Behold the power of a stupid narrative, which seems impervious to evidence. (Krugman, again)

kpete

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Mon Aug-08-11 05:16 PM
Original message

Behold the power of a stupid narrative, which seems impervious to evidence. (Krugman, again)

The Downgrade Doom Loop
It�s not the whole story, but something like this threatens to develop:

1. US debt is downgraded, sparking demands for more ill-advised fiscal austerity

2. Fears that this austerity will depress the economy send stocks down

3. Politicians and pundits declare that worries about US solvency are the culprit, even though interest rates have actually plunged

4. This leads to calls for even more ill-advised austerity, which sends us back to #2

http://krugman.blogs.nytimes.com/2011/08/08/the-downgrade-doom-loop/

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Lint Head

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Mon Aug-08-11 05:19 PM
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1. That is the plan. This is how the Shock Doctrine works.

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kenny blankenship

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Mon Aug-08-11 05:31 PM
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2. That's pretty much how politics in general has worked for the last 30 yrs in this country

Propose something simple and stupid as the solution to all problems; watch solution fail; propose more of the same as the guaranteed fix to all the previous failings of the simple and stupid solution; sacrifice everything of the old order, which was good, beloved and worth saving, to the new simple and stupid solution which has yet to do anything but make things worse.

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mmonk

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Mon Aug-08-11 05:43 PM
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3. Sums it up perfectly. I'm reminded of the adage you can't fix stupid.

Also reminds me of: The willingly blind are the most adamant in their blindness.

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Skink

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Mon Aug-08-11 05:47 PM
Response to Reply #2

5. Is this supply side economics perchance?

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Fantastic Anarchist

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Mon Aug-08-11 05:50 PM
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6. That's exactly what I thought.

Disaster capitalism, pure and simple.

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nadinbrzezinski

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Mon Aug-08-11 05:46 PM
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4. And in that he gets it

what he does not get is why this came to be. Our national political instabilty.

Actually this makes that cycle far worst. Yep. Professor I've seen this movie before... Now I get it in IMAX and 3D... and it is still a sucky movie.

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Jim_Shorts

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Mon Aug-08-11 06:42 PM
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7. Lies, lies and more lies that the media keeps propagating

If tax cuts were what we needed we would be swimming in jobs but NOOOOO we need more tax cuts for the rich and more spending cuts for the rest. I was watching the market meltdown today and at least 4 people on the MSM said that entitlements are the problem and need to be cut. (new best idea: invent a teevee that I can reach through, so I can slap someone)

I fear they have created the perfect storm and it's not going to be much longer for the implosion to happen. Think I'll keep plenty of popcorn on hand for the show.

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