Krugman Accused of Spreading Disinformation
Steven Hanke, an applied economics professor at Johns Hopkins University, has criticized Paul Krugman, a fellow economist and Nobel laureate, for his claim that inflation is a "global phenomenon." Hanke took to X (formerly Twitter) to express his disagreement with Krugman's latest op-ed article in the New York Times, referring to it as another one of the Nobel laureate's disinformation pieces.
Krugman's Argument for Bidenomics
In his December 7 article, Krugman presents the case for Bidenomics, which refers to the economic policies of President Joe Biden. While he acknowledges that persuading conservatives might be a challenge, Krugman believes that progressive U.S. citizens can still be convinced that the Biden administration has performed well in terms of the economy.
To support his claim, Krugman points to the rise in the labor productivity rate in the third quarter and highlights that the gap in unfilled job openings has significantly decreased.
Hanke Dismisses Krugman's Claims
Contrary to Krugman's assertions, Hanke argues that it is incorrect to state that the U.S. has successfully controlled inflation. According to Hanke, inflation is always a local phenomenon and not a global one. He cites the examples of Switzerland, which has a well-managed economy and an inflation rate of 1.4% per year, and China, the world's largest economy (based on a PPP basis), where inflation is at 0.2% per year.
This is not the first time that Hanke has disagreed with Krugman. In October, when Krugman declared victory in the United States' fight against inflation, Hanke expressed his skepticism. Interestingly, when Hanke proclaimed that the issue of inflation was resolved in July, Krugman and economist Mohamed El-Erian were reportedly uncertain.
What are your thoughts on this story? Share your opinions in the comments section below.
Frequently Asked Questions
Can I have physical gold in my IRA
Gold is money and not just paper currency. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Today, Americans prefer precious metals like silver and gold to stocks and bonds. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
Gold has historically performed better during financial panics than other assets. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. During those turbulent market conditions, gold was among the few assets that outperformed stocks.
The best thing about gold investing is the fact that there's virtually no counterparty risk. Your shares will still be yours even if your stock portfolio drops. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Finally, gold is liquid. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. The liquidity of gold makes it a good investment. This allows for you to benefit from the short-term fluctuations of the gold market.
What precious metal is best for investing?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has been considered a safe investment, it is not always the most lucrative. Gold may not be right for you if you want quick profits. You should invest in silver if you have the patience and time.
If you don’t desire to become rich quickly, gold may be your best option. If you want to invest in long-term, steady returns, silver is a better choice.
How much tax is gold subject to in an IRA
The fair market price of gold when it is sold determines the tax due on its sale. You don't pay taxes when you buy gold. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
As collateral for loans, gold is possible. Lenders look for the highest return when you borrow against assets. This often means selling gold. There's no guarantee that the lender will do this. They may just keep it. Or they might decide to resell it themselves. You lose potential profits in either case.
You should not lend against your gold if it is intended to be used as collateral. It is better to leave it alone.
What does gold do as an investment?
The price of gold fluctuates based on supply and demand. It is also affected by interest rates.
Due to limited supplies, gold prices are subject to volatility. There is also a risk in owning gold, as you must store it somewhere.
What amount should I invest in my Roth IRA?
Roth IRAs can be used to save taxes on your retirement funds. The account cannot be withdrawn from until you are 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, you can't touch your principal (the initial amount that was deposited). This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.
The second rule is that you cannot withdraw your earnings without paying income taxes. So, when you withdraw, you'll pay taxes on those earnings. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. The federal income tax on your earnings would amount to $3,500. You would have $6,500 less. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. In addition, 50% of your earnings will be subject to tax again (half of 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
There are two types if Roth IRAs, Roth and Traditional. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. Your traditional IRA allows you to withdraw your entire contribution plus any interest. There are no restrictions on the amount you can withdraw from a Traditional IRA.
A Roth IRA doesn't allow you to deduct your contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
Can I purchase gold with my self directed IRA?
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts are financial instruments that are based on gold's price. These contracts allow you to speculate on future gold prices without actually owning it. But physical bullion refers to real gold and silver bars you can carry in your hand.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
finance.yahoo.com
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
forbes.com
How To
A rising trend in gold IRAs
Investors seek diversification and protection against inflation by using gold IRAs.
Gold IRA owners can now invest in physical gold bullion or bars. It can be used as a tax-free way to grow and it is an alternative investment option for people who are not comfortable with stocks or bonds.
A gold IRA allows investors the freedom to manage their wealth without worrying about volatility in the markets. Investors can use the gold IRA for protection against inflation and potential problems.
Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.
Additionally, the gold IRA has many benefits. It allows you to quickly transfer your gold ownership to your heirs. The IRS doesn't consider gold a commodity or currency.
Investors looking for financial security are increasingly turning to the gold IRA.
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By: Terence Zimwara
Title: Johns Hopkins Professor Criticizes Paul Krugman's Claim on Inflation
Sourced From: news.bitcoin.com/economist-steve-hanke-blasts-nobel-laureate-paul-krugmans-global-phenomenon-inflation-remark/
Published Date: Mon, 11 Dec 2023 21:00:55 +0000
