Dr. Krugman, just a practical question that applies to retired folks like me. If we were to adopt a policy of deliberately higher inflation, say 4%, what can folks with nest eggs do to protect them from that inflation when bond rates are near zero, and stocks are so risky because of things like the Euro crisis??

Incidentally, I no longer own an RV, so that expense is gone, although for me it saved money because I parked it and lived in it full time …

* And unlike annuities offered by the private sector, Social Security benefits are indexed (sort of) for inflation.

Speaking of annuities offered by the private sector, I see that Met Life recently asked its variable annuity holders for permission to get rid of the old MD trust that was responsible for them, and to set up a new trust in DE. I’m always wary when a private corporation makes such a request. I have to wonder if they’re anticipating problems, and trying to set up a shell that they can declare bankrupt more easily, to avoid the obligations. I have no proof of such in this case, but I’m naturally suspicious when it comes to this sort of thing. If anyone has any further info, let us know if this is something we should keep an eye on …

Well, those look smooth and creamy, like they avoided both the watery and the lumpy consistency problems. But they don’t have much color, which means they don’t have a whole lot of butter or cheese mixed in. They may be a bit bland as a result. Good cheese grits are actually yellow orange, and are available routinely (in local cafeterias from time to time) as far west as Santa Fe, NM …

Krugman wants 4 to 5 percent inflation, while holding interest rates near zero by flooding the banks with almost free money from the Fed. The banks will use that money to speculate on oil and other items to help achieve the inflation. The common people, and especially the senior citizens, will get screwed. They can’t afford the risks of stocks. They can’t get any interest on bonds. They’ll have to spend down savings. And the inflation will erode those savings funds. And all that speculation won’t help the economy that much.

If the Fed were making those cheap funds available to common people and not banks, I might see some merit. But not this sorry scam …

I see “progressive” John Garamendi on that list. So much for supporting him for reelection …

That 20% happens to be the number of Americans who actually thought they were in the top 1% in a poll about 7 years ago …

Louis XVI probably had better poll numbers than this in 1789 …

Most of the western world seems to be stuck with governments that act against the interests of the bulk of their people (as in Greece, or the USA), yet they stay in power. This alone should tell us that “democracy” doesn’t exist here. What we have is a “bipartisan” front for an elite who have no intention of letting the people rule, yet keep the charade in place for cover. “Let them eat cake” …

“But I detest 0bama more than any recent President”

This is how it felt to be a Democrat under LBJ in 1967-68 …

Bingo! However, the huge number of House Democrats who opposed these deals may be beginning to be swayed …

“Democrats will drain the vitality of the “Occupy” protests. They will try to convince protesters that what they are really angry at is Republicans and not a system rigged by both parties to serve corporate and special interests.”

From what I heard at Occupy Walnut Creek yesterday, the demonstrators are just about as angry at Democrats as they are at Republicans. Democrats would only be able to co-opt these folks by ceasing to be Democrats as we know them. I don’t expect that to happen in time for Obama. Maybe a thoroughly reformed party and new candidate could make headway. Eugene McCarthy and Robert Kennedy in 1968 come to mind. Of course, that “reform” was aborted …

It’s hard to see what Iran would hope to gain from this now busted plot that would outweigh their risks. Something doesn’t fit here …

“The idea that policymakers are protecting banks from insolvency on the grounds that it’s cheaper to preserve the shitty economy banks are helping to provide, millions of people be damned, stands as a pretty good reason why thousands of people are occupying public spaces all over the country right now, to protest the corrupt partnership of finance and government, at their expense.”

Amen!

For the third time in one of these threads, where is the Just Say Now petition opposing this? I’ll sign. It needs to go to Obama and any other authority who’s trying this kind of suppression …

“The French-German agreement is a hopeful sign the Europeans can agree on how to structure and allocate the Euro bank bailout. But every single member of the Eurozone has to agree for it to work.”

What’s “hopeful” about giving yet more taxpayer funds to the big banks, who will repay the taxpayers of Europe by yet more demands for “austerity”? Sorry, but I don’t see it …

So where’s the Just say Now petition for us all to sign protesting this to Obama? I’ll sign …

Amen to this article …