My turn to debunk some Krugman manure

Paul says: that governments could borrow vast sums without driving up interest rates,

OK, let's look at real rates, the real ten year Italian rate, which is nominal rate minus inflation.

The top is inflation, the bottom is the ten year rate.  Only one time did Italy get a break with cheap rates,  just before the crash.  But otherwise, Italy always pays about the same real rate on the ten year bond. I say about because I am not bothering with spreadsheets any more, Krugman is not worth the effort.


So, was it true that Italy could borrow all it wanted, and not raise rates? Yes, just before it crashed. What happened just after the 'just before the crash'. If you said, Italy crashed, then you are a better economist than Paul Krugman.

For all the hand waving BS Krugman does, he has never explained why governments borrow all they want and then crash.  But that seems to be a common theme. And, of course the dim bulbs at UC Berkeley never data check the guy.