Jan 31, 2013 No Comments ›› Pat Dollard
A midget amongst his peers…
(CNSNews.com) – Responding to House Budget Chairman Paul Ryan’s warning that if the federal government continues to run annual $1 trillion deficits we will eventually face a debt crisis, liberal economist and New York Times columnist Paul Krugman said Wednesday that that is not a legitimate worry because the U.S. government can always print money and weaken the buying power of the dollar.
Weakening the dollar, Krugman said, would be a good thing.
“The United States is a country that has its own currency–can’t run out of cash because we print the money. If you even try to think what would happen–suppose that investors get down on the United States. Even so, that would weaken the dollar, not send interest rates soaring, and that would be good. That would help our exports,” Krugman said on C-SPAN’s “Newsmakers.”
Krugman was asked whether he thought the U.S. was “in danger of a collapse, a stall, a crisis.”
“No, there’s a whole bunch of reasons why that’s not true. First of all … that trillion dollar deficit is overwhelmingly the result of a depressed economy, and when the economy’s depressed, it’s good to run a deficit. You don’t want the government to try and balance its budget right now,” Krugman said.