But I will comment on one of his most deceiving statements in his column. He writes:
So here we are, three years later. How’s it going? Inflation has fluctuated, but, at the end of the day, consumer prices have risen just 4.5 percent, meaning an average annual inflation rate of only 1.5 percent. Who could have predicted that printing so much money would cause so little inflation? Well, I could. And did. And so did others who understood the Keynesian economics Mr. Paul reviles. But Mr. Paul’s supporters continue to claim, somehow, that he has been right about everything.This is apparently Krugman's new preferred method of deception, he also did it two days ago.
He lumps a period of low price inflation with a period of higher price inflation and declares, Viola! There is no inflation. In the paragraph above, he is taking a three year period (which included the Great Recession---the greatest economic calamity since the Great Depression, and a period where you would expect price inflation to decline, since it is a period of slowing money supply AND a period of high demand for cash balances) and he mixes it with a period of higher inflation. And puts out that the three year average annual inflation rate in only 1.5%. Well ,yeah Paul, but what happens if you look at price inflation during the rebound period in the economy, say, the last 12 months? Price inflation isn't anywhere near 1.5 percent.
I quote directly from the Bureau of Labor Statistics CPI release made today:
Over the last 12 months, the [CPI] all items index increased 3.4 percent.That's a 127% greater rate of increase over the last 12 months than Krugman gives the impression of via his sleight of hand.
Worse, if you spend a good chunk of your money on energy, such as gasoline and heating oil, you are really getting smacked. Those prices are up, according to the BLS, by 12.4% over the last 12 months. (Gasoline is up 19.9%). Food, bought for the home, is up 5.9%. Apparel is up 4.8%. In fact, of the top 20 categories and sub-categories identified by the BLS, only 1 shows an increase over the last 12 months of less than 1.5%. Four categories (surrounding energy) are up by double digits.
So if you stay at home and do nothing all day but read Paul Krugman posts on an iPad, maybe your personal inflation rate is zero, but if you eat at home or hop in your car, or keep the heat on in the winter, then unless you are a Krugmanite, you know that Krugman is an evil jokester that shouldn't be taken seriously.