It's a colorful world that Krugman lives in, peopled by gods, human sacrifices, and vigilantes - something like an Indiana Jones movie. There's Krugman in the hat (former academic doing right for mankind) fighting off snakes and assorted bad guys. The bond vigilantes I have never quite understood. Somehow we're not supposed to care about the views of people who are lending to us (or potentially lending to us). Go figure.
Anyway, here's the opening paragraph:
As I look at what passes for responsible economic policy these days, there’s an analogy that keeps passing through my mind. I know it’s over the top, but here it is anyway: the policy elite — central bankers, finance ministers, politicians who pose as defenders of fiscal virtue — are acting like the priests of some ancient cult, demanding that we engage in human sacrifices to appease the anger of invisible gods.What a lot of nonsense. Our policymakers are irresponsible, elite, callous bastards, because they won't engage in more intervention? Our central bank just engaged in a huge, risky intervention, which they are reluctant to unwind. There is little more that they can, or should, do. Our federal government is running a large deficit and accumulating debt at a rapid rate. There is risk that we may not return to the long-run growth path that we were on prior to 2000 (see this), and thus our capacity for repaying our debts may be compromised. Why shouldn't we be a little cautious?
PK finishes off with this:
So here’s the question I find myself asking: What will it take to break the hold of this cruel cult on the minds of the policy elite? When, if ever, will we get back to the job of rebuilding the economy?As usual, anyone arguing against more "stimulus" is a heartless creep. Apparently "rebuilding the economy" involves only the guiding light of the federal government. Again, go figure.