Obama Gives Away the Store Again

The President says he’ll drill, baby, drill. Dave Roberts tweets:

Under Dems, we’ve established that off[s]hore drilling is OK. Nuke subsidies are OK. Coal subsidies are OK. As yet, gotten NOTHING in exchange.

I suppose after the health care victory we have to give Obama the benefit of the doubt that he can still get climate legislation through congress. But from the cheap seats out here in Seattle, it sure looks like he gave the GOP everything they wanted on energy, with out them giving him a single thing in return.

The Heirs to McVeigh

Second Amendment advocates are planning a March on Washington on the 15th anniversary of Oklahoma City bombing and the anniversary of the Branch Davidian siege in Waco, Texas.

They say that the reason they picked April 19th had nothing to do with Oklahoma City, but rather the anniversary of the Battles of Lexington and Concord.

Well, fine, except that Timothy McVeigh picked April 19 for the OK City bombing specifically because it was the anniversary of the Battles of Lexington and Concord.

Krugman on Inflation and China

Podcast listeners know we’ve been harping on inflation lately, arguing that given America’s current budget deficit and liquidity trap, significant inflation is the most inevitable path out of this recession. Paul Krugman, in a column on China’s currency manipulation, agrees:

It’s true that if China dumped its U.S. assets the value of the dollar would fall against other major currencies, such as the euro. But that would be a good thing for the United States, since it would make our goods more competitive and reduce our trade deficit. On the other hand, it would be a bad thing for China, which would suffer large losses on its dollar holdings. In short, right now America has China over a barrel, not the other way around.

Couple this with the news that the International Monetary Fund is talking about increasing inflation targets from 2% to 4%, and you can see an elite consensus emerging around the idea of higher inflation.

None of this is to argue that inflation is a “good” thing. Runaway inflation can certainly be bad for an economy. Just ask Zimbabwe or 1930s Germany. On the other hand, moderate inflation is good for debtors, such as, say, the US Government or the 1 in 4 homeowners who are underwater on their mortgages.