I am concerned about the threat of debilitating stagflation in the coming decade. With the fall of consumer and asset prices since 2008, some economists are confident that the potential for severe inflation is minimal at best. I think it is prudent for all of us to keep in mind that:
(1) The Federal Reserve has DOUBLED the monetary base in a short span of six months via its various recession-combating strategies. The last time the monetary base was doubled - took 13 years.
(2) Cutting back the monetary base to stop future inflation will be both technically and politically challenging for the Federal Reserve.
(3) Several groups, including the Congressional Budget Office, have warned that the increased government debt will hamper long-term growth in the private sector ("crowding out" effect).
(4) When the global economy begins to recover, a surge in demand for energy by emerging market economies may cause a serious "supply shock" for oil and other commodities.
I am concerned about the threat of debilitating stagflation in the coming decade. With the fall of consumer and asset prices since 2008, some economists are confident that the potential for severe inflation is minimal at best. I think it is pruden...
by hyperstagflation
Latest Activity
Jun 25, 2009
Date Joined
Apr 18, 2009
About this user
I post videos relevant to the peculiar macroeconomic phenomenon known as stagflation.
============================== What is stagflation? It is a condition of slow economic growth and relatively high unemployment (stagnation) accompanied by a rise in prices (inflation). ==============================
Subscribe to my channel if you would like to keep up with the latest news on stagflation and inflation or to get some tips on how to invest in an inflationary (or even hyperinflationary) economic environment.
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