HH dives in:
I’m just over halfway through RGD, and I’m really enjoying the read and the information. I’ve just become interested in economics, and I haven’t yet read much from many of the people you discuss in your book, but it blows my mind how Krugman could seriously believe any of what he writes. It would seem more reasonable to think that he has a mental illness or is a sociopath.
And it belatedly occurs to me that perhaps I shouldn’t have sent a copy of RGD to so confirmed a pessimist as Derbyshire:
“The car has already hit the tree and the bumper is already in the process of buckling inward, so there is no time to turn the wheel or fasten seat belts. It is too late to do anything but scream.”
Thus writes Vox Day in his recent book The Return of the Great Depression. Are things really that bad? And going to get that much worse?
I’m betting that they are. That’s a novice bet, as I am not a trained economist. I base it on a complete lack of seriousness among our political classes. It is obvious that our governments, at all levels, are spending far too much; yet there is little evidence of anyone being willing to do anything about it.
I completely understand those who don’t buy into the economic crisis talk; I can remember back in college how Marxists were supposed to have predicted 12 of the last two crises. But this isn’t the usual airy conjecture about the effect of the rise of Japan or the implications of the Chinese currency peg. This is relatively hard economics based on straightforward math. Unless you seriously believe that an economy can support an INFINITE amount of debt, there is a breaking point. Precisely where that is happens to be unknown, but that doesn’t mean the point does not exist.
But it appears, as per Derb, that I am no longer an outlier… alas. It would appear that my days as a rogue contrarian economist defying the staid order of the mainstream Neo-Keynesian orthodoxy in a bold and sexually thrilling manner are at an end.