Yes, we can never run out of cash! Problem solved! Apparently by magic! That Krugman is a magician. How can we have a run on interest rates? "The answer is its not an easy story to tell." Wow. I'm blown away. Where can I get one of those magical PhD things that make people listen no my random ramblings? Apparently Krugman thinks that as long as a country owns it own printing press, they can never run out of cash. See that whole Weimer Republic hyperinflation thing really never happened.
But despite the efforts of the professional fluffer to try to convince the audience that most of our debt is owned by Americans (AKA the we are just like Japan defense), well the facts don't actually agree. From Wikipedia:
- As of January 2011, foreigners owned $4.45 trillion of U.S. debt, or approximately 47% of the debt held by the public of $9.49 trillion and 32% of the total debt of $14.1 trillion.[63] The largest holders were the central banks of China, Japan, Brazil, Taiwan, United Kingdom, Switzerland and Russia.[65] The share held by foreign governments has grown over time, rising from 13% of the public debt in 1988[66] to 25% in 2007.[67]
So you know, lie when it works. That is actually the job of the financial fluffer. Help the head liar be more believable.
Krugman's main argument continues to be "the debt is in dollars, we never run out because we can print the stuff." And he is completely clueless as to what a run on interest rats and a currency actually looks like. For the answer to this, lets look at a trend that is beginning to really take off – countries grabbing their gold with both hands.
- Germany wants its 674 tons of gold back
- Switzerland wants its gold back
- Ecuador wants its gold back
- The Netherlands wants its gold back
- Australia wants its gold back
And that doesn't even count countries like Venezuela and Iran who are also grabbing their gold. Nor does it count the aggressive acquisition of both gold and silver by countries like China, Russia, and India. This is a run away from the reserve currency, which is the dollar.
God help us if more morons like Krugman are still steering the ship.
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