NEWSMAX / BLOOMBERG: The United States and the European Union are “nowhere close to ending” the financial crisis and German-led austerity efforts may lead to a 1930s-style economic depression, Nobel laureate Paul Krugman said.
Five years into the crisis, the United States needs “another round of stimulus” and Federal Reserve officials “should be doing whatever they can” to aid the recovery, while Europe needs a fiscal union to save its single currency, Krugman said in a speech in Belgrade today.
“Europe must accept there are limits to austerity and that additional austerity won’t do anything but bring societies on the verge of collapse,” said Krugman, an economics professor at Princeton University. “No country will have prosperity until Germany and the ECB have decided that too much pain has been inflicted.” … (more)
Krugman has long been a proponent of printing money to “save” the economy. He would have our hard earned savings obliterated by inflation while prices skyrocket. I point to commodity prices as proof. He wants the German people to shoot themselves in the foot and severely lessen their quality of life because some countries failed to live up to the European Market budget agreements.
EDITOR: Inflation results from near full employment, not when the economy is in a severe recession.