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Paul Krugman Gets Rude Awakening by Austrian Professor of Economics, Pedro Schwartz


<p style="text-align: justify;">Tyler Durden submitted <a href="; target="_blank">this much longer presentation</a> (which I shortened) over at <a href="; target="_blank">Zero Hedge</a>, and points out the emotional clash between the two economists that is sure to be watched by the many free-marketers out there. (Posted by <a href="; target="_blank">Religio-Political Talk</a>) Tyler entitled this posting, "The Ultimate Krugman Take-Down," …he continues:<br /><br /></p><ul><li style="text-align: justify;">Forget Ali - Frazier; ignore Santelli - Liesman; dismiss Yankees - Red Sox; never mind Silva - Sonnen; the new undisputed standard by which all showdowns will be judged happened in Spain over the weekend. During a debate on Europe's crisis, Pedro Schwartz (a mild-mannered Spanish 'Austrian' economics professor) took on the heavyweight Paul 'I coulda been a Fed Chair contender' Krugman, and - in our humble opinion - wiped the floor with his Keynesian philosophy. From the medicinal use of more debt to fix too much debt, to the Japanization of world economies and the demand-side bias of every- and any-thing - interested only in the short-term economic growth; the gentlemanly Spaniard notes, with regard to the European crisis, the fact that <em><strong>"Keynesians got us into this mess and now we have to sacrifice our principals so that they can get us out of this mess".</strong></em> Humble and generous in his praise - though definitively serious with his criticism - Schwartz opines: <em><strong>"Often Nobel prize winners are tempted to pontificate on matters that are outside the specialty in which they have excelled," noting "the mantle of authority whereby what ever they say - whether sensible or not - is accepted with resignation from some and enthusiasm by others."</strong></em> Krugman's red-faced anger is evident at the conclusion as he even refused to shake Schwartz's hand after the debate.</li></ul><p style="text-align: justify;">&nbsp;</p>