bad blog post by Krugman where he links to Digby, a biased critic of Obama. Comment section was closed after many smart comments made about the questionable scale used by Poole. Nixon was pretty liberal. Clinton deregulated the financial sector with dismantling Glass-Steagal, while Obama re-regulated with Dodd-Frank and the Consumer Financial Protection Bureau which Obama had Elizabeth Warren set up, even though Geithner didn't like Warren. I see this as Krugman pandering to the ultra-Firebagger left.

Good blog post by Krugman on non-existent Inflation.

Diapers and Deflation

Procter & Gamble Co.’s failure to raise the price of Cascade dishwashing soap shows why investors are buying Treasuries at the lowest yields in history, giving the Federal Reserve more scope to boost the economy.

The world’s largest consumer-products company rolled back prices after an 8 percent increase lost the firm 7 percentage points of market share. Kimberly-Clark Corp. (KMB) started offering coupons on Huggies after resistance to the diapers’ cost. Darden Restaurants Inc. (DRI) raised prices at less than the inflation rate as patrons order more of Olive Garden’s discounted stuffed rigatoni than it anticipated.

This is basic economics; prices tend to fall, or at least slow their rise, when there is vast excess capacity and weak demand. But where’s my hyperinflation?

Conservatives have been crying wolf over inflation for 4 years.