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But in the last few months, various outposts in that world — Silver City and New Tristram, to name two — have borne more in common with real world places like Harare, Zimbabwe in 2007 or Berlin in 1923 than with Dante’s Inferno. A culmination of a series of unanticipated circumstances — and, finally, a most unfortunate programming bug — has over the last few weeks produced a new and unforeseen dimension of hellishness within Diablo 3: hyperinflation.

In casual use, the term “inflation” is used in conjunction with price increases. From the perspective of the Austrian School of economics, though, that phenomenon is a secondary effect of increases in the money supply.

Furthermore, inflation is not simply an increase in the supply of money within an economy; it is the increase in that portion (if any) not backed by a commensurate increase in specie

The admission that a crisis exists is a critical moment, because this is when most others start to change their behavior in reaction to the crisis.

First, The New York Times columnist and Nobel Prize-recipient Paul Krugman penned a piece titled "Hitting China's Wall." He wrote, "The signs are now unmistakable: China is in big trouble.

The Great Moderation was no accident; it was the consequence of the financial institution-building that began at Bretton Woods in 1944. Determined to avoid the devastating economic shocks of the interwar period, a generation of leaders designed a framework of strong institutions, including the International Monetary Fund and World Bank, that could intervene when market forces alone could not maintain equilibrium.

Beneath the calm, though, the growing complexity of the global economy meant that over time, the magnitude and frequency of institutional interventions increased. John Maynard Keynes, the British economist whose ideas shaped the postwar economic order, himself never imagined that the powerful tools created in the Bretton Woods system would be used as frequently as they were, and by the early 1970s, more than a few economists began to wonder whether these measures were treating the symptoms of a problem and not its root cause. Perhaps the global economy was not an equilibrium system at all.

QE is expanding the money supply — in essence printing money — and using that money to purchase items that investors are avoiding for whatever reason. This forces money into the system and — in theory at least — lowers the cost of credit throughout the economy. It also allows the central bank to target specific portions of the economy where it thinks the most good can be done. QE is generally shunned by central banks, as unduly increasing the money supply tends to be inflationary, and nothing eats away at purchasing power (and with it political support) like inflation.

I think Mr Yglesias' proposal that the Fed target a 3-4% rate of inflation is indeed the single best thing Washington can do to create jobs today.

there's something that bothers me slightly about this whole "job creation" discussion. The implicit idea seems to be that policy should aim to increase employer demand for employees. But it occurs to me that perhaps some of the long-term unemployed want remunerative work, but are a bit sick of "employment".

Philosophical questions of self-ownership and the alienability of labour aside, I am convinced that autonomy is profoundly important to most of us, and that the sort of self-rental involved in the employment relation is regularly experienced as a lamentable loss of autonomy, if not humiliating subjection. I think a lot of us would rather not work for somebody else.

For classical economists, it was impossible to understand politics without economics or economics without politics.

The use of the term “economy” by itself did not begin until the late 19th century.

The fluctuations in the CMB temperatures at large angular scales do not match those predicted by the standard model in physics — their signals are not as strong as expected from the smaller scale structure revealed by Planck.

An asymmetry in the average temperatures on opposite hemispheres of the sky runs counter to the prediction made by the standard model that the Universe should be broadly similar in any direction we look.

A cold spot extends over a patch of sky that is much larger than expected.

What's more, his perps would have to be held in separate cells, because they're of remarkably different stripes. Milton Friedman is implicated (his sin: advocating managing the money supply), but so is Paul Krugman (and of course his spiritual mentor John Maynard Keynes).  Franklin Roosevelt is on the list of "policy villains," but so is Richard Nixon, who dealt the final blow to the gold standard. Former Reagan economic advisor Art Laffer (Mr. Supply Side) is there, a few names away from Larry Summers (these days, Mr. Demand Side), who served, most recently, as Barack Obama's top economic advisor.

It's easy to poke fun at a rant like this, and most of it is just plain wrong (more on that in a moment). But what's more interesting is to figure out where Stockman is on target.

This reminds me of something writer Robert Heinlein once said: "Any government will work if authority and responsibility are equal and coordinate. This does not ensure 'good' government, it simply ensures that it will work. But such governments are rare — most people want to run things, but want no part of the blame. This used to be called the 'backseat driver' syndrome."

The problem is that they don't have, in President Obama's words, "skin in the game." When it comes to actual wrongdoing, they're shielded by doctrines of "absolute immunity" (for the president) and "qualified immunity" (for lesser officials). This means that the president can't be sued for anything he does as president, while lower-ranking officials can't be sued so long as they can show that they were acting in a "good faith" belief that they were following the law.

In this period, the European Union has stopped functioning as it did five years ago and has yet to see its new form defined. China has moved into a difficult social and economic phase, with the global recession severely affecting its export-oriented economy and its products increasingly uncompetitive due to inflation. The U.S. withdrawal from Iraq has created opportunities for an Iranian assertion of power that could change the balance of power in the region. The simultaneous shifts in Europe, China and the Middle East open the door to a new international framework replacing the one created in 1989-1991.

the driving force behind developments in Europe in 2012 will be political, not economic.

Germany's economic performance is tied strongly to external developments because of the country's reliance on exports.

Europe is Germany's largest customer, so the German economy depends on the strength of the European consumer base.

However, Germany's economy has not escaped the crisis unscathed. Over the past few years, German economic growth has slowed. According to the International Monetary Fund, Germany's GDP grew by only 0.9 percent in 2012, down from 4 percent in 2010.

In 1972, the year Sears began building the world’s tallest building in downtown Chicago, three out of every four Americans visited one of its locations every year — a larger proportion than have seen “The Wizard of Oz.” Half of all households held a Sears credit card — more than go to church on Christmas. Sears’s sales accounted for 1 percent of the Gross National Product.

Unfortunately, it’s been all downhill for middle-class, home-owning America since then, and it’s been all downhill for Sears, too.

rising wages threaten to undercut China’s comparative advantage.

Top officials mostly have remained quiet about labor issues. President Hu Jintao and Premier Wen Jiabao have alluded to wanting workers to have proper work conditions and to live dignified lives, but no high-level officials have commented specifically on the recent spate of strikes.

"The creation, selection, promotion, and proliferation of numbers are … the stuff of politics," the editors write in their introduction. No debate lasts very long without a reference to data, and as the numbers boil their way into the argument, you must challenge them or be burned blind by them. The essays presented in Sex, Drugs, and Body Counts—about human trafficking, the Bosnian death count, the Darfur genocide, armed conflict, drugs, terrorism, and more—counsel exactly that sort of skepticism.

Often, the editors write, even the most rigorous-seeming statistics conceal squishy measurements. Inflated numbers are designed to create the sense that something must be done now. Depressed counts are intended to convince the recipients that the problem is too small to worry about. Whether it's body counts in Iraq or kilos of Colombian drugs, the creators and disseminators of the numbers usually have greater interest in their size than their veracity.

the drug bureaucracy spends extra billions to produce bigger numbers because the public associates "more" with "better."

During the three decades after World War II, for example, incomes in the United States rose rapidly and at about the same rate — almost 3 percent a year — for people at all income levels.

The share of total income going to the top 1 percent of earners, which stood at 8.9 percent in 1976, rose to 23.5 percent by 2007, but during the same period, the average inflation-adjusted hourly wage declined by more than 7 percent.

The rich have been spending more simply because they have so much extra money. Their spending shifts the frame of reference that shapes the demands of those just below them, who travel in overlapping social circles. So this second group, too, spends more, which shifts the frame of reference for the group just below it, and so on, all the way down the income ladder. These cascades have made it substantially more expensive for middle-class families to achieve basic financial goals.

The primary focus of the NPC this year will be launching the 12th Five Year Plan, the country’s comprehensive goals for 2011-15.

By this time next year, China will be in the thick of the leadership swap, and by 2013, a novice leadership will be in charge.

across the country there is a sense of rising dissatisfaction with social conditions that have not kept pace with economic improvements, and dismay at the threat of inflation.

Zoom out a little. Think of this latest skirmish, that ended tonight, as part of an endgame to a thirty years' fiscal war in American politics. Reagan began it, by betting that slashing taxes would spur growth; he was right and wrong. Growth really did happen in the 1980s; but he bequeathed a debt that is with us today, and that he tried only fitfully to fix on his watch. The early 1990s saw the country draw down that deficit, by continuing Reagan's tax hikes under Bush I and then Clinton, and thanks to a peace dividend. Clinton's eventual surplus was, alas, more mirage than reality, for it hadn't solved the long-term entitlement problem or the healthcare cost problem, and was inflated by the tech bubble. Bush II comes in and wreaks havoc. He doubles down on Reagan on taxes and declares that deficits don't matter, while adding one major new entitlement, two massively expensive wars and throws in a financial collapse as a goodbye present. The result of all this was a recession that helped metastasize the debt even further. This was what Obama inherited.

What then? I think the Grand Bargain is the final step

When the Tunisian leadership began to fall, we were surprised at the speed with which similar unrest spread to Egypt. Once in Egypt, however, it quickly became apparent that what we were seeing was not simply a spontaneous uprising of democracy-minded youth (though there was certainly an element of that), but rather a move by the military to exploit the protests to remove Egyptian President Hosni Mubarak, whose succession plans were causing rifts within the establishment and opening up opportunities for groups like the Muslim Brotherhood.

We are entering a very dynamic quarter. The Persian Gulf region is the center of gravity, and the center of a rising regional power competition. A war in or with Israel is a major wild card that could destabilize the area further. Amid this, the United States continues to seek ways to disengage while not leaving the region significantly unbalanced. Off to the side is China, more intensely focused on domestic instability and facing rising economic pressures from high oil prices and inflation. Russia, perhaps, is in the best position this quarter, as Europe and Japan look for additional sources of energy, and Moscow can pack away some cash for later days.

Libya probably will remain in a protracted crisis through the next quarter.

Lost in the coverage is the fact that Greece constitutes 2.5 percent of Eurozone GDP and Eurozone member states’ direct exposure to Greece is manageable.

Eurozone member states have proven highly flexible in their handling of the crisis.