> I don't admit that the poor policies come from lack of intelligence.
That sounds like a straw man to me.
No one (least of all Krugman) is saying that they "have more intelligence" or whatever nonsense you're projecting here; he's just saying that in the normal process of things, leaders should seek-and-take advice from Those Who Know Better. In this case, there were plenty of people who were offering advice, and for a combination of reasons, Obama and his team bet on a different horse. Really, that's all there is to it. He's saying that not only was he right in 20080, but he was right in 1998 about Japan and "we" should have learned some lessons that, clearly, "we" have not.
> They have _some_ sort of material base, and I have seen no real
> efforts to identify that base. Some sort of systematic
> pressure on capitalist action and thought is operating.
I don't think it's any more mysterious than the cult of personality brought to the table by Larry Summers. He was a bossy loudmouth who read the situation incorrectly, and he made a compelling case to Obama who then directed the actions he did. Done, and done.
The thing that annoys me is that it appears there was no "Plan B" -- because if there was, the tactics involved in their (now seen in hindsight as thoroughly the wrong) plan might have been different. For instance, they might have said "We think stimpak is all we'll need, but we stand ready to act if it's not -- that's the plan, so we'll be watching to see if more is needed" ...
Alas,
/jordan