Politics and Money

[shermann7]

Paul Krugman - Saying Due to Cyprus and Russian money - U.S. needs Capital Controls - No money leaving - No foreign money coming in

I wonder if anyone has mentioned to Krugman that we have a tightly interwoven global economy!!! One thing this shows is that there is something major going on, and it is probably not good...

http://sherriequestioningall.blogspot.com/2013/03/paul-krugman-saying-due-to-cyprus-and.html

Paul Krugman is seriously an absolute tool for the Central Bankers and Federal Reserve!

He is using the Cyprus stealing of money by the EU as a reason to start Capital Controls in the U.S. to stop foreign money from coming in and U.S. money going out. After all, he says that is what has caused all of our bubbles and caused Cyprus' problem.

He calls it "Cross Money Controls" not what it actually is which is the government controlling everything you do with your money, since they really believe it is theirs or the banks.

This is the most ridiculous argument I have ever read. Yet, Huffington Post always promotes him and his articles.

Portions:

Whatever the final outcome in the Cyprus crisis — we know it’s going to be ugly; we just don’t know exactly what form the ugliness will take — one thing seems certain: for the time being, and probably for years to come, the island nation will have to maintain fairly draconian controls on the movement of capital in and out of the country.

It wasn’t always thus. In the first couple of decades after World War II, limits on cross-border money flows were widely considered good policy; they were more or less universal in poorer nations, and present in a majority of richer countries too.

Over time, however, these restrictions fell out of fashion. To some extent this reflected the fact that capital controls have potential costs: they impose extra burdens of paperwork, they make business operations more difficult, and conventional economic analysis says that they should have a negative impact on growth (although this effect is hard to find in the numbers).

What’s the common theme in these episodes? Conventional wisdom blames fiscal profligacy — but in this whole list, that story fits only one country, Greece. Runaway bankers are a better story; they played a role in a number of these crises, from Chile to Sweden to Cyprus. But the best predictor of crisis is large inflows of foreign money: in all but a couple of the cases I just mentioned, the foundation for crisis was laid by a rush of foreign investors into a country, followed by a sudden rush out.

Now what? I don’t expect to see a wholesale, sudden rejection of the idea that money should be free to go wherever it wants, whenever it wants. There may well, however, be a process of erosion, as governments intervene to limit both the pace at which money comes in and the rate at which it goes out. Global capitalism is, arguably, on track to become substantially less global.
And that’s O.K. Right now, the bad old days when it wasn’t that easy to move lots of money across borders are looking pretty good.

So there you have it. Him calling for a control of all aspects of what "We the People" would be allowed to do with our money!