Sucessfully fooling the bond market for decades by hiding the 'true inflation'(which they claim is a high as 8-10%) while they earn lower rates. How you austrians economists explain this flaw on your view of government intervention?Or are you guys still waiting when the 'fiat money will be exposed for its fraud'. Let me guess, the rothchields are buying bonds so nobody suspects anything..
Our trading partners fear stopping the music. It will damage them as well as us. They invest in the bonds because they are even more afraid not to. My guess is they will try to gradually shift out, and maybe try to hedge it quietly. The bigger question is why is OUR government so stupid as to be borrowing more when they already have 2 or 3 generations worth of debt that will never be repaid. Amazing it only took one azzhole, one lesser azzhole, and 534 cohorts 7 years to do it. I excluded Ron Paul. BTW, I only think inflation is about 7% overall, and think it would be 10% if those trading partners were buying things instead of bonds, but my vote doesn't count.
Please show where austrian theory states that gov't is hiding the true inflation rate. I have never seen such theory. You simply make up something out of thin air, then shoot it down. How straw man of you.
Does anyone know how many times the formula for CPI has been changed in the last 10 years? 20 years? 30? etc?
what flaw are you talking about and who is the "they"? bondholders government or Austrian economists? It's hard to understand what you're posting about
I'm talking about the bond market and earning rates. dont you forgot austrian economists only buy gold?of course I mean the bondholders. the flaw is to say governments are incompent on everything then proceed to say inflation is vastly understaded by government lying while the bond market believes the numbers quite well
Try shadowstatistics.com They have the inflation and unemployment numbers calculated the same way as they used to be in the 70's. The government needed to change the method to prevent COLA from stoking the inflation fires and worsening the debt/deficits.