Glenn Beck: Krugman half right?



Arguing with Idiots: How to Stop Small Minds and Big Government


by Glenn Beck

GLENN: Here's what's coming in our economic news according to Paul Krugman. The next employment report could show the economy adding jobs for the first time in two years. The next GDP report is likely to show solid growth in late 2009. There will be a lot of bullish commentary and the calls we're already hearing for an end to stimulus for reversing the steps of the government and the Federal Reserve and the steps that they took to prop up the economy will grow even louder. But if these calls are heeded, it will be repeating the great mistake of 1937 when the Fed and Roosevelt administration decided the Great Depression was over and that it was time for the economy to throw away its crutches. Spending was cut back. Monetary policy was tightened and the economy promptly plunged back into the depths. This shouldn't be happening. Both Bernanke, the Fed chairman and Christina Romer heads President Obama's Council of Economic Advisors are scholars of the Great Depression. They have warned explicitly against reenacting the events of 1937. You will read the economic news. It will be important to remember first of all the blips, occasional good numbers, signify nothing. The economy, the fact of the economy is we're mired in a prolonged slump. Early 2002, for example, initial reports showed the economy growing to a 5.8% annual rate, yada, yada, yada, goes on. All right, listen. Paul Krugman is half right. Paul Krugman is telling you that we're not out of the woods by any stretch of the imagination. We're not. What Paul Krugman, however, forgets is the great mistake of '37 led to the great mistake of '39 where they didn't listen to the well, it's either the chief economic no, I think he was the head of the treasury and FDR's best friend and a huge, huge fan of the new deal. By 139 he saw that the New Deal didn't work and he saw that the rest of the world had already come out of it. Remember the Great Depression as it's called here in America was only the depression in the rest of the world. We made it a Great Depression because we didn't let things fail and we didn't let things reset. The rest of the world let it all reset. So that's why it's the Great Depression in our history books but if you go over to Europe, it is only called the depression. By the end of 1939 the guy who helped design the New Deal said in his testimony in congress, we see now that none of this works. We've tried valiantly, we've done it over and over again but now it's turned into insanity because it doesn't work, we have to reverse course. What Paul Krugman and nobody else will tell you and I will in the next two days on radio and television is it is imperative that we reset the system because it's coming one way or another. If you use any kind of common sense, you'll know that the reason why we've had so many problems and the problems seem to get bigger and bigger is because we're erasing natural bubbles.

Kondratieff was a guy who was the economic advisor for Stalin. There's something called the Kondratieff Wave in economics and basically it is that, you know, there are seasons to everything. There is the winter season that we're in now and it seems like it will never end. And then you hear green shoots. You've heard those phrases before, green shoots. That comes from the Kondratieff Wave. The advisor of Stalin. Economy said there would be green shoots and that would show that spring would come. And in spring you would think that we were new and we were refreshed and we were revived, and the economy would start to boom again and people would say, oh, my gosh, I've got another idea. And then summer would set in. And summer would go on for a very long time where it would be just good times and people would begin to think that it would never end. But then autumn, and autumn would set in and you would start to see the season change and you would notice that the leaves are starting to turn and you would think, my gosh, the plants are starting to die and the trees are starting to lose their leaves. If you don't understand the cycle, you would do everything you could to bring those plants into a greenhouse. But those plants will go to sleep anyway, and the more you try to stimulate the growth in those trees, the better chance you have of killing the forest. The leaves all fall down and then you hit winter. And in that winter, that is a season of renewal. When Stalin said to Kondratieff, "Which is the better system, capitalism or communism," Kondratieff said, well, let me look at it. And he came back to him with the Kondratieff Wave and said, you know what, capitalism is because capitalism, they allow things to fail. And when they fail, they go into a season of renewal and then the green shoots start again. Where communism, we can't allow it to fail. We'll continue to prop up the old outdated systems, we'll continue to prop up the bad decisions of others because we can't allow it to fail. So in the end capitalism will win because it will reset itself and it will be a short period of time. It will only last a season. And then there will be three seasons of growth. Stalin thanked him for his analysis and then executed him. We see that Kondratieff was right. We use his language of the green shoots. But yet we don't listen to him. That 1937 feeling that's coming over Paul Krugman doesn't take into account the Kondratieff Wave. And these bubbles have gotten bigger and bigger. We started with the dot com bubble, the pets.com bubble when everybody was like, yeah, I've got to buy that. Pets.com, $300 a share? That makes sense. I don't even know what they sell. I don't know anybody that but it's pets.com. People love pets, people have computers. What a surprise, they failed. And they should have failed. But the government immediately ran in and tried to make the booboo go away. The Fed rushed in and tried to make things better and then we had the September 11th event, and the Fed tried to make the booboo go away and they rushed in. And each time they rush in, they lower interest rates and they make money, spending, debt, more affordable. Then we had the housing bubble, and you see how each one of these is getting bigger. The housing bubble still has remnants of the dot com bubble and 9/11. And we've just compounded it and taken those three now events and made them into one giant event. And now what we're doing, there was a story in the New York Times on Sunday. Do they even read their own paper? There was a story in the New York Times on Sunday that the bailing out of people's personal mortgages, going in and trying to save the homeowner on the front page of the New York Times is actually making things worse! Because instead of losing their homes, they get this blanket, they get this bailout and what they do is they get the bailout, they spend that money and they continue to pay for a house they cannot afford. And so eight months later they are even more destitute and the taxpayer is out of the money. And nothing's been solved. If you want to see green shoots, the kind of green shoots that grow into a tall, strong forest, you must allow winter to happen. These people who believe that we must stop all forest fires haven't worked a day with their hands in the soil. Forest fires, naturally occurring fires replenish the soil and make the forest stronger. And the longer you prevent any kind of fire, controlled burn to actually happen, the more chance you have of the entire forest burning down and that's what we've done. He says we can't stop spending. I believe the American people have told the truth of the situation and how if we don't stop spending soon, a forest fire beyond your wildest imagination will burn the country to the ground and there won't be anything left. If we don't allow the system to reset now, economics like physics laws of nature, you cannot change them. If it doesn't reset now, it will only like a snowball gather more mass and it will slam at the bottom of the hill at some point. It will do more damage. It will be harder to clean up. Congratulations, New York Times and Paul Krugman for being half right. I haven't seen the New York Times being half right in quite some time. That may be an all time record for them.


 

GLENN: Here's what's coming in our economic news according to Paul Krugman. The next employment report could show the economy adding jobs for the first time in two years. The next GDP report is likely to show solid growth in late 2009. There will be a lot of bullish commentary and the calls we're already hearing for an end to stimulus for reversing the steps of the government and the Federal Reserve and the steps that they took to prop up the economy will grow even louder. But if these calls are heeded, it will be repeating the great mistake of 1937 when the Fed and Roosevelt administration decided the Great Depression was over and that it was time for the economy to throw away its crutches. Spending was cut back. Monetary policy was tightened and the economy promptly plunged back into the depths. This shouldn't be happening. Both Bernanke, the Fed chairman and Christina Romer heads President Obama's Council of Economic Advisors are scholars of the Great Depression. They have warned explicitly against reenacting the events of 1937. You will read the economic news. It will be important to remember first of all the blips, occasional good numbers, signify nothing. The economy, the fact of the economy is we're mired in a prolonged slump. Early 2002, for example, initial reports showed the economy growing to a 5.8% annual rate, yada, yada, yada, goes on. All right, listen. Paul Krugman is half right. Paul Krugman is telling you that we're not out of the woods by any stretch of the imagination. We're not. What Paul Krugman, however, forgets is the great mistake of '37 led to the great mistake of '39 where they didn't listen to the well, it's either the chief economic no, I think he was the head of the treasury and FDR's best friend and a huge, huge fan of the new deal. By 139 he saw that the New Deal didn't work and he saw that the rest of the world had already come out of it. Remember the Great Depression as it's called here in America was only the depression in the rest of the world. We made it a Great Depression because we didn't let things fail and we didn't let things reset. The rest of the world let it all reset. So that's why it's the Great Depression in our history books but if you go over to Europe, it is only called the depression. By the end of 1939 the guy who helped design the New Deal said in his testimony in congress, we see now that none of this works. We've tried valiantly, we've done it over and over again but now it's turned into insanity because it doesn't work, we have to reverse course. What Paul Krugman and nobody else will tell you and I will in the next two days on radio and television is it is imperative that we reset the system because it's coming one way or another. If you use any kind of common sense, you'll know that the reason why we've had so many problems and the problems seem to get bigger and bigger is because we're erasing natural bubbles.

Kondratieff was a guy who was the economic advisor for Stalin. There's something called the Kondratieff Wave in economics and basically it is that, you know, there are seasons to everything. There is the winter season that we're in now and it seems like it will never end. And then you hear green shoots. You've heard those phrases before, green shoots. That comes from the Kondratieff Wave. The advisor of Stalin. Economy said there would be green shoots and that would show that spring would come. And in spring you would think that we were new and we were refreshed and we were revived, and the economy would start to boom again and people would say, oh, my gosh, I've got another idea. And then summer would set in. And summer would go on for a very long time where it would be just good times and people would begin to think that it would never end. But then autumn, and autumn would set in and you would start to see the season change and you would notice that the leaves are starting to turn and you would think, my gosh, the plants are starting to die and the trees are starting to lose their leaves. If you don't understand the cycle, you would do everything you could to bring those plants into a greenhouse. But those plants will go to sleep anyway, and the more you try to stimulate the growth in those trees, the better chance you have of killing the forest. The leaves all fall down and then you hit winter. And in that winter, that is a season of renewal. When Stalin said to Kondratieff, "Which is the better system, capitalism or communism," Kondratieff said, well, let me look at it. And he came back to him with the Kondratieff Wave and said, you know what, capitalism is because capitalism, they allow things to fail. And when they fail, they go into a season of renewal and then the green shoots start again. Where communism, we can't allow it to fail. We'll continue to prop up the old outdated systems, we'll continue to prop up the bad decisions of others because we can't allow it to fail. So in the end capitalism will win because it will reset itself and it will be a short period of time. It will only last a season. And then there will be three seasons of growth. Stalin thanked him for his analysis and then executed him. We see that Kondratieff was right. We use his language of the green shoots. But yet we don't listen to him. That 1937 feeling that's coming over Paul Krugman doesn't take into account the Kondratieff Wave. And these bubbles have gotten bigger and bigger. We started with the dot com bubble, the pets.com bubble when everybody was like, yeah, I've got to buy that. Pets.com, $300 a share? That makes sense. I don't even know what they sell. I don't know anybody that but it's pets.com. People love pets, people have computers. What a surprise, they failed. And they should have failed. But the government immediately ran in and tried to make the booboo go away. The Fed rushed in and tried to make things better and then we had the September 11th event, and the Fed tried to make the booboo go away and they rushed in. And each time they rush in, they lower interest rates and they make money, spending, debt, more affordable. Then we had the housing bubble, and you see how each one of these is getting bigger. The housing bubble still has remnants of the dot com bubble and 9/11. And we've just compounded it and taken those three now events and made them into one giant event. And now what we're doing, there was a story in the New York Times on Sunday. Do they even read their own paper? There was a story in the New York Times on Sunday that the bailing out of people's personal mortgages, going in and trying to save the homeowner on the front page of the New York Times is actually making things worse! Because instead of losing their homes, they get this blanket, they get this bailout and what they do is they get the bailout, they spend that money and they continue to pay for a house they cannot afford. And so eight months later they are even more destitute and the taxpayer is out of the money. And nothing's been solved. If you want to see green shoots, the kind of green shoots that grow into a tall, strong forest, you must allow winter to happen. These people who believe that we must stop all forest fires haven't worked a day with their hands in the soil. Forest fires, naturally occurring fires replenish the soil and make the forest stronger. And the longer you prevent any kind of fire, controlled burn to actually happen, the more chance you have of the entire forest burning down and that's what we've done. He says we can't stop spending. I believe the American people have told the truth of the situation and how if we don't stop spending soon, a forest fire beyond your wildest imagination will burn the country to the ground and there won't be anything left. If we don't allow the system to reset now, economics like physics laws of nature, you cannot change them. If it doesn't reset now, it will only like a snowball gather more mass and it will slam at the bottom of the hill at some point. It will do more damage. It will be harder to clean up. Congratulations, New York Times and Paul Krugman for being half right. I haven't seen the New York Times being half right in quite some time. That may be an all time record for them.

Sen. Ted Cruz: NOBODY should be afraid of Trump's Supreme Court justice pick

Stefani Reynolds/Bloomberg via Getty Images

Sen. Ted Cruz (R-Texas) joined Glenn Beck on the radio program Wednesday to weigh in on President Donald Trump's potential Supreme Court nominees and talk about his timely new book, "One Vote Away: How a Single Supreme Court Seat Can Change History."

Sen. Cruz argued that, while Congressional Democrats are outraged over President Trump's chance at a third court appointment, no one on either side should be afraid of a Supreme Court justice being appointed if it's done according to the founding documents. That's why it's crucial that the GOP fills the vacant seat with a true constitutionalist.

Watch the video below to hear the conversation:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

Sen. Mike Lee (R-Utah) joined Glenn Beck on the radio program Wednesday to talk about why he believes President Donald Trump will nominate Judge Amy Coney Barrett to fill the Supreme Court vacancy created by Justice Ruth Bader Ginsburg's death.

Lee, a member of the Senate Judiciary Committee that will consider and vote on the nominee, also weighed in on another Supreme Court contender: Judge Barbara Lagoa. Lee said he would not be comfortable confirming Lagoa without learning more about her history as it pertains to upholding the U.S. Constitution.

Watch the video below to hear the conversation:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

This week on the Glenn Beck Podcast, Glenn spoke with Vox co-founder Matthew Yglesias about his new book, "One Billion Americans: The Case for Thinking Bigger."

Matthew and Glenn agree that, while conservatives and liberals may disagree on a lot, we're not as far apart as some make it seem. If we truly want America to continue doing great things, we must spend less time fighting amongst ourselves.

Watch a clip from the full interview with Matthew Yglesias below:


Find the full podcast on Glenn's YouTube channel or on Blaze Media's podcast network.

Want to listen to more Glenn Beck podcasts?

Subscribe to Glenn Beck's channel on YouTube for FREE access to more of his masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, or subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

'A convenient boogeyman for misinformation artists': Why is the New York Times defending George Soros?

Image source: Simon Dawson/Bloomberg via Getty Images

On the "Glenn Beck Radio Program" Tuesday, Glenn discussed the details of a recent New York Times article that claims left-wing billionaire financier George Soros "has become a convenient boogeyman for misinformation artists who have falsely claimed that he funds spontaneous Black Lives Matter protests as well as antifa, the decentralized and largely online, far-left activist network that opposes President Trump."

The Times article followed last week's bizarre Fox News segment in which former House Speaker Newt Gingrich appeared to be censored for criticizing Soros (read more here). The article also labeled Glenn a "conspiracy theorist" for his tweet supporting Gingrich.

Watch the video clip below for details:


Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.