This from today's Wall Street Journal:

Globalization has had a "gradual and limited" effect on U.S. inflation in recent years, Federal Reserve Governor Donald Kohn said Friday, cautioning that any disinflationary effect could reverse over time.

"The effects of globalization on domestic inflation need not even be negative, especially in today's environment of strong global growth," Kohn said in remarks prepared for delivery to a conference sponsored by the Boston Fed.

Mr. Kohn's remarks seem to rebut the long-held view of many economists that increased integration of the global economy, and particularly the emergence of countries like China and India as low-cost producers, acts as a restraining force on U.S. inflation.

Import prices, Mr. Kohn noted, have in recent years risen at about the same average pace as core prices, "and thus no longer appear to be acting as a significant restraint on inflation in the United States." He added, "I have seen little direct evidence on the extent to which globalization may have boosted aggregate productivity growth in the United States in recent years."

Well, which is it.  If Mr. Kohn is right, then the U.S. will see pernicious inflation, a decline in the dollar and  therefore a decline in asset values.   This is what the Financial Times' Daniel Gros was ultimately worried about in his piece on U.S. debt and deficits when he noted that reports underestimate our enormous indebtedness.

U.S. dollar inflation ultimately will reduce the value of what we owe our foreign creditors (the dollars they reap will be worth less in purchasing power) and this will press the issue of whether or not the dollar should remain the reserve currency (universal denomination of transaction) or the Euro takes over.

Do you remember when the Vice President told us that deficits don't matter?  When will some bright-eyed report put that question to him again and again?  I really want to hear his answer.

Does anyone recall how David Rosenblum died last January in Washington D.C.?  What follows is a harrowing report on how the late New York Times reporter, who was walking near his home in our nation's capitol, failed to receive adequate medical care in "the best of all medical care systems on the planet".

The first responders failed and that failure was compounded by failure in hospital -- leading to avoidable death.

The Wall Street Journal this morning includes this story:

 "Purdue Pharma L.P. has settled a civil case brought by its insurer over spiraling legal costs incurred by the drug company in defending nearly 1,400 lawsuits over OxyContin, its prescription painkiller".

"The case was settled for about $200 million to avoid going to trial and thus exposing Purdue Pharma's strategy for defending its underlying Oxycontin cases."

What I find particularly of note are the allegations by the insurance company, Steadfast.  "Steadfast, based in Schaumburg, Ill., alleges that privately held Purdue hired 40 law firms in 32 states to fight the Oxycontin claims. Purdue's legal team includes 322 partners, 849 associates and 1,023 paralegals, Steadfast says. All told, they billed the company for more than 1.2 million hours of work, Steadfast alleges"

If Steadfast alleges over billing and other things, instead of going to court, why doesn't the insurance company create a "managed law care" product.  You know, a kind of legal maintenance organization with a fee schedule and bundled legal services.  Why not offer this product to their client law firms who will then bring it to their clients as part of the service that all the companies with potential for liability require.  A monthly premium for legal maintenance insurance, sounds like a good idea.  

It should have happened a long time ago but attorneys outnumber physicians in the House and Senate, and the trial lawyers association keeps on giving to both parties, albeit a lot more to the Dems while they were running things.

Check out this page one story in the Wall Street Journal this morning.

First global economy, then global grassroots politics.  Do ya' think?