http://www.usinflationcalculator.com/inflation/historical-inflation-rates/
http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
Negative real interest rates all the way up to 10 yr bonds. We should be stimulating the economy.
Speaking of externalities, how can you totally ignore the global flight of cash and capital to US bonds when assessing US inflation??? Maybe we should check out the price of commodities and compare??? Or perhaps blue chip stocks??? Those ought to be great metrics to assess the costs of goods or capital, amirite?
CPI even shows we're outside are target inflation rate of 2-3%
You aren't actually proposing that because the US can borrow at a low rate we should??? What's the US Fed Govt. ROI??? I bet it's lower than US bond rates.
I'm not, and neither is the interest rate you dolt. It is why S&P's downgrade was ridiculous. Investors at every level are finding US bonds a necessary check against instability even now. I'm suggesting that because there is a clear lack of demand. This makes no sense, will not addressJust because Perry says that Keynesian economics are dead doesn't mean he knows what he's talking about.
Commodity prices and stocks are horrible measures of inflation because they are incredibly volatile. That's why CPI was created to measure CONSUMER inflation. People with no jobs don't buy things, we all agree on that. So....I'm proposing more government investment in capital improvements and infrastructure would help create much of the demand in many of the same industries that are being hurt by the housing boom.
The idea that Bernacke is some sort of mad scientist tossing dollars into the hearth of the runaway steam engine of inflation is something I thought only gold (and apparently now silver) worshippers like Paul would subscribe to. But instead that seems to be a plank on the presidential platform of the Republican party. Huntsman and maaaaybe Romney know this is idiotic, but Romney is willing to pander to it (Romney simultaneously wants to start a trade war with China!). Huntsman should continue to point out how stupid this all is.
If you don't think the Federal Reserve can cause inflation, you are a full blown Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!). Didn't watch the GOP debate, if they are alleging runaway inflation right now, they're pandering.
Capital Improvements
OMG, you've got to be joking. Great idea, FDR. Let's just skip it, and fight WWIII NOW!!! 128 weeks of unemployment is enough wal-mart style stimulus. We don't need guys slugging out public librarys and town halls for the sake of doing something. We've borrowed enough and bloated the bureaucracy into a full blown leviathan. it's so big, we can't reduce the size of it without damaging the economy, all in the name of keynesian bullshit.
FYI, Keynsian economics is dead. It actually died years ago. Consumption based economies lead to our current situation. Catch up please.
