Krugman Says…

Nobel Laureate Paul Krugman says that the low interest rates out there (even negative rates for inflation protected securities) means money is practically free to national governments (private companies not investing at this time).

Professor Krugman attributes it to a

“deleveraging shock,” in which Nearly everyone is trying to pay down debt at the same time.

Thus, people are practically giving away money.  And, weak as it may be, the dollar is where everyone is fleeing.

But, what happens when we run out of other people's money?  I am guessing Professor Krugman, et al, hope that by then the Great Recession will be over.

Hat tip to the Daily Caller.

Regards  —  Cliff