Thursday, October 9, 2014

An Email From A Bureau of Labor Statistics Economist

A Bureau of Labor Statistics economist emailed me this morning about the EPJ Daily Alert:
Hi Bob,

Hope you are doing great. This is an excellent alert, lots of interesting analysis and information.

I particularly like the analysis provided by Feldstein when he mentions that because rates are at 0%, and inflation is basically at 2% then real rates are negative and therefore this is an inflationary period. It never ceases to amaze me how Keynesian economists are all out loud crying for higher inflation claiming that there isn't any. Don't they know basic economics? Didn't they learn in principles of macro the difference between nominal and real rates? This is outrageous in my opinion. Meanwhile savers keep getting crushed and financial markets become more leveraged and prone to a crash. We never learn our lessons from History.

On another note, I share your views of developing price inflation, and that ABCT, the best theoretical framework to understand economic cycles is about the Boom and the Bust! Not just downturns.
Shouldn't you be reading the EPJ Daily Alert?


  1. Savers getting crushed? Funny that people who call for an end to fractional reserve banking care about savers getting a low interest rate. If you end fractional reserve banking, then savers collect no interest on their savings. They can only hope for deflation to give them a real return. Otherwise they are paying the bank a fee to warehouse their money.

    The labor department economist should look at the figures published by his employer. The annual rate of inflation from Aug 2013 to Aug 2014 is 1.7% for both core and headline. Inflation is really taking off as predicted. hahahaahahahahaha

    Why is this libertarian working on the tax payer's tit? How come he can't get a real job?

    1. "If you end fractional reserve banking, then savers collect no interest on their savings."

      I thought the idea was you lent money to the bank for a set period of time, and they lent it back out for that time period (or less) with markup.

      I personally don't think we need to end fractional reserve banking. We just need to end federally sponsored moral hazard.

    2. "Why is this libertarian working on the tax payer's tit?"
      who said he was a libertarian? he might be edging toward the Austrian school but be lagging on the other parts. the road out of Emerald city can be hard sometimes.

  2. woa, is this an Austrian in the BLS?! Don't loose that email address.