According to Peter Schiff Paul Krugman is repeating the false premise that spending during the World Wars is what got us out of the depression. He also thinks that we need more inflation. So Krugman has decided that more spending is what is needed to get us out of this depression. And Krugman has come up with a solution.
If space aliens were to attack and we could spend a lot of money with deficit spending to prepare for the invasion. We need a new bubble. This time the bubble will be defense spending. After the tech and real estate bubbles, everyone will invest massive resources on alien defense precautions.
This is the best that according to Peter Schiff Paul Krugman can come up with. It is off the charts lunacy. But it makes sense if you are a Keynesian.
Krugman was a fan of the Issac Asimov Foundation series. Like the protagonists in those books, Peter Schiff Paul Krugman wants to save the world. That is why he became an economist. He thinks that right now economics will be the salvation of the world. In 1929, we collapsed, but now we have Paul Krugman to help save the world. All by creating a fake alien invasion.