Mercury Rising 鳯女

Politics, life, and other things that matter

Tuesday Morning News Roundup

Posted by Phoenix Woman on June 9, 2009


— Krugman debunks the “oooh we’re hock up to our eyeballs to China and we can’t borrow any more for any new stimulus plans because inflation will skyrocket” nonsense being used to push efforts to kill the recovery through “fiscal prudence” (aka killing off public spending plans to jump-start the economy). Seems that if anything, we’re less in debt to foreigners, as a percentage of our gross domestic product, than we’ve been since the Clinton years.

Sarah Palin: Rush Limbaugh in a skirt, as far as her effect on the Republican Party is concerned.

— Has the Geithner Plan succeeded? Nate Silver thinks so, but there’s a healthy discussion going on in the comments section, with lots of yesses, noes, and maybes going around.

4 Responses to “Tuesday Morning News Roundup”

  1. Charles II said

    I don’t read Krugman that way.

    Rather, it might be, “We are in hock up to our eyeballs and inflation will skyrocket, but this is the better of two paths forward.”

    Perhaps our net borrowing from the rest of the world has fallen, but (a) we are printing money, and–I’m not sure– this may not be captured in Setser’s graphs, and (b) as Setser says, right now, we’re paying very low interest on loans, but the world is starting to get antsy. The usual consequence of that is higher interest rates. Today, Obama talked about taxes/cutting spending, probably to quell upward pressure on rates, which would kill the recovery. But make no mistake: the debt issued today will become the slow growth, weak dollar, and inflation of tomorrow.

  2. Charles II said

    I think that Kirk’s statement is potentially a crime. It’s certainly enough to get someone thrown out of Congress, assuming they were willing to enforce their ethics laws.

  3. […] by Phoenix Woman on June 15, 2009 As I noted last week, Paul Krugman has been working to counter the anti-stimulus brigade’s attempt to […]

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