Krugman Gives Up On Obama, Stiglitz Warns On QE2

I can't tolerate Paul Krugman but it's important to keep track of his insanity.  I've said since day one that he and other Keynesians are political economists. 

Here's direct proof, from Krug's keyboard.

• Stimulus, bank rescue, China, foreclosure; it applies all along. At each point there were arguments for not acting; but the cumulative effect has been drift, and a looming catastrophe in the midterms.

• Or to put it another way, the administration has never missed an opportunity to miss an opportunity. And soon there won’t be any more opportunities to miss.

• Epitaph for an Administration --  Krugman

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Also this morning, Joseph Stiglitz, a Keynesian, is warning about QE, again:

• It should be obvious that monetary policy has not worked to get the economy out of its current doldrums. The best that can be said is that it prevented matters from getting worse. So monetary authorities have turned to quantitative easing. Even most advocates of monetary policy agree the impact of this is uncertain. What they seldom note, though, are the potential long-term costs. The Fed has bought more than a trillion dollars of mortgages and long-term bonds, the value of which will fall when the economy recovers – precisely the reason why no one in the private sector is interested. The government may pretend that it has not experienced a capital loss because, unlike banks, it does not have to use mark-to-market accounting. But no one should be fooled.

• Stiglitz -- It is folly to place all our trust in the Fed (FT)

Further reading:

Paul Krugman: Huckster, Liar & Debt Apologist: "We Have 5 Or 6 Trillion To Play With Here"

Paul Krugman's Newest QE2 Fantasy (VIDEO)

And You Thought Bernanke Was Bad: Brad Delong Fantasizes About Replacing Him With A $6 Trillion Quantitative Easer

How Stimulus-Zilla Killed Japan, And Why We'll Probably Suffer A Similar Fate

Stiglitz: The FED's Flood Of Liquidity Is Throwing The World Into Currency Chaos (Ambrose Says $30 Trillion QE2)

WHAT WOULD KRUGMAN SAY -- A Fresh Look At New Zealand's Success SAVING Their Way Through Recession

Christina Romer Only Cares About Elections

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