…that monetary policy is too tight:
Putting his money where his mouth is? Eric Cantor, the Republican Whip in the House of Representatives, bought up to $15,000 in shares of ProShares Trust Ultrashort 20+ Year Treasury ETF last December, according to his 2009 financial disclosure statement. The exchange-traded fund takes a short position in long-dated government bonds. In effect, it is a bet against U.S. government bonds—and perhaps on inflation in the future.
I don’t really care if Eric Cantor enjoys losing money hand over fist…but more seriously, we need some inflation to close the output gap (current NGDP vs trend NGDP from the Great Moderation), and get the real economy moving again…lest we want more socialism (or more fiscal “stimulus”)?