Lordy almighty, things really are bad

Paul Krugman (yes, Paul friggin\’ Krugman) is advocating a trade war.

In 1971 the United States dealt with a similar but much less severe problem of foreign undervaluation by imposing a temporary 10 percent surcharge on imports, which was removed a few months later after Germany, Japan and other nations raised the dollar value of their currencies. At this point, it’s hard to see China changing its policies unless faced with the threat of similar action — except that this time the surcharge would have to be much larger, say 25 percent.

Smoot Hawley here we come……

6 thoughts on “Lordy almighty, things really are bad”

  1. “Anyone who writes about trade as a global struggle or war; anyone who compares countries to corporations; anyone who says that trade policy is about creating jobs; anyone who talks about ‘high-value’ sectors; all of these people reveal themselves to be Mercantilists”

    KRUGMAN, P. (1996), “MAKING SENSE OF THE COMPETITIVENESS DEBATE”, OXFORD REVIEW OF ECONOMIC POLICY, VOL. 12, NO. 3,

  2. Well, the braying noises by assorted idiots are getting worrying, indeed.

    In Germany we not only had the Left (Die Linke, the ex-SED) publicly musing to stop educated top earners from leaving the country by making emigration illegal for them or subject to a large ‘compensation’ being paid (…), but also an SPD top level politican came up with the brilliant idea of price control for petrol, ‘since it now is so expensive’.

    True, those guys are well nuts, but alone the fact that this rubbish can be spouted publicly at that level (along with the Tobin tax and other dumb ideas) means that we’re in deep trouble, and pardon me for mentioning Germany, but in my experience, whatever is mooted there also makes it here, and often into Europe itself — stupid ideas like this are the gangrene of civilisation 🙁

  3. Mr. Krugman appears to believe that what one says as an economist and what one says as a journalist are entirely unrelated. I wonder what, if anything, he actually believes.

  4. Paul Krugman has left the building.

    And what Paul believes, by the way, is that one says whatever one believes necessary (no matter how stupid) to keep the worshipful adulation flowing from the Left. Remember, it’s all about the ego.

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