Paul Krugman Hitting On All Cylinders
It's always a really good way to start the day when you realize that a Nobel Laureate agrees with you.
Over at his own blog at The New York Times, Paul Krugman manages in two very short posts to hit on many of the topics I've been talking about lately, but to do it with a style, grace and cut-through-the-BS sarcasm that once again makes me envious.
First, as I've been saying for months, Krugman notes that the fiscal cliff is making life exceedingly difficult for deficit hawks because...although they never, ever say it...avoiding the cliff means that the budget deficit will be much, much higher next year. Krugman implies that they have trouble admitting this out loud. I agree and suggest treatment, as long as it's not paid for by a federal program or is a tax-deductible expense.
Second, in a separate post, Krugman validated my post of several weeks ago by slamming the 15 financial services company CEOs who have demanded that Congress and the president deal with the fiscal cliff. Krugman complained about the same thing I did: The CEOs never saying that they're really supporting the same higher deficits that deficit hawks can't bring themselves to admit they want.
Krugman also notes in this second post that the fiscal cliff is causing serious problems for the rating agencies which find themselves in trouble no matter what happens on the fiscal cliff if for no other reason than no one may really care about what they say or do. I said the same thing myself not too long ago and was feeling pretty lonely about it until now.