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Disney World, Paul Krugman, and Market/Economic News – Ep. 75

  • Disney’s theme parks are a monument to capitalism as it existed when Walt Disney envisioned Disneyland
  • The Hall of Presidents, however manages to honor presidents who supported big government over the free market
  • The choice of presidents demonstrates revisionist history that supports the liberal, big-government narrative
  • Whenever you expand government you contract liberty
  • The Dow ended the week down 279 points; NASDAQ down 75
  • The search is on for excuses but the real issue is not global causes but U.S. economic performance
  • Housing Starts and Permits were way below estimates
  • Jobless claims were higher than expected
  • Leading Economic Indicators weaker than expected this month after last month’s downward revision
  • Core CPI came in twice expectations, but described as “better than expected”
  • The dollar had a very weak week; Canadian dollar had strongest week in years, with a possible rally going forward
  • Weakness in Stock Market, continuing weak economic data makes June rate hike less and less likely in the minds of traders
  • The most prominent poster boy for the myth of the U.S. economic recovery, Paul Krugman, recently published an article claiming victory for U.S. Keynesian economic policy
  • Krugman claims U.S. is performing better than Europe due to Keynesian policies
  • Perception is not reality: the U.S. is not doing as well as Krugman would have us believe
  • Krugman references an article by Germany Finance Minister Wolfgang Shauble, criticizing him for rejecting macroeconomics
  • Macroeconomics IS B.S. and should be rejected
  • Krugman infers that Europe’s woes are the result of rejecting Keynesianism
  • Shauble warns against going for the “quick fix” of Keynesian policies
  • Germany understands that austerity, rather than debt, is the answer
  • Krugman believes we should continue to create bubbles through stimulus and debt
  • It will be interesting to see what Krugman says when the U.S. economy slips back to recession as Europe grows
  • Europe’s approach was not perfect, but it is better than the politically expedient solution championed by Krugman