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Chronicle of the Conspiracy
Join us as we discover, document, expose and challenge the bad people, the bad institutions and the bad ideas that stand in the way of wealth creation -- and show you how to fight back!

Thursday, April 01, 2004

KRUGMAN'S STRANGEST COLUMN EVER    I simply don't understand it. I know it's anti-Bush. I know it's pro-Krugman. But I simply can't follow the logic of who said what, when, to whom, and why. No need to correct this one... just scrap it!

Wait... I get it! It's Krugman's "CNN Truth Squad!"

Posted by Donald L. Luskin at 11:46 PM | link   

IT'S GOOD TO HAVE FRIENDS    Aljazeerah celebrates Paul Krugman and Noam Chomsky in the same sentence.

Posted by Donald L. Luskin at 11:38 PM | link   

IS THIS THE FUTURE...    ...of American political advertising? Jameson Campaigne wants to know.

Posted by Donald L. Luskin at 6:04 PM | link   


Wednesday, March 31, 2004

NOTHING CAN STOP THE SPIRIT OF ENTERPRISE    Even in the desolated earth of the terror-stricken Middle East, grass-roots entrepreneurship flourishes. Thanks to David Duval for this inspiring link.

Posted by Donald L. Luskin at 11:07 AM | link   

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WHO IS KRUGMAN'S PAL, NADIA KOUTZEN?   
...and why did New York Times "public editor" Dan Okrent quote her fawning over Krugman in his March 28 column about the Times' columnist corrections policy -- set next to a quote from me slamming Krugman? Here's Okrent:

Columnists also attract a crowd radically unlike the audience that sticks to the news pages. Judging by my mail, the more partisan of The Times's columnists draw two distinct sets of fanatical loyalists: those who wish to have their own views reinforced, and those who enjoy the hot thrill of a blood-pressure spike. Paul Krugman, writes Nadia Koutzen of Toms River, N.J., "makes more sense (along with Bob Herbert) than anyone. He states irrefutable facts." Paul Krugman, writes Donald Luskin of Palo Alto, Calif., has committed "dozens of substantive factual errors, distortions, misquotations and false quotations - all pronounced in a voice of authoritativeness that most columnists would not presume to permit themselves."

Okrent then goes on to say that "For a wider audience" -- by which, apparently, he means wider than letters written to Dan Okrent -- "Luskin serves as Javert to Krugman's Jean Valjean. From a perch on National Review Online, he regularly assaults Krugman's logic, his politics, his economic theories, his character and his accuracy."

But what of Nadia Koutzen? Who the hell is she? Inquiring minds want to know.

Reader Craig Smith (who the hell is he?) wonders,

Is she herself authoritative, or (as I am guessing) is she...not? And, if not, is that the best Okrent can do as to finding someone to endorse Krugman? Is this not dishonest for the Times "public editor" -- equating a statement from a possibly unqualified, and certainly un-specified (as to qualifications) source with a statement from an authoritative source?

But on reflection, his choice -- rather than elevating her, as I read it at first -- actually is used to disparage you. It looks worse to me every time I re-read it.

My own take (and I haven't talked to Okrent about this -- and I'm sure he wouldn't tell me, anyway) -- is that setting me side-by-side with Nadia Koutzen is very flattering to my anti-Krugman position. After all, Okrent chose to put the pro-Krugman position in the words of an uncredentialed nobody, whose quote is short, general, and lacking in argumentative power (and it damns Krugman with faint praise, by likening him to the absurd Bob Herbert). The anti-Krugman position was put in the words of someone whom Okrent goes on to credential, and the quote is twice as long and suggests researched evidence rather than mere opinion or preference -- and is thus much more persuasive.

That quote, as it turns out, was solicited from me by Okrent for this column. At first he told me it was too long to use, so I was delighted to see the whole thing make it into his column. That said, Okrent also asked me to describe my professional qualifications -- I told him "economics consultant and investment strategist" -- yet that did not make the column. My credential is given only as the fact that I write for National Review Online -- in other words, the audience may presume that I'm a conservative judged to be credible by a conservative publication. It would have been better, from my standpoint, if Okrent had cited my domain expertise that qualifies me to take on Krugman's misstatements about economics.

But back to Nadia Koutzen. It turns out that she is not without expertise, herself  -- although, apparently, not in the domain of economics. It appears that she is a professional violinist, probably the sister (perhaps daughter) of the late Boris Koutzen, the eminent Russian violinist who played for the NBC Symphony Orchestra and taught at Vassar. Toms River, New Jersey, where Koutzen lives, is about 65 miles from Krugman's Princeton.

More to the point, it seems that Nadia Koutzen is an inveterate Times letter-writer. In fact she may hold some kind of record. In March 1997 the Times published a letter from her on how "'ignoring' and accepting is often the best medicine of all" for menopause. In October 1998 it was about how George Steinbrenner "with his wealth" ought to clean up the Bronx. In October 1999, a gripe by Koutzen about how her neighbors dispose of fallen leaves appeared in the Times' "Jersey Diary" in the form of a humorous short poem. Then a hiatus, until March 2002 -- a letter calling for an increase in gasoline taxes. In April 2003, a letter protesting American animosity toward France. Then in November 2003, a letter in response to a Nicholas D. Kristof column, in which Koutzen criticizing Democrats for not "standing up for one's strengths and principles immediately, forthrightly and courageously."

I'd have to conclude that Koutzen must know somebody at the Times. Of all the "atta-boy" letters the Times has published over the years, there seems to be no other explanation for why they would print so many of hers -- none of them is particularly meritorious or exceptional in any way.

In the end, I must say I take a certain delight in assuming that Krugman sees it just this way -- that Okrent chose as his defender an eccentric serial letter-writer, not a seemingly credentialed expert like Brad DeLong. Okrent is a smart and subtle man -- as Krugman must know. This was Okrent's way of sending a signal to Krugman -- not a nice one, either -- and I have no doubt that it was received loud and clear in Princeton.

Posted by Donald L. Luskin at 8:54 AM | link   


Tuesday, March 30, 2004

WHO ELSE SHOULD APOLOGIZE    From investment manager Ashby Foote:
    "If Richard Clarke can apologize on behalf of his government to the families of 9/11 victims, lets find a lower level Federal Reserve weasel who will apologize on the behalf of the Fed for the catastrophic destruction of wealth between 1998 and 2002. That would be some good testimony and more legit than Clarke's hubris.
Bravo! But we're not holding our breath on that one!

Posted by Donald L. Luskin at 1:08 PM | link   

ECONOMIST BRAND LOCK-IN    One of the many depressing properties of the way economics is presented in the media is the way certain pundits become "brands" -- they somehow establish a threshhold level of initial credibility, and thereafter whatever they say, no matter how stupid, is uncritically carried by even such thoughtful venues as the op-ed page of the Wall Street Journal. Consider today's piece by Jeremy Siegel. A cavalcade of unsupported know-it-all opinions-as-facts. High oil and commodity prices? Not inflationary, but rather deflationary: "The rising commodity prices are due to China, which is churning out lower priced goods that keep inflation in check." The ultra-low Fed funds rate? "...looks about right. If the Fed raised short-term rates, it would risk flattening or inverting the yield curve, something very dangerous early in a recovery." As if flattening the yield curve from today's near-record steepness would be something to be feared. All I can say is: it must be nice to be a locked-in brand like Siegel. Once you've got that, you never need to bother to make sense again.

Posted by Donald L. Luskin at 12:11 PM | link   


Monday, March 29, 2004

BASED ON A TRUE STORY...    A teacher in a small Vermont town asks her class how many of them are John Kerry fans. Not really knowing what a John Kerry fan is, but wanting to be liked by the teacher, all the kids raise their hands except one boy. The teacher asks Johnny why he has decided to be different.

Johnny says, "I'm not a John Kerry fan."

The teacher says, "Why aren't you a John Kerry fan?"

Johnny says, "I'm a George Bush fan."

The teacher asks why he's a George Bush fan. The boy says, "Well, my mom's a George Bush fan and my dad's a George Bush fan, so I'm a George Bush fan!"

The teacher is kind of angry, because this is Vermont, so she asks, "What if your mom was a moron and your dad was an idiot, what would that make you?"

Johnny says, "That would make me a John Kerry fan."

Thanks to the Zoogler!

Posted by Donald L. Luskin at 7:43 PM | link   

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THE TIMES' NEW COLUMNIST CORRECTIONS POLICY   
After last week, the New York Times will never be the same. Something happened there -- a small thing, perhaps, but fundamental and potent -- that may forever diminish the privileges and the power of the liberal media elite.

What happened is that the Times has been forced to deal with its fox-guarding-the-henhouse policy of letting its op-ed columnists handle their own corrections of their own errors. That policy of institutionalized unaccountability has led, just as you would expect, to lots of errors and almost no corrections -- and to the illusion of infallibility for the likes of Paul Krugman.

Think how much less influential liberal icons like Krugman and Maureen Dowd will be when their errors must be admitted and corrected. Think how the threat of that will restrain them from making errors in the first place. And, most important, think how much less powerful their rhetoric will be when it can no longer rely of errors which, to be blunt, are frequently not "errors" at all -- but rather deliberate distortions, misquotations, and downright lies.

The Times' policy shift is subtle but significant. In a memo last week, editorial page editor Gail Collins declared,

"...while their opinions are their own, the columnists are obviously required to be factually accurate. If one of them makes an error, he or she is expected to promptly correct it in the column. After some experimentation at different ways of making corrections, we now encourage a uniform approach, with the correction made at the bottom of the piece."

What does this mean, exactly? It means that no longer can columnist corrections come in the form of what Times "public editor" Daniel Okrent calls a "rowback" -- the correct restatement of the error in a subsequent column, without reference to the original error or any admission that there even was an error in the first place. Columnists -- and reporters, for that matter -- love rowbacks because they can comfort themselves that they set the record straight, but without having to admit error.

Here's an example. I pointed out in a Krugman Truth Squad column last November that Krugman's November 4 column had foreshortened the following quotation by Republican representative George Nethercutt -- excising the critical final five words, to make it seem as though Nethercutt were indifferent to the deaths of American soldiers:

"But it's, it's, it's a bigger and better and more important story than losing a couple of soldiers every day, which, which heaven forbid, is awful."

Having been outed in my column, Krugman ran a rowback in his November 11 column:

"Some say that Representative George Nethercutt's remark that progress in Iraq is a more important story than deaths of American soldiers was redeemed by his postscript, 'which, heaven forbid, is awful.' Your call."

Pretty slick, eh? No admission of the shameful distortion in the first column. That's down the memory hole. Instead, the correct restatement of the quotation is used as way to take another slap at Nethercutt, and at Krugman's critics at the same time. All hail Krugman the Infallible!

Under Gail Collins' new policy, however, it will have to read something like this:

"Correction: In my November 4 column, I foreshortened a statement by Representative George Nethercutt, omitting a phrase in which he said of the death of American soldiers in Iraq, 'which, heaven forbid, is awful.' Without that phrase, the misleading impression was given that Mr. Nethercutt is indifferent to the death of American soldiers. I regret any misunderstanding."

Will Collins really make Krugman -- and Dowd and all the rest -- change their self-serving ways? Maybe. In her memo, she writes,

"They are expected to correct every error. Anyone who refused to fulfill this critical obligation would not be a columnist for The New York Times very long."

Strong words. And in his Sunday column, Dan Okrent put Collins in a position in which she's going to have to take the heat if her new policy isn't followed. Okrent wrote,

"...it's [Collins's] assertion of responsibility that matters most. Critics might say her statement of policy is very gently phrased, but when I asked her if there was wiggle room, she was unequivocal: 'It is my obligation to make sure no misstatements of fact on the editorial pages go uncorrected.'"

It must be said, though, that Collins has never been anything more than a dutiful Times apparatchik when it comes to defending the illusion of her columnists' infallibility. On my blog The Conspiracy to Keep You Poor and Stupid, I've twice documented (here and here) what amount to nothing less than blatant cover-ups of Krugman errors.

The trick, now, is to keep the pressure up -- here, at the Krugman Truth Squad, at The National Debate blog, and even at The Nation, where David Corn has urged correction of what he thinks are unadmitted errors by conservative Times columnist William Safire. It was nothing but pressure from people like these -- combined with the arrival of in-house watch-dog Okrent -- that got things moved this far at the calcified and self-satisfied Times.

So, Miss Collins, here's a little bit of pressure for you. Since you say your columnists "are expected to correct every error," when will we see a correction of Paul Krugman's misquotation of Vice-President Dick Cheney in his column last Tuesday?

As Krugman Truth Squad member Carol Vitucci pointed out to me, Krugman quoted Cheney saying that former terrorism czar Richard Clarke was "out of the loop." In fact, Cheney told Rush Limbaugh in a radio interview that Clarke "wasn't in the loop."

A tiny difference -- perhaps no difference at all when it comes to the essential meaning. Still, it's an error. And it's a misquotation of the Vice President of the United States. And an honest correction at the end of some future Krugman column would be just as effective as anything else in punching through his veneer of infallibility.

But, noooo! There's been no correction. In fact, the misquotation was repeated last Thursday in a Times news story by Elizabeth Bumiller. Apparently Timesmen and Timeswomen find it more satisfactory to get their quotes from Paul Krugman, rather than going to original source material -- especially when reading the transcript requires going to such distasteful places as Rush Limbaugh's site or the White House site.

Then on Friday, in a Times house editorial, suddenly the quote was printed correctly. No mention of the two prior misquotations. A rowback! So far Collins hasn't replied to my email to her about it. No surprise. She's in so deep on this one now, silence is her only alternative.

But, I think, in Dan Okrent we have a real ally, and his moral sanction will be more valuable than anything else in keeping pressure on the Times. He was sending a message in his column Sunday when he quoted me, and wrote extensively about the work of the Krugman Truth Squad on National Review Online. He's letting the Times know that he's listening to even its most hated critics -- and that the so-called "newspaper of record" isn't the only arbiter of truth.

When Okrent's 18-month term as "public editor" is over, let's hope that no one has any illusions anymore that the Times is, indeed, the newspaper of record. Stripped of that undeserved imprimatur, its power to unfairly influence public debate will be greatly diminished. The most powerful factor in the liberal media elite will be cut down to size -- at last.

Posted by Donald L. Luskin at 2:21 PM | link   

IS THE CLARKE BUBBLE BURSTING?    After a record round of all the Sunday talks yesterday, here's the lede in a Washington Post story today:
    "For all the sniping over efforts by the Bush and Clinton administrations to thwart terrorism, information from this week's hearings into the Sept. 11, 2001, attacks suggests that the two administrations pursued roughly the same policies before the terrorist strikes occurred.

    "Witness testimony and the findings of the commission investigating the attacks indicate that even the new policy to combat Osama bin Laden and his Taliban hosts, developed just before Sept. 11, was in most respects similar to the old strategy pursued first by Clinton and then by Bush."


Posted by Donald L. Luskin at 12:37 PM | link   

JOKE OF THE DAY   

Posted by Donald L. Luskin at 12:11 PM | link   

SHOULD I BE OFFENDED OR FLATTERED...    ...at the lengths to which Andrew Sullivan goes not to mention me? Some people love to dish it out, but they just can't take it, I guess.

Posted by Donald L. Luskin at 12:07 PM | link   

CUTE...    ...but this Wall Street Journal editorial headline, "John Kerry, Supply Sider?" gives him entirely too much credit.

Posted by Donald L. Luskin at 9:42 AM | link   


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