An excellent interview with Jim Grant (aka, the guy Piezoe had never heard of). How one can profess oneself as being knowledgeable about interest rates and never hear of Jim Grant is beyond me, but I digress. http://video.cnbc.com/gallery/?video=3000409911 Argh, this should have been posted in economics, not here.
Some of the fed's preferred indicators show inflation expectations falling to levels where qe was previously begun. First inflation breakevens, (nominal-tips), and then on the second chart forward inflation expectations calculated from ten yr and five yr inflation rates. Looks more like the fed will qe us again rather than raise rates.
The Keynesians in this group (and all over the world) should appreciate the irony, as it is in Keynesian economics that the Liquidity Trap is discussed and brought to life. More QE, sure, that's the solution. When something doesn't work, it's because it wasn't big enough.
so good and so right. we have a mis made economy since the 1990s. Which is why we became a service economy instead of an economy that made things. You can't really have an all service economy for very long... as the other countries will learn to service their own productivity. Also if you follow what grant is saying... the policies chosen destroy the middle class and real productivity is exchanged for short term asset productivity. I don't even want to get into how much the dems and the rs have destroyed the future of the middle class with tax and inflate.
Here's an interview where Grant gets to explain his viewpoint without being constantly interrupted by the idiots on CNBC: http://www.pbs.org/wgbh/pages/frontline/shows/betting/pros/grant.html Grant is a contrarian and eventually all contrarians turn out to be right. but then... "in the long run we are all dead" John Maynard Keynes