Krugman: the Laputan?

Krugman opines thusly:

So new budget projections show a cumulative deficit of $9 trillion over the next decade. According to many commentators, that’s a terrifying number, requiring drastic action — in particular, of course, canceling efforts to boost the economy and calling off health care reform.
The truth is more complicated and less frightening. Right now deficits are actually helping the economy. In fact, deficits here and in other major economies saved the world from a much deeper slump. The longer-term outlook is worrying, but it’s not catastrophic.

I retort:


In the rarified precincts of ivory tower of Nobel Prizedom, (or rather Nobel Prizedumb) the erosion and collapse of the manufacturing base means less than nothing to such high falluting intellects, of course. The fact that the government has encumbered itself with the greatest speculative bubble known as derivative securities to the tune of untold hundreds of trillions, why that is irrelevant saith these Laputan folk. Besides Hamilton's report on manufactures where he establishes that there exists a physically productive economy and attacks Smith's Wealth of Nations by name is so 18th century. "Why we live on our floating island of Laputa on information alone now" they declaim commiserating with my ignorance. But why should I cast these topics before such celebrated professors in the first place? A fools errand I'm sure.