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In all fairness, shouldn't Krugman be a "paperbug"?

• Locke1689 14y ago
  Not when that describes the vast majority of professional economists.
• podperson 14y ago
  It's not "goldbug" vs "paperbug" so much as "the value of ANY currency is an illusion" versus "the value of gold is real, but that of paper is an illusion". (My favorite example of this is the post apocalyptic scenario -- I fill my bunker with guns and food, you fill yours with krugerands: who wins?) This is the problem with the bitcoin crowd -- they're trying to replace "gold" with something "even better" not realizing that this is a blind alley.
• mynameishere 14y ago
  I don't think there are too many "paperbugs". Nobody considers his checking account to be an investment or a speculation. Krugman probably has the typical portfolio of a rich guy--Munis, equities, sovereigns, etc. Anyway, fiat is not just social: It's inherently valuable because of the government's requirement for tax payment in it, and for the massive existing short positions. People like Krugman don't say this because it's unpleasant.
• illuminate 14y ago
  "In all fairness, shouldn't Krugman be a "paperbug"?" They lack the fanatical/evangelistic zeal, I don't see them as equivalents.