tavis: our conversation with economist paul krugman in a minute. stay with us. the battle over budget cuts continues to paralyze washington while at the same time prompting some serious burble brick throwing from both sides of the ideological divide. president obama conducted a series of meetings designed to unlock the gridlock. our friend paul krugman, good to have you back on the program, professor. >> good to be on. tavis: let me start by asking whether or not you think the dow reached by the president across the aisle -- that the outreach by the present across the aisle will have impact. >> here is a fundamental divide between the parties in terms of visions of the future and it will not be changed because they made a nice small talk over dinner. it is not going to be -- if there is going to be a break it will be when the american people are so outraged by what is happening, some republicans are willing to defect from their collection. until then it is not. this is not something that can be done by having good manners. tavis: i take it the american people ha

paul krugman has the idea that deficits don't matter, not now. we spent some time understanding the thinking behind the theory. krugman is of course the nobel prize winning op-ed columnist for the "new york times." he is also princeton professor. thank you for doing this. so explain, first, specifically why you feel that right now really there is, as far as i can tell, almost no limit to what you would be willing to do in terms of stimulating the economy. >> right now is a time when not spending is extremely disruptive. if the government pulls back, it's destroying jobs and there's no way to offset that. ordinarily if a government spends less the federal reserve can cut interest rates, like we did at the end of the cold war, but we can't do that now because the interest rate fed controls are at zero. so we have no offset and conversely up to, if we increase spending right now it will create jobs and expand the economy. this is a really good time to be spending. won't always be like this. this is not the normal situation. normally we have an econom

paul krugman the principal intellectual proponent of the idea deficits don't matter, at least not now. i thought we'd spend some time understanding the thinking behind the theory. krugman is the nobel prize winning columnist for "new york times." he won it for economics, not the op-eds and also a princeton professor. thanks for doing this, paul. >> hi, there. >> so, explain, you know, first, very succinctly why you feel that right now, really a, there is almost as far as i can tell, almost no limit to what you'd be willing to do in terms of stimulating the economy. >> okay, yeah. right now is a time when not spending is extremely disruptive. the government pulls back, it's destroying jobs and there's no way to off set that. ordinarily if the government spends less than the federal reserve can offset that by cutting interest rates, we did at the end of the cold war when we cut military spending but the fed cut rates and nothing terrible happened. we can't do that now because the interest rates of the fed control are at zero. no offset and conversely up to, if we can increase spending r

jack kemp said you would do it one way, paul krugman said do it another way. that's why i say i'm not so concerned about short-term deficits because the long run projections are so different. >> if you're not concerned about short run deficits -- >> if the economy grows at -- >> why are we fighting about 3%? we're having a debate about how much spending to cut right now. if you're not worried about short-run deficits you're totally out of step with everybody in your party, in fact with most of washington which is totally upset with short-term deficits. >> i think straw man has been set up by many on the the left-- i'm not accusing you of doing this-- but talking about how republicans want european style austerity. there are members that that come on the show that make me want to go into my office and bang my head against the wall because they don't want to deal with democrats. but i think there is a deal to be done. we need to grow the economy now but the big concern for most republicans i talk to is medicare, medicaid, social security to a lesser degree but t

and new york times economist paul krugman. >> it's a remarkable document that came out yesterday. about the budget and what it said it is projecting a deficit of $845 billion this year.

the fact of the matter is -- >> i said paul krugman versus the world. i meant it as a compliment. i did mean it as a compliment. i sat there and thought, wow, he doesn't think we need to address that? >> i didn't say that. >> what did you say? >> we have a problem in 2025, we don't have a problem this year or next year. >> it's being called the ali/frazier of economic debates, scarborough versus krugman. good morning, i'm mark halperin, this is "way too early." thanks for being up with us on this tuesday, march 5th. it's not just tv hype when i say we have a lot of new sy news to tell you about. we have chris christie's magical sound still ahead. and some cabinet nominations by president obama will change the face of his administration. before we get to those headlines, our top story here, vice president joe biden is helping set the tone when it comes to the u.s. position on iran's nuclear program. the vice president in washington told apac yesterday that the window for tehran. >> we have a shared strategic commitment. let me make clear what that commitment is. it is to prevent ir

he said something that liberal nobel paul krugman said for years and they have been saying the oppositeechoed boehner on the debt saying we do not have a debt crisis. this is a very strange turn for republicans who have based all their budget cutting proposals on the idea that we do have a debt crisis. republicans in the age of obama have never wanted to mount a frontal, philosophical attack on social security and medicare because they're the two most popular things the american government provides. so instead of saying we want to cut and or eliminate social security and medicare because like rand we do not believe the government should be in the business of providing health care and or pensions and disability benefits to anyone, ever. instead, republicans have been saying we love medicare and we love social security but we simply can't afford those programs in their current form because of our debt crisis, because of our huge budget deficit, so reluctantly and bravely, we republicans propose significant cuts to medicare and social security, cuts that we republicans believe will make th

there economics editor now paul krugman is a guy who believes that there should be no real supply demand economics there should be no integrity in the banking system there should only be money printing till the cows go mom and using the stock market as a guide a success how come this guy it gets away with such intellectually dishonest editorial should realize nuremberg trials were so micro men perpetrating the financial hole of cost that he is you and i are going to be indifferent saws of this to some extent because crude is talking about the delusions that come not from the sort of. but sound down chicago on the delusional idiots down the ocean to ca go economists to the people he actually thinks are his main enemy and they're the ones who spotting and complain to them doesn't make sense and i want you to weigh in i agree with a lot of what do ya get in terms of policy at the moment when you've got the private sector sucking money out of the economy you don't want the government being a you know a joint vampire in the process of taking cash flow out of the economy so it does make sense

first, has leading economist paul krugman fallen on hard financial times? you look to conservative website, breitbart.com for your daily headlines, this one would be quite the shocker. "krugman files for bankruptcy." the story links to a blog post on boston.com and reads in part, "the bankruptcy filing also sheds some fascinating light on krugman's spending habits which includes an amex bill reaching $84,000 in one month and charges for portuguese wines and a dress from a victorian period." red flags started to go up at the reading an that. they should have. extra digging leads to the story's starting point. the "daily currant," satirical website, also reading headlines like pope benedict leaves office with epic latin twitter rant. paul krugman has not filed for bankruptcy. it proved a purpose, shows how easily the wing nuts fall for this stuff. "on friday i started hearing from friends about a fake story making the rounds about my allegedly filing for personal bankruptcy. i decided not to post anything about it. instead i wanted to wait and see which right

paul krugman, his latest book called "end this depression now." i'm honored. great to have you with us tonight. >> good to be on. >> how serious is this? and is it going to have the impact that has been talked about? >> well, certainly that 700,000 job number is if anything a bit conservative. this is not good for the economy. this is actually not as big a deal for the economy as the fiscal cliff, if we hadn't done something about it would have been. and certainly not as bad as failing to raise the debt limit, which would have been catastrophic, but it's bad, and of course it's degrading government services. i mean this really is not only are cuts very much the wrong thing to be doing right now, but these are especially dumb cuts. so this is not a good thing at all. >> so it could get a lot worse than 00,000 jobs? >> yeah. well, a couple of things. one is -- there is a lot of reason to believe that the numbers we've been using to estimate these things, that austerity hurts even more than the standard estimates say. we've been looking at what has been happening

that of paul krugman, "new york times" columnist.his depression now" lays ought a case for more spending to get the economy going and my pleasure to have him here at the table. >> hi there. >> what do you want to hear in the state of the union on tuesday? >> what i would like to hear i'm not going to hear. i'd like to hear a full-throated endorsement of more stimulus. >> read from your book. >> mostly it's what i hope not to hear. we shouldn't be doing any of this. the whole business with the sequester, all of this is this is not the time for any of this, and the less he says about the deficit, the better. i mean, really gratified by the second inaugural because he said almost nothing about the deficit. finally broke out of that beltway obsession with the deficit, so if he talks about other things, you know, the middle class, inequality, climate and not about, well, we need to balance the budget, that's what i'm mostly hoping for. >> funny that you said beltway obsession. one of the things interesting about reading your column at one

medica medicare, medicaid, ssz. . >> paul krugman, thanks for your time tonight.d in this depression now. >>> ahead, elizabeth warren calls out a big bang for its dirty laundry. >> how many billions of dollars do you have to launder for drug lords before somebody says we're shutting you down. >> and president obama is proud of the violence against women's act. and so are some of the republicans who opposed it. they're actually taking credit for it. that's next. blank bl [ male announcer ] how do you measure happiness? by the armful? by the barrelful? the carful? how about...by the bowlful? campbell's soups give you nutrition, energy, and can help you keep a healthy weight. campbell's. it's amazing what soup can do. are proven to be effective pain relievers. tylenol works by blocking pain signals to your brain. bayer advanced aspirin blocks pain at the site. try the power of bayer advanced aspirin. you ready? [ female announcer ] second kid by their second kid, every mom is an expert and more likely to choose luvs. after thousands of diaper changes, they know what

well, here is liberal economist, paul krugman, agreeing that taking money out, the contractary policy is the wrong thing to support. >> would you support an extra $200 billion in infrastructure and education? >> oh, yeah, i talk about it all the time. >> and he does, i have heard joe sca sca scarbrugh talking about it all the time, when they are in the agreement, standing fast to the puppies are totally ugly, the take money out now in the weak economy position. consider now what our chumba wumba have been dealing with, over the objections of the obama administration. let the payroll tax hike expire, it may be part of why in one of the jobs reports the few bad numbers, the january jobs numbers revised down. also, washington raised taxes on the wealthy, democrats like that. but it is contractionary. the republicans decided to embrace the sequester. we will have to wait until next month's jobs report to see the beginning of the impact of that. it will be very bad this year. nobody is talking about more stimulus the way krugman scarborough are. there are hints that republicans may want to

what will recharge this economy would running into the problems that either paul krugman is worried aboutanother scarborough/krugman debate. i think we should take this on the road. jeff sachs makes a really good point about how things are different now. technology is different and needs are different. and the need for a much more fundamental rethinking and restructuring of our economy, which itself is going to have costs. i mean, there are those cities that chuck was talking about where the manufacturing base is hollowed out. they're now trying to survive on what they call eds and meds, the big educational institutions and hospitals who are often the biggest employers in these cities left after manufacturing has dried up and gone away. and those institutions now holding up the cities are themselves inefficient and need to be reformed because there are cheaper ways of doing it and better ways of doing it. that's going to be more dislocation, but it needs to be tackled. >> the problem is, these manufacturing jobs that have gone overseas, they're going to come back. they're starting to come

on next monday, joe scar borough and paul krugman from the "new york times" will come here and debate the idea how severe the debt issue is to our future. while i have the two of you here. the debt that we have to deal with, and how it affects our gdp. what are your thoughts. >> well it's certainly an issue but it isn't the same as your family's budget. when people say you can't keep spending money you don't have, that's certainly true for a family. it is probably true for most countries. it's way down the road for america. america does have the only reserve currency. and we could, may not be intelligent but we could kick the can down the road for a lot longer. i'm not convinced spending and stimulating is the only way to get it done. i always thought business needs specificity. if they knew what the tax law was going to be or the regulations was going to be they would go and create businesses you would go and buy a new house, he would go and take a vacation. we all stimulate the economy. and the uncertainty is one of the real problems. but it's also true that down the road the defici

. >> paul krugman diagnoses american's biggest economic challenges and builders say demand for homes up and so are costs and buildable land is scarce. why home builders aren't as confident. we have that and more starting right now. >> good evening. tyler, it's amazing how one small country in the mediterranean can create big problems for the rest of the world. >> this is a tiny bite. stock markets around the world wobbles as part of the plan to bailout cyprus. part of the plan will take money from the depositors. cyprus has an economy the size of vermont but the assets eight times more than the country's gdp. therein the financial woes come as no surprise to analysts. listen to what alan greenspan said friday. >> europe has been hanging over the american markets for quite a while. the removal of that risk, i think temporarily, i think it is only temporary, has enabled the underlying forces of the market to begin to come into vision. >> and today, the clearer vision that greenspan referred to was clouded the cyprus, we have the report by cyprus matters. >> reporter: cyprus is a smalle

paul krugman wrote a piece about that. saying that exact same thing. you get that newsbusters? >> ooh he's bankrupt. i knew it! >> stephanie: that was a satire headline. dummies. breitbart. what was i saying? that is. that's it. that is this whole plan. they want to destroy social security and medicare. >> you want to save it by destroying it. >> stephanie: kordell in north carolina. >> caller: hey, guys this is the screenwriter for "the stephanie miller show." i've been so very busy. i had to call in when i found out what they're thinking about doing from social security and medicare. if i get a little emotional i do apologize because you know, with without social security and medicare, i don't know if i would even be here right now. it has saved me for the last decade. >> stephanie: yeah. >> caller: i rely on it to get by, to help pay expenses, to help take care of my health and the fact that they want to make changes. >> stephanie: a lot of people are calling in that are emotional about this and they should be. we can't say it enough. it is repetiti

. >>> joe scarborough discussed america's fiscal challenges with paul krugman and charlie rose, part of their conversation focused on cutting the national debt. >> we will eventually have to deal with health care costs, deal with the costs of the programs we want. but there's no urgency and no urgency means not this year, not next year, not in the next five years or ten years. if we send the message we're willing to do the responsible things, willing to make the tough choices, willing to ask americans to sacrifice in the long run to keep the entitlement program solvent, i think that sends a strong message to the world markets. >>> and that's your morning dish of scrambled politics. >>> we turn now to the weather and bill karins joins us with details on this midwest storm. >> i'd like to fast forward to friday afternoon, when this whole storm is over with and everything begins to warm up across the country. that will be a rough three, four days. it's already starting this morning. heavy snow in and around minneapolis, working through iowa, northern illinois b to arrive in chicago. win

money but they don't see the inflation of all of this but and the most high profile case being paul krugman of the york times but you have done a little bit deeper thinking on this and kind of are able to give us the full picture to explain why a little bit about front running and why this is obscured the inflation debate yes this is the most amazing thing to me to my mind in the history of science that nobody but nobody save yours truly pointed out that the idea of keynes when he proposed that it's just a matter of printing the bonds and selling them would take care of all the momentary problems you see once you introduce a big cool open market operations which is the central bank going to be open market and and by the bombs the government bonds from the banks from ordinary people from c. beings banks from pension funds and who want. this has a side effect which is to move to leave the us and this is my speculation that's the side effect because the mom spoke of the most stupid they know that the central bank is doing that so they are going to prevent this and they want to pocket money. re

democratic national committee, debbie wasserman shultz, congresswoman of florida and george will, paul krugman of princeton and "the new york times" and white house correspondent for bloomberg, julianna goldman. welcome to all of you. let me ask you, senator, what happened there? >> well, it was a very honest, frank, pretty complete discussion of, you know, the problems we face in this nation. president obama opened it up really prioritizing the problems, certainly making the point that it's health care, it's medicare. you know, from my standpoint, the input i provided to him, if we're going to get to an agreement, this is a good first step and have to start meeting with people and developing relationships and spend a fair amount of time figuring out what we agree on first, you know, so many times we're talking about different numbers and first have to agree on the numbers, the facts. one interesting point he made, the problem with medicare, he said, is about a dollar of every -- basically americans paying a dollar, but they get more than $3 out in benefits. he said people don't understand tha

lation rate paul krugman good point is the true inflation rate ben bernanke and once again i gotta tell you if feels great to be a bit coin millionaire you know it's gone up almost fourteen hundred percent in the last year and i'm loving it because there's anonymity there's power you're taking a stance against the paper pushers like jamie diamond over j.p. morgan and this is really this is the currency of the resistance so let's look over and back at the dow jones because that did hit an all time high and i will look at charles beat her man and his daily.

money but they don't see the inflation of all of this but and the most high profile case being paul krugman of the york times but you have done a little bit deeper thinking on this and kind of are able to give us the full picture to explain why all little bit about front running and why this is obscured the inflation debate yes this is the most amazing thing to me to my mind in the history of science that nobody but nobody save yours truly pointed out that the idea of keynes when he proposed that it's just a matter of printing the bonds and selling them would take care of all the momentary problems you see once you introduce a big pool open market operations which is the central bank going to be open market and and by the bombs the government bonds from the banks from ordinary people from see beings banks from pension funds and who want. this has a side effect which is to move leave us and this is mom speculation that's inside the fence because the monster most stupid they know that the central bank is doing that so they are going to prevent this and they want to pocket money. really paul f

only non manipulated currency in the world and that is bitcoin bitcoin is the true inflation rate paul krugman good point.

only non manipulated currency in the world and that is bitcoin bitcoin is the true inflation rate paul krugman bitcoin is the true inflation rate ben bernanke and once again i got to tell you if feels great to be a bit coin millionaire you know it's gone up almost fourteen hundred percent in the last year and i'm loving it because there's anonymity there's power you're taking a stance against a paper pushers like jamie diamond over at j.p. morgan and this is really this is the currency of the resistance. let's look over and back at the dow jones because that did hit an all time high and i will look at charles be your man and his daily video podcast where he talks about this so that brings us to today's reality where the u.s. economy is interest session in recession to find this declining after tax income year over year net of inflation and the u.s. stock market is percentage point from an all time. but u.s. company insiders know what's really going on going on so it's no surprise to me that insiders that u.s. companies have bought the least amount of shares in any one month and also that the r

narrative not been picked up by that i know of you know people like big nobel prize winning economist paul krugman have said this over and over again and yet it still is like everybody. at the republicans are just rewriting history they're trying to make you think that the reason we have a deficit is because of plans like medicare or social security when you and i both know it was the financial industry the housing collapse and that's what caused our economic problems and now we're trying to get people back to work so that we can have the economy going again but they're rewriting that history so what they're trying to blame it on is the very programs that the middle class and those who can least afford it need the most so they can help their benefactors and we're trying to say just the opposite let's get the economy going if we get the economy going all the trajectories that show the growing deficits the growing problems shrink because that's what we need to do if people are back to work they're paying taxes and that's the simplest way to fix the economy but republicans have a different path becau

believe that macroeconomics should be monetary and as opposed to the new classical view which paul krugman example follows on the on the left of the new across the coals and. emphasize on the right wing of neo classical is that you can feel ignored banks didn't money when modeling capitalism and i think that's a bit like saying you can ignore the wings when modeling it's essential part of the system theory agrees with me where we differ but we're going to converge over time is the focus on all laws being a private credit system up you'll banking system with no government and that monetary dynamics their focus and then a loss in the monetary dynamics where the government injects money into the economy through deficit syntax and out through surpluses so that some studies will converge . still working out why there were well that's so let's let's let's boil this down to make it pretty straightforward stuff. the united states do we have a debt crisis you have a private process and a public reaction to that private process but by private you're talking about the yes hell no should help but hous

non-manipulative currency in the world and that is bitcoin bitcoin is the true inflation rate paul krugman bitcoin is the true inflation rate ben bernanke and once again i got to tell you it feels great to be a bit coin millionaire you know it's gone up almost fourteen hundred percent in the last year and i'm loving it because there's an anonymity there's power you're taking a stance against the paper pushers like jamie diamond over j.p. morgan and this is really this is the currency of the resistance so let's look over and back at the dow jones because that did hit an all time high and i will look at charles biederman and his daily video podcast where he talks about this. so that brings us to today's reality where the u.s. economy is in or a session in recession defined as declining after tax income year over year net of inflation and the u.s. .

and new york times economist paul krugman. >> it's a remarkable document that came out yesterday. about the budget and what it said it is projecting a deficit of $845 billion this year. with a fully recovered economy the budget would be down to $420 billion which is a level that is consistent with stable situation. >> it's adjusted. >> it's back to what it was back in 2006, that is what it was during the height of the housing bubble. so we have basically brought the budget under control but nobody noticed. >> eric: sorry pablo, we are exploding in debt and cbo report proves. and $425 billion simply disappear? i guess you need a noble prize to figure it out. i was watching that live. he went from $845 billion to $420 billion and where did it go? >> greg: i thought matrix was an alternate universe. but what is it with nancy pelosi and krugman, this iser crazy eyed. that drug is our money. anybody that can think they can have 850 -- on whatever is the deficit is like telling a junkie well done for doing one less speed ball. it's still an addiction. dirty secret. they are saying defic

i do agree with the assessment of the outcome to expose the alarm is some like paul krugman for what it was. one other conclusion is they show how far off pate mark to market accounting is to violate assets that the banks intend to hold. they told these and particular florida cash flow, not fire sale value in performed far better than revealed. one more thing the stress test demonstrated the banks suffered through swaps and derivatives and other exotics reasonably well and absorbed the losses. what caused the great challenge was traditional bank activity as retail and commercial lending. the people who made of regulatory mistake might not have known better but the record of the book and written as sayings were evolving demonstrates they have no excuse for not knowing better. for political reasons they're locked into a view of the world is connected from reality that was not helped by the helpers' to had the task to the improved. peter wallison book will help us to identify mistakes and lead to solutions. right now the current efforts focus in a dispassionate way in review of the dodd

we talk about debt, only person i can think of who does not buy the fact there is a problem is paul krugman. neil: do you think you get to a point you win a big prize, you go into reverse and become an idiot. >> i'm not going to touch that. let me say there are two issues that are rel van, one is when do we really hit it, the other is how. there are arguments that say we have time before we have to address it and job is should take price/10, i lean in this direction, the other issue is how do we do about it? we have talked about this, you know i'm open to entitlement cuts, but i'm not open to entitlement cups whether we don't look at defense. we have to be fair and balanced. neil: i concur with that, but i don't see that, i see what happened in cyprus, you end up with a government that would have succeeded in confiscating funds from bank accounts, still they are accounts, they will discover to keep up with the spending and all of the debt, this will not cover the bill. now you have to move down the food chain to fit that bill, these people standing in line will be going off the wall, what d