Once again Paul Krugman brings da truf with his short blog post about U.S. borrowing. One of the constant fears in this economy is where the Hell are we getting money? The (correct) assumption is China and other countries are willing to finance our trade deficit. This instinctually freaks everyone out because it just seems wrong on a gut level. The government shouldn’t be able to just spend money that it makes out of air and Tim Geithner’s resumé. Thus one of the cliché critiques of the stimulus plan is “where are we going to get the money?” A good way to sound smart has been to talk about the trade deficit and what happens when Asian economies stop buying dollars. But then the Krug Man comes through with a graph like this:


Yeah, he brings it. Turns out we’re borrowing less than we did before. The problem isn’t that the stimulus economy is unsustainable, it’s that our entire economy this whole time has been unsustainable. Krugman’s not an alarmist, he’s a brilliant economist with some very real concerns about the fundamental structure of the U.S. economy. We may be screwed, but not in the way that some people think. We’re far more generally screwed than that. We might not like the news he gives us, but very few people are ready to match wits with the one and only Paul Krugman

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