World could face a decade-long slump: Krugman

World could face a decade-long slump: Krugman

timesofindia.indiatimes.com

The scenario I fear is that we'll see for the whole world the equivalent of Japan's lost decade in the 1990s, that we'll see a world of zero interest rates and inflation and no sign of recovery and it will just go on for a very, very extended period," he said.

(visit the link for the full news article)

Scary, wonder what more is in store. With the US and Global recession currently underway, this sure could be disasterous!!!
Will this lead to a New World Order Like everyone is talking about? What will happen to all those developing countries?
With the war drums being sounded at every corner of the earth, this sure is not music to my Ears, and coming from someone as reliable as Krugman OMG!!!

timesofindia.indiatimes.com
(visit the link for the full news article)

Let's just say that the decade ahead will in no way resemble the decade past.....and that's a good thing, in the long run

Krugman said Washington should not hesitate to spend on infrastructure that would provide long-term benefit to the country, even if it means running up a high deficit in the short term.

Classic Keynesianism here, no suprise...but what does he consider a high deficit.....8% of GDP.....where would it stop...and what if doesn't make a dent?

We're probably in the US going to run a deficit of seven or eight percent of GDP next year. That's clearly not something you can do indefinitely," he said.

Damn skippy!!

If it's two years of massive stimulus and massive debts, that's okay. If it's two years of that, and no sign that anything is getting better then I start to worry," he added

Ahuh, it's ok to burden the next ten generations in order to not feel a little pain.....but if it doesn't work after two years then he starts to worry?!?!?!?!?

[edit on 9-12-2008 by RolandBrichter]