Krugman: Economic Slowdown Could Last 5-10 Years → Washingtons Blog
Krugman: Economic Slowdown Could Last 5-10 Years - Washingtons Blog

Wednesday, June 3, 2009

Krugman: Economic Slowdown Could Last 5-10 Years

Paul Krugman told the BBC today that:

The economic slowdown could last five to 10 years and cost trillions of dollars... any recovery would be "so slow it would feel like a recession".

This mirrors what people like Marc Faber have been saying (Faber is predicting hyperinflation at some point, but thinks that there may be months, years, or decades of economic stagnation before then).

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  1. this is probably very true, because the real truth of the matter is that capitalism is 'failing on the operating table' and collapsing right now, and whatever form of monetary system that takes it's place is going to have to be well thought out and planned, not just hastily put into place. what we're seeing is the END of CAPITALISM as we knew it, because it doesn't work. You could keep it misfiring for decades on artifice like these CDS instruments and printing of fiat money like it's going out of style, but those only cause 'bubbles' that ultimately burst and cause the INEVITABLE COLLAPSE.

    we're going to have to abolish the FED, for starters, and divest the european banks of U.S. assets in a way that keeps them from remote controlling the political agenda here by virtue of their financial hooks into us.

    but this is going to be a very long haul. a very very long haul.

  2. Capitalism has not been practiced in the US for a very long time. What we are seeing is the collapse of the fiat money system and the fractional reserve banking system. We are seeing the inevitable consequence of this government-imposed counterfeiting and fraud.

    It may be the end of capitalism, but not because capitalism doesn't work (we weren't even trying it), but because the government's response to the consequences of their own meddling will be to impose full-blown fascist/communist state control.

    Then we're in real trouble.

  3. I totally agree with you, 12:39 pm poster, you are correct. we're already headed full speed ahead into the fascist/communist state control gig, which of course is a knee jerk reaction to the failed Keynsian bullshit and crap that took us down the 'create fiat money' and 'play a high speed shell game' obfuscation of the fraud occurring in virtually ever sector of this fake; "you can make money from nothing" lie that was the mantra of the past 45 or so years.

    and we are, in fact, in real trouble. real deep trouble. I don't know of a viable reset button to nullify the counterfeiting that's been the root cause of this evil. the totally without properly collateralized debt structure that got us into this mess has really put us in position for at the very least, 5 to maybe 10 years of roll up your pant legs 'merde' to wade thru as we look for another way to trade goods and services for some form of viable, real, non-fiat currency.

  4. Capitalism died because the phonies in charge wouldn't practise what they preached.

    They wouldn't hire the best workers available--only the cheapest--and so their businesses collapsed.

    Oh, wait, maybe all it working out as capitalism would prescribe.

  5. Capitalism and liberty results in intense competition and a fight for survival of the fittest. Businessmen who intially compete successfully find it increasingly difficult to build wealth due to the free market system and the intense competition. As the established business owners and elites grow weary of the competition, they find ways to stifle it and protect their property and interests. They want to shift the power from the consumer to themselves. The elite then use the government to create barriers to true freedom and competition and the system evolves to what it is today. Increasing control , concentration of wealth, deminishing competition and liberty.

  6. actually, think of the 'system' as a rotting corpse that someone kept talcum powdering the shit out of to create the illusion that it hasn't been a rotting, stinking 'corpse' for a long long time.

    that's capitalism in a nutshell. it's always been a rotting corpse, but people always insisted on bowing to it and extolling the virtues of it to everyone else in the rest of the world as if it was a life form in and of itself with mystical powers to create something out of NOTHING.

    people, believing in SOMETHING FOR NOTHING is what got us into putting the talcum powder on this rotting fucking corpse. it was an illusion and now it's burst.


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