Explaining Econ 101 to Krugman

The Nobel prizewinner finds himself in over his head:

There is, if you think about it, an immediate logical problem here: Republicans are saying that job destruction leads to lower wages, which leads to job creation. But won’t this job creation lead to higher wages, which leads to job destruction, which leads to …? I need some aspirin. Beyond that, why would lower wages promote higher employment?

Seriously? Krugman is seriously asking why lower prices promote higher demand? Unbelievable. Apparently the devotees of the Keynesian Cross have forgotten how to draw a basic SD curve. Because lower prices promote higher demand, ergo lower wages promote higher employment.

As for Mellonism, it was never put into practice… which brought about Great Depression I.

F—– by the Fed

The truth about the Fed’s “salvation” of the financial systemforeign banks and corporations finally comes out:

U.S. Federal Reserve Chairman Ben S. Bernanke’s two-year fight to shield crisis-squeezed banks from the stigma of revealing their public loans protected a lender to local governments in Belgium, a Japanese fishing-cooperative financier and a company part-owned by the Central Bank of Libya.

Dexia SA (DEXB), based in Brussels and Paris, borrowed as much as $33.5 billion through its New York branch from the Fed’s “discount window” lending program, according to Fed documents released yesterday in response to a Freedom of Information Act request. Dublin-based Depfa Bank Plc, taken over in 2007 by a German real-estate lender later seized by the German government, drew $24.5 billion.

The biggest borrowers from the 97-year-old discount window as the program reached its crisis-era peak were foreign banks, accounting for at least 70 percent of the $110.7 billion borrowed during the week in October 2008 when use of the program surged to a record.

Bernanke, Paulson, and the various officials and the Federal Reserve and U.S. Treasury deserve prosecution for theft, at the very minimum. It was always obvious that they were milking the American taxpayer for someone’s benefit, but it can’t even be pretended that it was in the U.S. national interest anymore. The Federal Reserve isn’t a central bank, it is quite simply the greatest financial rapist in the history of mankind.

Marriage and the state

Conservatives once welcomed the state getting involved with marriage, despite the fact that it had very little previous involvement with the institution. The result? Instead of strengthening marriage, in less than 150 years, we will have seen marriage devolve from a religious sacrament between a man and a woman to a state contract of indefinite term that can be created by anyone between anyone:

The ACLU of Nevada is challenging Nevada law on who may perform marriages. Currently, the law allows clergy, judges, “commissioners of civil marriages,” and the deputy commissioner to perform marriages. This, it seems is not enough to satisfy the five individuals (shouldn’t that be an even number?) suing Clark County and the state. They would prefer the state allowed any person, regardless of religious affiliation, to be given the authority to solemnize a marriage. More exactly, they believe they have a constitutional right to this policy.

It is long past time for religious individuals to begin pushing for the separation of marriage and state-marriage. I haven’t thought about this long enough to have a solution in mind, but the need is clearly there. And it should be an object lesson to conservatives: Trust not in the State!