Yes, welcome to the American version of the Weimar Republic… Oh wait… Never mind.

“Procter & Gamble Co.’s failure to raise the price of Cascade dishwashing soap shows why investors [...]]]> Crank up the printing presses at the Treasury!  Time to print those $1 Billion bills so we can buy bread!

Yes, welcome to the American version of the Weimar Republic… Oh wait… Never mind.

“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?

Where indeed…  Keep scanning the horizon, Dr. Krugman, it’s bound to show up any day now!

Listen for the bit around 7:30 where McWilliams talks about working in [...]]]> Great review of the crisis in Europe by Irish economist David McWilliams!  McWilliams has worked as an economist with the Central Bank of Ireland and as a banker with UBS bank and the Banque Nationale de Paris.  He currently does documentary television.

Listen for the bit around 7:30 where McWilliams talks about working in Boston in the 1980s when the Boston & Massachusetts economy took a nose-dive and how the Federal Government stepped in to help with various transfers.  Then remember that we have a governor who is to feckin’ stupid to know how economics works and turned down millions and millions of dollars in transfer payments from the Feds.  When you elect a moron, you get moronic policies.