Krugman's solution (as well as the Socialists on this board), is to let the fiscal cliff happen. Why? The answer is easy. The only way to pay for Obama's unprecedented increase in government spending is to drastically raise the taxes on the middle class. The Socialists all rejoice!
If the "Bush Tax Cuts" expire for EVERYBODY (fiscal cliff), then (theoretically) within 10 years the federal budget will be almost balanced (-1.2%).
Aaaaah there it is folks, the truth comes out. The Socialists can't have their cake and eat it too. If you don't raise taxes on the middle class, you will NEVER get close to raising 24% of GDP in revenue (which is what Obama and the Democrats have been spending since 2008).
In all reality, the only way to keep the charade going is if Obama continues $1T deficits. From this election, we have seen, that the government dependent section of the U.S. population is more than willing to let that happen.
They don't care about inflation. As long as they can afford to put gas in their cars, it doesn't matter. They never aspired to acquire real assets (whose value is skyrocketing), all they care about are material things. When you have foodstamps, a free phone, section 8, tanf, a low-wage part-time job, and a health insurance tax rebate...what else do you need?