If we have 'deflation' should we have deflation adjusted measures of growth?
Is unlimited credit to big business causing inflation to fall?
This defies common sense but it is what is happening. The measurements must be very bogus, or most people if they were given a million dollars they would bury it in the garden.
The price of commodities are falling, are these price rises feeding into the price of products?
Oil adjusted inflation is at almost 0%, what is happening?
The signals being given out are very mixed at the moment, there is definitely a climate of unease in the world, is this affecting the behavior of Decision makers and consumers?
The volatility of the financial market seems to be governed by short-term rumors and a culture of gambling which is antithetical to the law abiding and honest society they find themselves within. With the latest piece of news a massive glut of savings raises all boats, quite chaotically.
It is apparent that the rate of return that can be gained by investing in Financial Assets far exceeds the rate of return adjusted for risk of investing in real assets. This leaves the burden of entrepreneurship upon those who have no experience of doing this. Modern business practice is very critical of the conglomerate and advises that company should specialize in what they do best, and return excess cash to shareholders. Then by magic these shareholders will distribute their cash into the economy and Bill Gates from 2015 will re-invent the pocket calculator.
You suspect that I am a bleeding heart, but I am not, society is too complex for Democracy, never mind the board of directors, so I do not advocate that business does it societal duty. I think business should do what it does best.
For the first and probably only time in modern history it is almost free to borrow money. This does not make sense. Inflation has vanished in order that it does cost to borrow money, even now logic must prevail! This is the best time for big business to take a risk, to do a side project, to try and build something green.
This all sounds fantastic and governments have incentivised businesses to spend money with 0% interest rates, but seemingly not actually enough to get them to invest.
The first thing that comes into mind is to tax them, even though we all know what happens when political parties and politicians get hold of share of the public coffers to spend as they want.
I do not claim to know the answers but I watch TV programs about America Works, but I know it is cheaper to pay them to stay at home