tagged w/ Stagflation
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Are you ready for an economy that has high inflation and high unemployment at the same time? Well, welcome to "Stagflation 2011". Stagflation exists when inflation and unemployment are both at high levels at the same time. Of course we all know about the high unemployment situation already. Gallup's daily tracking poll says that the U.S. unemployment rate has been hovering around 10 percent all year so far. But now thanks to rapidly rising food prices and the exploding price of oil, rampant inflation is being added to the equation. Normally inflation is a sign of increased economic activity, but when the basic commodities that we depend on to run our economy (such as oil) go up in price it actually causes a slowdown in economy activity. When the price of oil goes up high enough, it fundamentally changes the behavior of individuals and businesses. Suddenly certain types of economic activities that were feasible when oil was very cheap are not profitable any longer. When the price of oil rises to a new level and it stays there, essentially what is happening is that more "blood" is being drained out of our economy. Our economy will continue to function when there are higher oil prices, it will just be a lot more sluggish.Are you ready for an economy that has high inflation and high unemployment at the same... more
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Roubini warns that if policymakers try to fight rising budget deficits by raising taxes and cutting spending, they could undermine any recovery.Roubini warns that if policymakers try to fight rising budget deficits by raising... more
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is this still America?
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mekbd
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added this
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3 years ago
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Big Finance and Big Government have much in common. Both are coveted by Harvard graduates. Both are characterized by an arrogant sense of entitlement and importance.Big Finance and Big Government have much in common. Both are coveted by Harvard... more
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mekbd
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added this
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3 years ago
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interesting
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mekbd
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added this
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3 years ago
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He gets it.
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mekbd
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added this
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3 years ago
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"A debate has been raging for some time among those in the finance industry about whether the United States is currently experiencing inflation, deflation, stagflation, reflation, hyperinflation, or maybe even some other sort of "-flation" that only Dr. Seuss could imagine.
Unfortunately, much of this debate is unproductive because the participants use varying definitions of these terms, and even when they use the same ones, deciding on one simple label might not be sufficient to describe the deeper economic forces at work and what their effects are likely to be. Given the confusion, this article will add some color to the debate by offering usable definitions of the terms inflation and deflation and then attempt to show what is occurring in today's economy."
(End of excerpt)
Full article at link by Matthew Beller// Ludwig von Mises Institute"A debate has been raging for some time among those in the finance industry about... more
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Just a very Informative little piece and worth a read.
"While we squander hundreds of billions of dollars in Iraq, the U.S. government spends a mere $3 billion or so per year on all its energy research - around 36 hours of Pentagon spending! "Just a very Informative little piece and worth a read.
"While we squander... more
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Hundred-dollar oil prices, creeping inflation in food and other commodities, gold behaving the way it did in 1979--could we be in for a repeat of stagflation?
The economy may be headed into the tank, but don't break out the leisure suits and Blue Nun just yet.
Hundred-dollar oil prices, creeping inflation in food and other commodities, gold... more
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khsing
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added this
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4 years ago
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