The Emperor Federal Reserve has no clothes - updated

The following was posted on May 31.

This interview with David Stockman was pointed out to YA by emptyset.

The below was added June 6:

Some of Krugman's responses to Stockman:

http://www.pbs.org/newshour/businessdesk/2013/06/why-david-stockman-yearns-for.html

http://www.pbs.org/newshour/businessdesk/2013/06/paul-krugman-on-why-david-stoc.html


0.  Stockman believes that the government is "printing"  too much money and carrying too much debt,

I believe that
1.  the government must incur some debt and print some money,
2.  there must be a limit to how much of that the government can do without ruinous inflation,
3.  Krugman says he would be a deficit hawk at some level of debt,
4.  but he never tells us how much debt and what interest rates would move him to it, and
5.  he never tells us how much debt is reasonable.

So is Stockman playing chicken little or is Krugman burning our candle at both ends?