Economic literacy question

[opebo]

'an increase in the rate'?  So you're saying the rate is increasing at an increasing rate?  or the same rate only it is a smaller number than the GDP increase?  Or that the rate of increase in the rate of inflation is greater than the rate of increase in the growth rate of the GDP?

I think you need to be more literate to pose such questions, CarlHaydan.

[opebo]

Now, for some data:
http://www.tradingeconomics.com/united-states/gdp-growth
http://www.usinflationcalculator.com/inflation/current-inflation-rates/

I enjoyed looking at those, Carl, but I would remind you that generally speaking GDP growth rate data is adjusted for inflation.

[opebo]

What was the inflation rate was assumed in the calculations to "adjust for inflation" for the second quarter of 2011?

No doubt it was inaccurate, since accuracy in such figures is impossible, but in my opinion we are in a severe deflation, so any claims of inflation are dubious.

[opebo]

What is unusual about all of this, is that it seems to me much of it is generated by a lack of confidence as opposed to the usual tools really being out of whack. What the economy really needs to do is see a real good therapist, who can convince it that this too shall pass - eventually.

Torie, I'm afraid the master himself, John Maynard Keynes talked about the animal spirits.. it is in the nature of capitalism that panic, irrationality, and fear rules the day.  We need the State to take over the economic function in order to provide confidence and reduce the deleterious influence of the market.

[opebo]

How has that worked out over the past three years? Oh, I get it: The Stimulus Package was just not big enough. My mistake. Let's borrow two or three trillion from the Chinese this time around. That ought to do it, right?

Well, Politico, it is not unlike when you have an infection - you have to take all your medicine, not just set your own dose.  The stimulus was like giving an aspirin to an elephant.

What we need is massive takeover of the economy by the State, as in World War II.   This is the only way that these deflationary depressions can be solved.