One unaddressed reason why the natural interest rate is falling is Moore's Law. In an an increasingly networked, automated world it lends a hyperDEflationary bias to all commercial activities. It truly is a hyperDEflationary bias. Think of it. Implicitly structured into most long term business deals is a cost factor which collapses by 50% every 18 months. That fits the textbook definition of a hyperDEflationary plunge.
Yet this massive, downward pricing pressure is NOT factored into our growth and spending projections.
This is a key reason why the natural interest rate is declining. Matt Dubuque @mjd1735 on Twitter
Tony Frank - 8 years ago
How can the central banksters have an inflation target if they don't know how to compute it?
One unaddressed reason why the natural interest rate is falling is Moore's Law. In an an increasingly networked, automated world it lends a hyperDEflationary bias to all commercial activities. It truly is a hyperDEflationary bias. Think of it. Implicitly structured into most long term business deals is a cost factor which collapses by 50% every 18 months. That fits the textbook definition of a hyperDEflationary plunge.
Yet this massive, downward pricing pressure is NOT factored into our growth and spending projections.
This is a key reason why the natural interest rate is declining. Matt Dubuque @mjd1735 on Twitter
How can the central banksters have an inflation target if they don't know how to compute it?