To say what should be obvious: Republicans don’t care about the deficit. They care about exploiting the deficit to pursue their goal of dismantling the social insurance system. They want a fiscal crisis; they need it; they’re enjoying it.
The comment by Krugman about Republicans wanting a fiscal crisis to dismantle the welfare system is somewhat hyperbolic. However there are plenty Republicans who claim to care about the deficit but when push comes to shove go for tax cuts instead and then point at the lack of revenues to justify cuts in the welfare system.
See here: https://en.wikipedia.org/wiki/United_States_public_debt#Meas... and refer to the first paragraph of the article of a definition of the two debt types.
You are out of your mind. Absolutely, 100 percent out of your mind.
Krugman dwells into conspiracy theory when he argues that republicans "enjoy" the deficit and with a nice slight of hand assigns the full responsibility for it to them. From random partisan hacks, sure, that how it goes, but for someone that likes to remind everyone that he has a nobel price, perhaps, just perhaps, we can expect a higher standard?
1. The US and the Eurozone are suffering from very different problems. The debt in the US is likely to stabilize at around 80% GDP (source: http://krugman.blogs.nytimes.com/2013/01/24/tim-geithner-is-...). European countries are in quite a bit of trouble, but it will most likely take the the form of a slow and painful recovery. Greece has already partially defaulted on its debt (and the world didn't end).
2. There is no reason to assume that many (American?) banks will collapse anytime soon. The realistic worst-case scenario is another multi-trillion dollar bailout at the expense of the taxpayer.
3. The trillion dollar coin idea was a legal gimmick to counter another legal gimmick (debt ceiling). Minting a trillion dollar coin is not substantially different from conventional methods of "printing money" (there are some differences: e.g. no interest is paid on currency). The trillion dollar coin wouldn't be used to pay off the public debt. Minting coins to pay off the public debt is a bad idea, and not a single economist seriously suggested doing that. To reiterate: the trillion dollar coin is a legal trick and has almost no impact on the actual economy.
4. The cost of printing money isn't zero in all situations. Which is why printing money can partially fix some financial problems, but not all of them. Printing money is a good idea for instance when there is a shortage of money in the economy (i.e. risk of deflation). Printing money is never a substitute for real economic activity.
5. Inflation certainly works like a tax. Those with money are hurt by inflation and those with net debt benefit from it. It also encourages investment, which is why most economists think a little inflation is a good thing.
6. US Government bonds are in very high demand. Hence the low interest rate on them.
7. Your crazy rants about how the US is a socialist state don't have any bearing on reality.