Great piece by Mike Shedlock. Paul Krugman is like a doctor who misdiagnoses a patient and then doubles down on the treatment when the initial attempt fails. We have never run up so much government spending so fast, the "one-time" stimulus package has been in effect every year since the Democrats controlling the Senate refuse to pass a budget and instead just maintain stimulus-level spending through their on-going resolutions.
What makes that so maddening is that tax revenue is now back up to pre-crisis levels (http://www.huffingtonpost.com/2012/04/19/state-tax-revenues_n_1437986.html?ref=business), meaning that the deficit problem is all on the spending side with repsect to where we were before the housing bubble burst.
Mish's Global Economic Trend Analysis: You Don’t Need to be a Lefty to Support Krugman (You Just Need to be Economically Illiterate)
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