I am glad you posted this. But keeping up with Krugman can be a full-time job. Whew! The equivocation of Krugman on flexible wages and prices has been with the Keynesians for decades. Keynes emphasized the argument that flexible prices will do no good. I have always thought that the argument is weird and indeterminate on its own grounds. Must we wait for the *point* of full employment to have a price system. Price flexibility at ANY other time, by Keynes's logic, would lead to cumulative decline. So, until full-employment, no resource allocation??? No transmission of knowledge???

CBS national news reported tonight that terrorists had been killed. Notice they did not say that the US or Pakistani government SAID that terrorists had been killed. Now if CBS is going to say this they ought to have their own independent means of verifying the statement. I am willing to bet that they do not. They accept what they are told by these governments. Now what kind of check on the state is that?

Excellent. But the whole story is frustrating. Even if the media were to report on this I can't see Americans paying attention. That is why good old-fashion isolationism was good. Nobody had to be an expert or be informed. The government just had to stay home.