Senator Mike Johanns Joins The Monetary Crank Wing Of The Conservative Movement

It sure would be nice if the President of the United States were to address this issue. Until then, he’ll just leave the field to the growing chorus of nutjobs:

A day before the Senate Banking Committee is due to vote on Diamond for the third time, the Nebraska senator said he couldn’t back someone who has been so outspoken in favor of more government spending and of the Fed’s easy-credit policies to lift the economy.

“We must be increasingly wary of the threat of inflation, yet the Fed continues to print money with reckless abandon,” [Mike] Johanns [R-Nebraska] said in a statement. He had previously supported Diamond twice on the Senate panel, but opposition from Republicans later prevented a vote on the Senate floor.

Recall my thirty years of inflation history:

You might also be interested in the Cleveland Fed’s historical data about inflation expectations:

Or the fact that inflation is currently set to remain below the Fed’s longtime 2 percent target for over a decade:

I’ll be happy to entertain theories about structural employment from anyone as soon as we turn this situation around. But until then, all signs continue to point to an economy suffering from substantial excess capacity.