Comments on: Krugman on Deficit Spending and the Chinese http://cafehayek.com/2009/11/krugman-on-deficit-spending-and-the-chinese.html where orders emerge Mon, 16 Jan 2012 02:06:33 +0000 hourly 1 http://wordpress.org/?v= By: Curious http://cafehayek.com/2009/11/krugman-on-deficit-spending-and-the-chinese.html/comment-page-1#comment-191574 Curious Tue, 24 Nov 2009 18:14:00 +0000 http://cafehayek.com/?p=7358#comment-191574 The government spends first (the potential buyers of treasuries have to get dollars before they can spend them on treasuries) and sells treasuries second. Thus the government doesn't need to sell any treasuries, in order to spend. As far as the Chinese currency I agree with Don. Keeping the yuan pegged to the dollar is identical to China using the dollar as their currency. If that makes them artificially competitive, why not accuse, let's say, New Jersey of the same thing? The government spends first (the potential buyers of treasuries have to get dollars before they can spend them on treasuries) and sells treasuries second.

Thus the government doesn’t need to sell any treasuries, in order to spend.

As far as the Chinese currency I agree with Don.
Keeping the yuan pegged to the dollar is identical to China using the dollar as their currency. If that makes them artificially competitive, why not accuse, let’s say, New Jersey of the same thing?

]]> By: Justin P http://cafehayek.com/2009/11/krugman-on-deficit-spending-and-the-chinese.html/comment-page-1#comment-191479 Justin P Tue, 24 Nov 2009 02:08:00 +0000 http://cafehayek.com/?p=7358#comment-191479 Krugman not being completely honest? Say it ain't so Don! And as usual, Kurgman left just enough wiggle room to cry out "Out of context" when someone calls him on his BS. Krugman not being completely honest? Say it ain’t so Don!

And as usual, Kurgman left just enough wiggle room to cry out “Out of context” when someone calls him on his BS.

]]> By: Anonymous http://cafehayek.com/2009/11/krugman-on-deficit-spending-and-the-chinese.html/comment-page-1#comment-191428 Anonymous Mon, 23 Nov 2009 21:32:00 +0000 http://cafehayek.com/?p=7358#comment-191428 I think Krugman is consistent but wrong. He has consistently told public audiences that the dollar should no longer be a reserve currency. He has consistently advocated some slightly reckless easing to weaken the dollar. He has indicated that domestic savings should be the source of deficit spending. Her has maintained the nihilist line about currency. I think Krugman is consistent but wrong. He has consistently told public audiences that the dollar should no longer be a reserve currency. He has consistently advocated some slightly reckless easing to weaken the dollar. He has indicated that domestic savings should be the source of deficit spending. Her has maintained the nihilist line about currency.

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