I really enjoy your thoughtful comments. It would be great if others would join in. Perhaps they will in time.

I think you are right. We are fighting an ideology. More, we are fighting 'ideological capture'. Everyone, it seems, has been captured by the same way of seeing and understanding what is going on. And that is a very dangerous situation.

What we need is a debate between people who see and understand what is going on from very DIFFERENT perspectives. Otherwise we are all trapped inside a single view.

Krugman, is an odd one, I agree. But as you note he thinks disaster lies in the collapse in value of 'assets' denominated in Euros. He does not seem to think that devaluing the euro, by using it to prop up valueless assets (by buying them) or insolvent banks by giving them euros in exchange for debts that will never be repaid – he does not see that these are the actions that will destroy the euro. Why he does not see this I don't know.

I do think he believes bailing out the banks is some kind of Keynesian government stepping in to stimulate and invest when the markets themselves fail to do so. The problem I see with this is that government are NOT actually doing any actual Keynesian stimulating. For the simple reason that they keep putting their stimulus into the banks where it disappears. The bail out has not stimulated because it has never etered the real economy. It is in the banks or back at the central banks on deposit from the banks it was lent to.

I think Krugman is wrong. Which is the height of arrogance I know. Blogger tells Nobel Prize winner he's wrong! I'm sure he would laugh – good naturedly I hope.

Shame on journalists for not exposing it for what it is. Bigger shame even for political leaders not to throw the real meaning of such statements back in the investment strategists' faces and not accepting the premise of such 'leadership' being called for.

Lack of understanding of basic economics may account for that. But what the heck does one make of of similar statements from Economy Nobel Price winner Paul Krugmann, who in his op-ed comments in New York Times 6th of May states: "So is the euro itself in danger? In a word, yes. If European leaders don’t start acting much more forcefully, providing Greece with enough help to avoid the worst, a chain reaction that starts with a Greek default and ends up wreaking much wider havoc looks all too possible".

Seems we have an element of ideology, in the marxist sense, to fight too.

I sometimes write Mr. Krugman, the last time re his views on regulation of financial markets, to ask him to return to the subject of US foreign policy, where his views are sound, but no, he's adamant with economy and finance comments. That Nobel Prize must really have have been a boost to his confidence.

Makes me wonder: Who was the comittee behind the prize? Did they sense that lending Nobel prestige to a Keynesian ideologue would be wise for business as things were beginning to fall apart?

May be hard for politicians and ECB alike to stand firm confronted with 'investmens strategists' and "objective science" calling for the same type of 'leadership'.