of the GDP and raising. The president promised only 3,4% more this year but he will probably make more. We already felt from AAA to AA.

Any comment? An advice?

Debt is great if you're a Jew. to everyone else it's slavery to usurers and thieves.

Keynesian-ism works because the United States hold the esteemed title of having the worlds reserve currency. Whenever a global economic calamity hits, other countries citizens go into a mad dash to trade in their nations currency's for Dollars. In effect this acts as a heat sink for inflation, Thus giving the FED a blank check for printing money. If anything the Fedhead's always complain about not even being able to reach the target rate for inflation (Despite the massive amount of stimulus and printing)

>I am a Paul Krugman fan
>I know Economics

Pick one.

Keynes was the only non-Jewish economist of any note.

They deficit spent over the interest reduction line. Basically they spent so much the interest on their debt increased more than GDP, that's the case because they have a low GDP from tax evasion, laziness, and lack of industry. For America to get in their situation they'd have to spend run a 300% deficit at 9 trillion a year.

Also Greece kept increasing expenditures, budgets balance themselves if the expenditures DO NOT increase, even if they are currently being paid by deficits.

>free economy
>ban anything i don't like because muh degeneracy!!!!!

That's because France keeps increasing expenditures. If France made an agreement right now to NOT increase Federal expenditures, then overtime the debt would decrease and eventually be paid off.

Why is Krugman so fucking smart?

1) Have you read "War is a Racket" by General Smedley Butler?
2) Is all debt good debt? I mean this on a government side. Is war debt as good as social debt for social benefits paid to citizens/aliens?
3) If debt is good, why did the 2007-2008 crash occur? Was the devastation of bank accounts by private holders worth it for the major banks to be bailed out and come out on top?

>budgets will balance themselves
lmfao k kid

>I know econonomics
>I don't respect Paul Krugman and agree with everything he says
Pick one

It would work even without the world reserved currency.

>Paul Krugman fan
Make it less obvious. There are semi-reasonable keynesians.

true
but without it, the Global financial Crisis would have had a more devastating effect on the average American.

>Have you read "War is a Racket" by General Smedley Butler?
No, but I heard about it and agree with the main idea.

>Is all debt good debt? I mean this on a government side. Is war debt as good as social debt for social benefits paid to citizens/aliens?
By debt is good I don't mean for what the debt is paid too. I mean it's good to have treasury bonds in existance as a risk free investment to loaners. This keeps bank-runs from happening, but I'd rather have the debt be spent on something useful than war

>If debt is good, why did the 2007-2008 crash occur? Was the devastation of bank accounts by private holders worth it for the major banks to be bailed out and come out on top?
Banks held too many risky investments instead of treasury bonds. This actually is for my point, if the banks held a higher percentage of treasury bonds (risk free) rather than risky sub-prime loans the crash would have been less disasterious. I disagree with the bailouts because that was corporate welfare.

LMAO k kid, every major economist disagrees with you.

>fake quote
At least try

You're convincing money printing with keynesianism. Although most keynesianists agree with some inflation keynesianism doesn't necessary advocate that, many just believe in deficits.

U should see a doctor pal.

Hayek said hi
How's life after the long run?

>For America to get in their situation they'd have to spend run a 300% deficit at 9 trillion a year.
So, if they spend less, as long as it increase faster than the GDP and inflation, it will happen to America too but in the distant future?

>That's because France keeps increasing expenditures. If France made an agreement right now to NOT increase Federal expenditures, then overtime the debt would decrease and eventually be paid off.
You just said
>Debt isn't a problem
>Budgets will balance themselves
This is a contradiction. Our president is very ardent on his desire to reduce the debt. It is his n°1 priority, and even him can't do shit. The army is already operating 40 year old ships and weapons, our millions of niggers will burn and loot if the gibs stop, hard-working families already have nothing, retired people weight too much... It is the fate of democracies: everyone discovered they can live off other's people money. And we already are one of the most heavily taxed country IN HISTORY

Budget won't balance itself.

Fag

What i'm talking about is Super Keynesian-ism
Glorious Economic Imperialism!

>Keynes was the only non-Jewish economist of any note.
>Paul Krugman fan

>This keeps bank-runs from happening
There wouldn't be any fear of bank runs if banks could repay their customers.

He said it, but if you want some other good ones, Krugman is a gold mine.

You should see a shrink, disagreeing with literally the most well respected economist

It's fine, because the children of the previous generation live a good life thanks to a Keynesian economic system.

Protip: we are after the long run he talked about.

nigger

>the children of the previous generation live a good life
hahaahhahahaahAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH

Never change, my lad. Never change.

every fiat currency goes to zero eventually. Ill just assume that's your goal.

oh don't worry, they haven't quite opened the floodgates yet
there's a new long run, but it's not so long now

>So, if they spend less, as long as it increase faster than the GDP and inflation, it will happen to America too but in the distant future?
No, if they spent any less their debt would eventually be paid off overtime automatically. However that isn't practical since it would take many many years. I could calculate it on Demos if you want.

GDP growth = (4.5/100)x squared right now

Interest would have to increase at 4.5% a year. Since the interest is 1% of the debt, it would require spending 450% of the revenue to exceed the point where it would be crisis. So actually around 12 trillion a year. You can desmos it if you have the proper forumla, got too many people to respond to though

>This is a contradiction. Our president is very ardent on his desire to reduce the debt. It is his n°1 priority, and even him can't do shit. The army is already operating 40 year old ships and weapons, our millions of niggers will burn and loot if the gibs stop, hard-working families already have nothing, retired people weight too much... It is the fate of democracies: everyone discovered they can live off other's people money. And we already are one of the most heavily taxed country IN HISTORY
That's because expenditures keep increasing. I'm saying if expenditures suddenly stopped increasing which shouldn't be that hard for a country to do then the budget will be balanced.

However we all know next year Macrons budget plan will double gibs and increase the expenditures even more.

When that happens, you simply just replace it with a new currency and dictate the starting value by using the old one as a reference.

1,000,000 old dollars is now worth 1 "New Dollar"

General Butler's book is 70 pages and worth a quick read. To boil it down, in time of need, the government will pay anything for whatever it needs. Its simple economics, where demand is driving the price. Real or manufactured crises will always inflate the price of goods due to increased demand. If society wants to accept debt, they should put out guidelines for the reasonable price of goods. A reasonable but moving fixed price should be implemented to keep inflation from driving up prices. Had that ever been considered, we would not be 20 trillion in debt.

>FED is awesome

Yeah I have a question, do you actually sit in the room while the other guy fucks your wife or do you like to hide in the closet and peak through the cracked door?

It's actually a very smart system. I'm against the primitive aspects of American imperialism like GITMO and the war crimes but overall America should maintain petrodollar currency. Without it some other country will, possibly Russia or China

I am not anti-semitic, im just pointing out if you're looking for a non-jewish economist Keynes is your man

>There wouldn't be any fear of bank runs if banks could repay their customers.
They couldn't though, too many defaults on subprime debt

>He said it, but if you want some other good ones, Krugman is a gold mine.
He was right at the time. 90s Tech boom slowed down, the internet grew a lot slower. This isn't any major prediction he's just pointing how the tech boom will not last forever. The fax machine part was stupid though possibly just an exaggeration on how the internet will not fix everything like many ""experts"" were saying at the time.

Nothing bad, because the "every currency" fails is a misleading argument. Every nation state in history has failed eventually, doesn't mean we should all be anarchists

>You should see a shrink, disagreeing with literally the most well respected economist
I was lurking this thread until you went full retard. Well respected economists all disagree with each other, economy isn't an exact science, it mixes mathematics with sociology. If economics were so simple there wouldn't be so much poverty and misery in the world.
KYS
Y
S

Buy bitcoin retard. That's your super stable Fed-free money.

I have a different opinion than you buddy

Price controls result in empty shelves though and eventually a black market of basic goods. If people have the money for things and are willing to pay a price the price will rise. Goverment control will make it worse.

He called me it first

>Buy bitcoin retard. That's your super stable Fed-free money.

>what is gold

>if they spent any less their debt would eventually be paid off overtime automatically
So, you agree that budgets don't balance themselves and someone have to cut the costs somewhere so we don't exceed a line that is far under where we are right now?

>Interest would have to increase at 4.5% a year.
Are you mad? I told you our debt is 100% of the GDP. Do you really think we can spend 3 time the military budget in the charge of the debt?

If the inflation rate become 4,5, we and most western countries go bankrupt.

On another topic: powerful people own real estate and an increasing interest rate will lower the prices. It won't happen that easily.

>which shouldn't be that hard for a country to do then the budget will be balanced.
Except, you cleaver idiot who think he have thought of everything that we are a republic, not an absolute monarchy. Decisions are made accordingly to political pressures and electoral calendar. No one can do shit. No one control the machine.

>Budgets will balance themselves
I suppose if I set everything on fire it will rebuild itself too

Germany did this and your bankers pushed your government to join a war against them.

Gold is less unstable than bitcoin, but it is no longer a refuge value. It is now a speculative market.

>If we stopped increasing spending, within time the debt will be paid off providing nothing gets in the countries way
Well thats the problem isn't it? We can't go ten years without SOMETHING getting in the way.

>So, you agree that budgets don't balance themselves and someone have to cut the costs somewhere so we don't exceed a line that is far under where we are right now?
No. No one has to cut anything. In fact we could increase expenditures to 449% of revenue, as long as from that moment on we don't increase it anymore it will be paid off.

>Are you mad? I told you our debt is 100% of the GDP. Do you really think we can spend 3 time the military budget in the charge of the debt?
That's not much, at 1% interest that's literally 1% of GDP going to interest, not much at at all. Your economy literally grows at around 3% a year

>If the inflation rate become 4,5, we and most western countries go bankrupt.
Inflation speads up GDP growth even further and lowers the debt even further
relative to the GDP even faster

>On another topic: powerful people own real estate and an increasing interest rate will lower the prices. It won't happen that easily.
Yep, that's true

>Except, you cleaver idiot who think he have thought of everything that we are a republic, not an absolute monarchy. Decisions are made accordingly to political pressures and electoral calendar. No one can do shit. No one control the machine.
Idiot, people often demand for debt to be reduced, it's one of the biggest populist rethorics.

>comparing an already proven mathematical equation to some bullshit about things rebuilding themselves after a fire

True.

>retard flag
>likes krugman
>keynesian
>approves of the fed
you're the ultimate moron

kys

>not agreeing with unanimous economic thought
MORON

>strawmanning this hard.

yes, and Britain was blackmailed under the threat of German occupation to give up their currency's reserve status to the U.S.

>No. No one has to cut anything. In fact we could increase expenditures to 449% of revenue, as long as from that moment on we don't increase it anymore AND THE RATE DON'T INCREASE IN YEARS it will be paid off.
Tha'ts a dangerous game.

>The government spending 1% of the GDP is nothing at all
There is a reason no one take this economist seriously anymore. 1% of the GDP is big spending.

>Your economy literally grows at around 3% a year
After years of a slow recession, we are now enjoying 0,5% of economic grow.

>Inflation speads up GDP growth even further
Except we can't tell private people to lend us money under the inflation rate. Inflation increase, they ask for a lot of money that we don't have. We ask them for more money: they understand we won't pay it at some point, we become a toxic product no one want to touch, and unless some emir give us free billions, it's the end of the road.

>Idiot, people often demand for debt to be reduced, it's one of the biggest populist rethorics.
I haven't seen that. It became a concern only recently, and it is still much less powerful than giving ton f money to old people so they will die late and live in abundance, or to give billions to the "disfranchised" youth. Everything else pass before balancing the budget, even climate change.

>Idiot, people often demand for debt to be reduced, it's one of the biggest populist rethorics.
In the case of Greece, have it happened?

Honestly I believe the future isn't any one store of value. With new technology the ability to buy and hold various assets to store wealth and to be used as a means of exchange.

The future isn't relying on any one fiat currency. I think a national fiat currency is convenient if nothing else, but as a store of value is questionable and I believe with new technology even as a means of exchange fiat will be put to the test.

I actually don't oppose a national currency or even the existence of the Fed, but we are entering a new era in currency.

Currency and monetary norms are constantly evolving and I see no reason to believe this to be true with the current system. We have already seen vast changes within our own lifetimes through credit cards and online banking.

smash every window in a Keynesian's house

it'll increase GDP and be good for the local window repair industry

>>Debt is good for an economy
You know you are talking to a jew at this point.

Is Hurricane Maria good for Puerto Rico's economy?

>it's a good thing to make your entire country indebted to someone
>constantly owing and being unable to pay people back is a good thing!!!

>With new technology the ability to buy and hold various assets to store wealth and to be used as a means of exchange.

kek realized that sentence trailed off, I've had a couple of beers.

I meant to say the ability to do these things has gotten much easier than it has been in the past. I can literally be the proud owner of some gold bullion within the next thirty minutes if I so chose to do so. There are also services in place that will allow me to purchase things with this gold. We live in exciting times for currency/money in general.

What would be an Keynesian solution to drooping ROI(rate of profit)?

Nice b8, guaranteed many replies from those who think you're serious.

Of course it is! Look at the numbers!
Between just after the hurricane and now, the development rate is at least twice what it used to be between one year ago and just before the hurricane.

Please don't notice this one point of data, it's just one point of data.

Governments can always pay back

No

Broken window fallacy

That's not a problem, dropping ROI means more wealth is being put into production rather than profits for the wealthy

No due to cultural reasons and distrust of the EU

>Tha'ts a dangerous game.
Yes, it was just an example to show how the economy can recover from mass debt

>There is a reason no one take this economist seriously anymore. 1% of the GDP is big spending.
True i take it back

>After years of a slow recession, we are now enjoying 0,5% of economic grow
Ok never mind then

>Except we can't tell private people to lend us money under the inflation rate. Inflation increase, they ask for a lot of money that we don't have. We ask them for more money: they understand we won't pay it at some point, we become a toxic product no one want to touch, and unless some emir give us free billions, it's the end of the road.

>
I haven't seen that. It became a concern only recently, and it is still much less powerful than giving ton f money to old people so they will die late and live in abundance, or to give billions to the "disfranchised" youth. Everything else pass before balancing the budget, even climate change.
Ok you won this argument but I will research more before i come back.

Keynes wasn't an economist anyway, he was a social scientist and hated any real economic school of thought like the Austrians.

...

Why do you believe that privatising the printing/issuing of currency is a good idea?
Why do you believe that currencies shouldn't be backed by anything?
Why do you believe that individual debt isn't a problem? Who is going to pay off all of that debt?
Why do you believe that usury is good? It is theft with the disguise of banking. How is this a good thing?

>No, debt is. Because for every dollar of debt there's a bond holder, nothing to do with GDP

Debt generates interesting. If the interest is being paid off well and good.

If the interest is ever mounting and we just don't look at it anymore. Then your entire system is no longer solvent and the only solution will be a final solution to the debt problem.

interest*

lmao interesting.

In any case debt/interest creates a 'race' condition.

If the value of productivity can grow at a faster rate than the value of the debt via interest then the system is fine and dandy.

If the interest builds to such a point that the value of productivity can no longer cope. Then the system is no longer self-stable and needs external influence to fix it.

Either via more printing / lending which is just borrowed time, or forced transfer of clay to pay for the debt (War), or slavery either overt or covert of the whole population.

Fuck off redneck

Austrian economics ins't a real economic school of thought

I don't understand what this is suppose to be stating

>Why do you believe that privatising the printing/issuing of currency is a good idea?
Wut? Government should always create money

>Why do you believe that currencies shouldn't be backed by anything?
It should be backed by credit, that way the government can issue as many as it needs without barrier

>Why do you believe that individual debt isn't a problem? Who is going to pay off all of that debt?
Because for every indebted person there is someone holding the bond. That cancels out the debt by having 0 sum wealth. All the private debt is also private wealth

>Why do you believe that usury is good? It is theft with the disguise of banking. How is this a good thing?
It's not though, it's a form of investment that benefits both parties.

I meant return of investment(sorry feeling bit sleepy)

There will eventually be a default in that case, sad, many such cases.

In all seriousness default is the worse that can happen, and if that happens the debt holder gets compensation by property seizsure.

>Debt is good for economy, goy

>Governments can always pay back
Argentine. Greece.

>No due to cultural reasons
Due to cultural reasons, THE DEBT WANST PAID.
Due to cultural reasons, THE BUDGET WASNT BALANCED.
And do you think Greeks have anything particular that others people don't have? Except too much body hairs, I mean.

Because of cultural reason, t happened to them before it happened to the others. Italy, Spain, Poortugal, Ireland are in the same case.

Mr Keynes, your pizza is ready. Do you want me to cut it in 6 or 8?
Make 8 shares, I am hungry today!

It will raise interest rates which is unfortunate. But falling rate of return of investment is sort of misleading. Debt holders almost always get at least most of what they owed back in the form of compensation, such as property seizure.

You won this argument. I admit it. I am doing more research now so i will win next time.

>are in the same case.
What I meant was: every democracy borrow money as long as they can. Give Greece full access to the interest rate of Germany? What consequence were you expecting your actions to have?

Paul Krugman is respected within the economists community for his work on New Trade Theory. He explained why trade between relatively similar countries like USA and Germany occur and creates gains for both countries. That's why he won the Nobel Prize. Macroeconomics and Keynesianism isn't actually his main area of study.

Please be patient, I need to give my autism a moment to charge up.

I do not expected an actual debate on Sup Forums. We usually just throw feces at each others and don't look at the result.

Congratulation on being open minded, and have a good night.

Alright
As the world is dictated by Keynesian economics currently, why is innovation slowing? Everything is just rebranding of other things.
How do you justify the slowing of technological progress?
Wtf is with planned obsolescence anyway?

Literally all wrong.

>ask me anything
Why are you such a faggot?

you too

Ever since the 80s the world has been directed by Hayekism

Keynesian is a theory of the short run behavior of the economy (the business cycle). It's not a theory of economic growth. Blaming the "slowing of technological progress" on Keynesianism makes no sense.

Keynesianism is an economic theory, political science, and ideology. What you said makes no sense.

The world is neither Keynesian or Hayekian.

1. Hayek and Keynes aren't the only relevant economists of the last 60 years. Macroeconomic theory has grown over the last 60 years.

2. Politicians generally don't listen to economists anyway.

You're retarded. You're not a really Keynesian.

Keynesian economics (/ˈkeJnziən/ KAYN-zee-ən; or Keynesianism) are the various theories about how in the short run – and especially during recessions – economic output is strongly influenced by aggregate demand (total spending in the economy).

en.wikipedia.org/wiki/Keynesian_economics

at first i thought you were doing it to be cute, but you've repeatedly used the bandwagon fallacy to as a means to insult people. Also Keynesianism is fucking shit

Why are you a fag and in what world do you live in that thinks its a great idea to keep interest rates so artificially low?