JustOneMinute: Krugman – Nobodys Understands Debt (But Now I Do!)

2011: (Obama)

Perhaps most obviously, the economic “experts” on whom much of Congress relies have been repeatedly, utterly wrong about the short-run effects of budget deficits. People who get their economic analysis from the likes of the Heritage Foundation have been waiting ever since President Obama took office for budget deficits to send interest rates soaring. Any day now!

And while they’ve been waiting, those rates have dropped to historical lows. You might think that this would make politicians question their choice of experts — that is, you might think that if you didn’t know anything about our postmodern, fact-free politics.

And…

2003: (Bush)

With war looming, it’s time to be prepared. So last week I switched to a fixed-rate mortgage. It means higher monthly payments, but I’m terrified about what will happen to interest rates once financial markets wake up to the implications of skyrocketing budget deficits.
…
And as that temptation becomes obvious, interest rates will soar. It won’t happen right away. With the economy stalling and the stock market plunging, short-term rates are probably headed down, not up, in the next few months, and mortgage rates may not have hit bottom yet. But unless we slide into Japanese-style deflation, there are much higher interest rates in our future.

Get it? With Krugman, Presidents matter. They have magical powers. President Obama, by his mere occupancy of the White House, can automagically change deficit spending from a horrible policy that will destroy the nation with soaring interest rates into a benefit that will be our golden salvation by lowering interest rates.

And, not incidentally, make Paul Krugman look like a total ass in the process.