Sometimes synchronicity rears its head and makes me believe in a higher power:
The Krugginator - on the "it's all fake" people who complain about "unbelievable degrees of shenanigans going on with out of control people in high places who believe, or would have us believe, that it is all as simple as shifting things on balance sheets to get them out of the light of day, promoting risk taking and letting an ‘organic’ economy finally take root."
OK in reality Krugman is talking about that clown Peter Singer who was whining about hyperinflation in the Hamptons and how it's an indicator of hyperinflation about to burst forth in the US economy, and not about some blogger.
Even still, quote:
I’d suggest that when Singer talks about a debased currency and fake economic growth, that’s because he really believes that we have a debased currency and fake growth, not as a metaphor for some other kind of economic deception.
And where is that perception coming from? I still think that Brad DeLong’s analysis has it right. What we’re looking at here are traders who looked at historical correlations — while disdaining macroeconomics — and concluded that low interest rates would surely rise back to historical norms. When those rates did no such thing, they looked at the Fed’s intervention — and to them it looked like a big trader distorting markets, London Whale-style, by making huge bets that would surely go bad. So they sat back and waited for the collapse.
And the collapse keeps not happening, because the Fed is not a rogue trader and historical norms for interest rates aren’t relevant in a persistently depressed, deleveraging economy. But rather than acknowledge that they were wrong, let alone that, er, Keynesian macroeconomics has something to teach them, these guys lash out: It’s all fake!
I still await the "massive repudiation of debt as a dishonest system comes apart at the seams".