Comments on: The coming economic slump http://polizeros.com/2007/11/18/the-coming-economic-slump/ Musings on politics: anti-war, global warming, peak oil and otherwise Sat, 11 Oct 2008 15:39:59 +0000 http://wordpress.org/?v=abc By: DJ http://polizeros.com/2007/11/18/the-coming-economic-slump/#comment-145343 DJ Sun, 18 Nov 2007 05:49:36 +0000 http://polizeros.com/2007/11/18/the-coming-economic-slump/#comment-145343 It's even worse than they want to admit-- because while everyone is focused on the stagnating economy, <a href="http://asymptoticlife.com/2007/11/15/inflation-and-layoffs--imagine-that.aspx" rel="nofollow">inflation is also rising</a>. DOL reports .3% increase in prices for Sept AND Oct. That's 3.6% annualized. So far. While the Fed tries to stimulate the economy, the dollar plunges and prices rise. Inflation is pretty much inevitable after a government borrowing binge-- and we're in the midst of the worst debt binge our country has ever seen. So fasten your seat belts, because we're in for something we haven't seen since the early 1970s: stagflation. It's going to be a bumpy ride. It’s even worse than they want to admit– because while everyone is focused on the stagnating economy, inflation is also rising. DOL reports .3% increase in prices for Sept AND Oct. That’s 3.6% annualized. So far. While the Fed tries to stimulate the economy, the dollar plunges and prices rise.

Inflation is pretty much inevitable after a government borrowing binge– and we’re in the midst of the worst debt binge our country has ever seen.
So fasten your seat belts, because we’re in for something we haven’t seen since the early 1970s: stagflation. It’s going to be a bumpy ride.

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