An Austrian Fisking Of Krugman

clipped from www.distributedrepublic.net Money is NOT goods. Inflating the money supply is not the way to prosperity. Government spending is consumption not production. This “plan” is idiotic and will fail, as would your plan. People are going to starve if this keeps up. Not just here but all over the world. We've had central monetary planning and it doesn't work just as Austrian Economics predicts. That's science. Nationalized banks aren’t going to help. This whole mess was caused by government sponsored entities in the first place. The Fed, Fannie and Freddy, etc. Setting interest rates below market is a price control. Like all price controls it causes producers to produce less and consumers to consume more. For interest rates that means low savings (the producers) and high borrowing (the consumers). So that's economics 101 in ANY school of economics. Shame on Alan Greenspan for not following those metrics and shutting down the monetary pumps.