Krugman Acknowledges Mish

Krugman actually acknowledges Mish Shedlock today in his column:

So what’s behind the price spike? American right-wingers (and the Chinese) blame easy-money policies at the Federal Reserve, with at least one commentator declaring that there is “blood on Bernanke’s hands.”

To my knowledge, this is the first time the Nobel Laureate has even mentioned Mish.  Perhaps if he actually read what Mr. Shedlock had to say, maybe then he would learn something besides how pushing up aggregate demand solves all the world's economic problems.  Yes, bad weather may be responsible for food shortages but Krugman still doesn't explain why the Dow Jones is so high.  As for global warming, I have already written about how it should be solved; that is if it truly exists.  And my solution sure as hell doesn't involve carbon taxes.

In other news, Sen. Rand Paul has a great editorial in The Wall Street Journal today showing just how easy it is to cut $500 billion from the federal budget.  Too bad the chances of the Tea Party and other Republicans backing his proposal are the same as Hugo Chavez reading "The Road to Serfdom" and actually believing it.

Update- Forgot to mention this before, but possibly another sign of the Bernanke money flowing:

Ford Motor Co. says it will increase U.S. factory production by 13 percent in the first quarter due to higher sales.

Are cars capital goods?  They are made from raw materials, but they also serve as important assets to many businesses.  So in that sense, I think they can be considered capital goods, meaning the early stages of the Stages of Production model are being affected by a Fed induced recovery.  And doesn't the federal and many state governments buy Ford as well as other American cars?  The bang for Bernanke's $600 billions bucks looks to be in full swing.