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Why stagflation is coming

Discussion in 'Political Discussion' started by Real World, Jun 29, 2009.

  1. Real World

    Real World Moderator Staff Member

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    Some of the figures are eye popping.

    Why stagflation is coming

    By David R. Burton and Cesar Conda | Sunday, June 28, 2009

    Both the money supply and federal spending have increased at breathtaking rates over the past year, unprecedented in peacetime. The policy decisions made by the Federal Reserve Board and Congress virtually assure we will enter a period of 1970s-like stagflation.


    Why stagflation is coming - Washington Times

     
  2. godef

    godef In the Starting Line-Up

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    Well, if that's true, I don't remember the 70s being as bad as things are now. And apparently we worked our way out of that.
     
  3. tanked_as_usual

    tanked_as_usual Banned

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    it was worse........same unemployment, but throw in double digit inflation and double digit interest rates
     
  4. Fogbuster

    Fogbuster Pro Bowl Player

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    Far, far too much money has been printed -- not counting the record high amounts of counterfeit money now out in world circulation. That spells only one thing: inflation is coming as price gouging becomes endemic.

    Obama's statement that "some corporations are just too important to allow them to fail" (certain banks, GM, Chrysler, etc.) only means that the public has only just started paying for the bad practices of those failed entities.



    //
     
  5. Michael

    Michael Moderator Staff Member PatsFans.com Supporter

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    #12 Jersey

    Yes we did.

    [​IMG]
     
  6. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    IIRC there was even more unemployment, But when the effects of the reckless policies of this administration are felt, thing will get worse than the 70's.

    Problem is I don't know if there is a Reagan out there to undo the damage.:(
     
  7. mikey

    mikey In the Starting Line-Up

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    Barack Obama's favorite president



    .
     
  8. Real World

    Real World Moderator Staff Member

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    Should things get worse, and who knows that they will, although most seem to think so, we won't have the ability to lower interest rates, and spur economic activity. Rates are already at record lows, so that pig has left the barn.
     
  9. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    "If" inflation comes, it's a long way off. The M3 methodology is just one way to measure the money supply. There are many other things to consider....such as "how is the money being spent". If it's being used to pay down debt, it won't result in any inflation at all.

    Here are 2 very good arguments as to why we shouldn't expect inflation.

    Mish Shedlock's Inflation Scorecard: June 2009 Update -- Seeking Alpha

    Mish's Global Economic Trend Analysis: Money Supply is Soaring ... Right?
     
  10. State

    State In the Starting Line-Up

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    #70 Jersey

    Meltzer on Inflation | Odeo: Search, Discover and Share Digital Media from Millions of Audio and Video Clips

    It's coming, says Carnegie Mellon University top notch economist Allan Meltzer.

    He's written the History of the Federal Reserve.

    This is the kind of uber geeky stuff I listen to in podcast form on my iPod. I enjoy Russell Roberts' podcasts. If you have some time, listen to what a true expert has to say

    Here's a Meltzer NYT editorial from May: http://www.nytimes.com/2009/05/04/opinion/04meltzer.html
     

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