the project at the time was every time paul krugman writes a column, all a few minutes of the krugman truth squad stay up all night, fact checking it, catch every lie, every era, every distortion, every misquotation, every out of context quotation to e-mail me with a. i will have to publish on "national review online" the next day at the krugman truth column. we did about 100 over seven years but it resulted in dozens of major retractions by krugman of errors and lies and misquotation's. but before it did that, it had to result in not once but twice getting "the new york times," for the first time in its more than century long history, to institute an official policy under which its opinion columnists are obliged to correct their errors. they didn't have that policy. [applause] now, let me tell you what's so powerful about that. when they can't lie, liberals have nothing to say. [applause] i've just got the two-minute mark some just going to end by saying that i had a personal experience with paul krugman does not entirely pleasant. in the midst of all this that i've been talking abou

would be over in eighteen months twilight zone economics so paul krugman over there the new york times all the stimulus package the work ready shovel ready. all failed and he's calling an invasion from outer space to rally the economy to overcome what is essentially still bad behavior in their banks. yeah and max you know you read the front page of the financial times and there's no more bonkers than an alien invasion as the possible hope in the paul krugman hopes of an alien invasion are no more daft than people believing that central bankers might save us that they might save our economy move to curb swiss francs rise backfires as you see there. so trader shrugged off new measures by the swiss authorities to stem demand for their currency sending the swiss franc sharply higher the franc jumped by two percent in just a matter of minutes as traders ignored the swiss national banks decision to almost double the amount of liquidity yvel it will to the money market well look at the central bank is a force that resides outside of the economy and it's there to provide theoretically speaking

paul krugman is a nobel prize- winning economist from princeton university. he's also a columnist for the "new york times." ken rogoff is a former chief economist for the international monetary fund. he's a co-author of a book about financial crises called "this time is different." he's a professor of economics at harvard. and terry belton works for jp morgan chase. we thank you all three for being with us. terry belton, i want to start with you since you're closest to the markets. what was behind today's massive sell-off? >> well, judy, the downgrade was a catalyst for it but it's a lot more... it's about a lot more than that. i think what the downgrade is highlighting to investors is that on the fiscal policy side, the u.s. is running out of bullets. what we really need is we need near-term monetary stimulus and longer-term fiscal austerity. i think what the markets, including now, is that near-term stimulus is not coming. we've run out of bullets on the monetary policy side for some time now. we've been at 0 interest rates. it now looks like we're there as

us and placed in is impossible by the central banks the only thing that could stop it is here's paul krugman if we discovered the space aliens were planning to attack and we needed a massive build up to counter the space billion threats and really inflation and budget cuts just took secondary place to that. this slump would be over in eighteen months twilight zone economics so called krugman over there the new york times all of the stimulus package the work ready shovel ready solutions all failed and he's calling on an invasion from outer space to rally the economy to overcome what is essentially still bad behavior in the banks yeah and max you know you read the front page of the financial times there's no more gong than an alien invasion as a possible hope paul krugman hopes of an alien invasion are no more daft than people believing that central bankers might save us that they might save our economy move to curb swiss francs rise backfires as you see there. so traitor shrugged off new measures by the swiss authorities to stem demand for their currency sending the swiss franc sharply higher

you guessed it, i'm talking about paul krugman.ughter] now back to the you can't make up stuff, the analogy between krugman and toohey, i'm going to quote krugman here he says i'm an unabashed defender of the state i regard as the most decent arrangement yet and he advocates a state that offers everyone who's underpaid additional income she and toohey both hate rich people and krugman once wrote in the column rich people must be defenders of the downtrodden otherwise they have no hope of quote on quote justifying their existence. so what to kill them if they disagreed with paul krugman? there's a little bit of a hypocritical thing here i was surprised paul krugman happens to be a wealthy man we know from public record that he has a million-dollar home in st. kitts and a million dollars apartment in new york and a multimillion-dollar estate in new jersey where he teaches and i think it is a 6,000 square foot home with 12-foot ceilings and a music room and according to an article in the new yorker it has a fire pit where he and other

the "new york times" editorial page reads to escape chaos, a terrible deal and paul krugman, the president surrenders. within that piece, krugman writes the damage is not over. le there will be more choke points where republicans can threaten to create crisis unless the president surrenders. and they can now act with confident expectation that he will. now for the political fallout of the deal, national affairs editor for new york magazine, john heilemann joins me by phone. good morning, john. >> good morning, willie geist. >> so is paul krugman write, did president obama surrender to this small faction of the republican party known as the tea party? >> pretty much. i think that's about right. the president, if you think just from the 30,000 foot vantage point, the president talked for months about a balanced approach and from his point of view, a palled approach included revenues. he didn't get any revenues. so almost everything, gave in. the only thing he got that he wanted was a debt ceiling increase that would carry him through the end of next year. and that's something. certainly not

and it's strange because i find myself in some agreement with paul krugman.he right now is growth. the economy isn't growing. we're not generating jobs. if people aren't working, they don't pay taxes, right? we do need to get to a growth program. it's just that paul krugman and i probably couldn't disagree more about what to do about it. >> how you get there. >> if you read my column in friday's "wall street journal," what i talk about is, you know the time might be right for a grand deal to do a tax reform that lowers tax rates, broadens the base, gets rid of all the pollution in the tax system. i think that's something that could generate -- >> i did read it. i read it very early on friday morning. and i thought to myself, i'm not really going to bring up the topic of congress getting a grand deal on tax reform on this show because my viewer will click the remote and say, that knucklehead is a knucklehead. do you think it's possible? >> i really do. if you read the column, you'll see, in 1986, everybody said it couldn't be done. you can't take on the specia

much thank you tom new york times op ed column op ed columnist and nobel prize winning economist paul krugman wrote yesterday republicans will surely be emboldened by the way mr obama keeps folding in the face of their threats and surrendered last december extending all the bush tax cuts he surrendered in the spring when they threaten to shut down the government and he is now surrendered on a grand scale to ixtoc raw. over the debt ceiling now assuming that there was actually a debate between the president and the republicans about all these cuts and we just had two guests pushing back on that but assuming that that's the case paul krugman is right and president obama is about to lower a very tough russ or maybe not but here's the narrative that the president is pushing the narrative that the president has been promoting throughout his presidency basically is that compromise is what makes trans transformational presidents that his hero was abraham lincoln or ronald reagan that they were truly transformational presidents and that bill clinton wasn't and therefore he needed to compromise so is

you guessed it, i'm talking about paul krugman.aughter] now back to the you can't make up stuff, the analogy between krugman and toohey, i'm going to quote krugman here he says i'm an unabashed defender of the state i regard as the most decent arrangement yet and he advocates a state that offers everyone who's underpaid additional income she and toohey both hate rich people and krugman once wrote in the column rich people must be defenders of the downtrodden otherwise they have no hope of quote on quote justifying their existence. so what to kill them if they disagreed with paul krugman? there's a little bit of a hypocritical thing here i was surprised paul krugman happens to be a wealthy man we know from public record that he has a million-dollar home in st. kitts and a million dollars apartment in new york and a multimillion-dollar estate in new jersey where he teaches and i think it is a 6,000 square foot home with 12-foot ceilings and a music room and according to an article in the new yorker it has a fire pit where he and othe

numbers that please his acolyte.u both paul krugman and ellsworth toohey are physically very small withpoleon complex. krugman once wrote i am just nine imposing to be inspiring of iowa's own ai day few inches taller. he was even called gnomeishly and some. [laughter] those bush tax cuts are a step for only the little people pay taxes. you be the judge. and he is also low crazy and roe to my economic theories have no doubt been influenced by my relationship with my cats. this explains a lot. [laughter] didn't he win the nobel prize and respected economist? yes, sir. arafat and jimmy carter and a barack obama one the nobel prize. you just have to be a you liberal or a terrorist. [applause] the real test is it you can make a correct prediction for 1982 when krugman was part of the council of economic advisers in the reagan white house. he wrote the paper when we had just come off the peak of the u.s. inflation. it is called the annexation time bomb predicting inflation would skyrocket and through the rope back into a depression.nkpr wrote therhe paper inflation has been the were. practica

people like paul krugman have been trying to get us to realize how well has been so concentrated in such a small group of folks. what strategies could be used to attack this minority of individuals in a way that foundations and charities did in the past? if we had a few people, and quite a number of them at an immense amount of wealth, why are we not having them at the new macarthur foundation's and the people who will finance this community journalism? there should be a way of strategy and a mindset where they can help reduce the public interest journalism of the future -- help produce the public interest journalism of the future. >> you are seeing that from some of the wealthy. you have bill gates doing fantastic things. msn and msnbc sprang from microsoft. rupert murdoch, for all the criticism he gets, is invested in the media and innovation. mike bloomberg is doing a ton of stuff through his company. they are hiring hundreds of people. i worked at bloomberg 15 years ago, and i was in europe as a foreign correspondent. there were 40 journalists, and now, there are thousands. i think i

this is a paul krugman presidency. he believes that stuff. he actually believes in left wing economic ideas. the only problem with him is they don't work. sort of somebody -- >> bill: krugman is a smart guy but he doesn't care, i believe, and i really believe this, i don't think krugman cares about improving the economy. i think he wants to do a socialistic number. obama to care if he wants to keep his job. >> oh, look, i think he cares. all the ideas he has and all the advisors he has is wrong. when you go out and to small businesses they will tell you the inenvironmental protection agency is killing them. osha is killing them. where boeing is trying to create jobs. the national reels board is killing them. you talk to every small bank in america they are getting killed by the dodd frank bill. dodd frank is to financial services. >> bill: explain that to people who might not be familiar with it. dodd frank says what? >> dodd frank is a 2700 page bill that is going to impose on every small bank in america so much red tape and so much regulatio

connie, paul krugman hates this deal.nal editorial page says this is a great deal, take it. have you checked the rules to see if you can vote for this thing two or three times? >> well, joe, first of all, thank you all for having me on the show. let me say this, i don't think the american people are looking for a deal or a compromise. they are looking for a solution to the problem. the problem we have is we have a deficit of $1.5 trillion and debt over $14 trillion. with this plan, we ensure we are going to have over $17 trillion in debt without solving the problem, which is spending. >> are you going to vote against the deal? >> i'm going to vote against it. i think speaker boehner did a greet job of pushing the debate, bringing it back to the principles we believe in. at the end of the day, i can't vote for something that ensures over $17 trillion of debt without a real solution to cutting spending in washington. >> there was a deal on the table, the outline where the president was willing to give up $3 trillion in cuts

paul krugman, "new york times" echoed what i've been saying here on "hardball."e point is that it's now time, long past time, to get serious about the real crisis it's economy faces. the fed needs to stop making excuses while the president needs to cup up with real job proposals and if republicans block those proposals, he needs to make a harry truman-style campaign against the do-nothing gop. this might or might not work. but we already know what's not working, the economic policy of the past two years has been working, and the millions of americans who should have jobs, but don't. my fear about the president getting on that bus, gus, he's going to be riding around the midwest for what purpose? he's not pawlenty. he's not some politician running for the presidency. he's got the job. >> well, i think we have to go to where the roads and bridges are. you don't have to drive to richmond. you could go right outside washington, d.c. or in washington, d.c. and find the roads that in are disrepair. we actually had a water main break, held up had traffic up and down the

paul krugman slamming mr. obama under a headline reading "the president surrenders."ou can decide what happens. more than $2 trillion in savings over the next decade including $21 billion next year, a little more than $900 billion agreed on for the next ten years and a bipartisan commission made up of six house and senate members would be charged with laying out by this thanksgiving, at least another $1.2 trillion in spending cuts and or revenue increases to complete the deal and stay away from social security and medicaid. if the panel can't agree, across the board cuts would kick in. the bill would call for a vote on but not passage of a balanced budget amendment to the constitution. gloria borger talked about that last week. in exchange for all that the debt ceiling will be raised through the end of next year. democratic and republican supporters each trying to claim credit for getting a handle on the deficit. >> we need to return the fiscal responsibility. how is it that weir going to be able to do that? getting our fiscal house in order. >> the american people ha