Category: Stagflation
The analysis published under this category are as follows.Friday, June 03, 2011
Fed Economic Stimulus Leads to Stagflation / Economics / Stagflation
Despite the full onslaught of Keynesian economic policies, including the injection of unheard of sums of printed money into the financial system, state sanctioned accounting tricks, negative real interest rates, massive deficit spending, and debasement of the U.S. dollar, the American economy is slipping back fast towards recession. This week's release of dismal employment figures, in which the entire economy could only muster 54,000 new jobs, confirms that fact.
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Friday, April 29, 2011
Here Comes Stagflation! / Economics / Stagflation
It’s official. The U.S. economic recovery is stumbling again, as indicated by Thursday’s report that GDP growth plunged to only 1.8% in the 1st quarter (from 3.1% growth in the previous quarter). And spiking oil, food, and other commodity prices have inflation on the rise.
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Tuesday, November 02, 2010
From Quantitative Easing To Stagflation? / Economics / Stagflation
The United States economy grew at a sluggish annual rate of 2 percent in the third quarter, the Commerce Department reported last Friday. On the bright side, the economy is growing faster than the 1.7 percent growth in the second quarter and has registered the fifth straight quarter of expansion.
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Saturday, October 17, 2009
Japan a Deflation Death? - Nope Stagflation / Economics / Stagflation
Gordon Brown this week announced what can only be described as a car boot sale of UK PLC's bric-a-brac goods, an attempt to sooth markets regarding the budget deficit. Many of the items have been for sale before, but I'm sure the government in their current desperation will be willing to accept lower offers this time around. I agree with privatisation in getting the state out of our lives, but a student loan book and a crossing in Kent are hardly big ticket items, never mind the fact that they are assets that generate money.
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Friday, August 28, 2009
Transition From Financial Crisis to Stagflation / Economics / Stagflation
Now that we are just about 2 years into the world financial/credit crisis, it’s time to ask what is next in one or two years. One is to ask will stagflation emerge in 2010 and after, which is highly gold bullish long term.
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Tuesday, August 04, 2009
Bernanke Has Put the U.S. Economy on the Path to Stagflation / Economics / Stagflation
Martin Hutchinson writes: As the U.S. and global economies stabilize, economists wonder how U.S. Federal Reserve Chairman Ben S. Bernanke will manage to reverse all the monetary stimulus that has been infused into the economy over the past year and prevent inflation.
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Monday, June 08, 2009
Is the U.S. Economy Heading for Stagflation? / Economics / Stagflation
Irrespective of how Obama's media supporters try to spin it the unemployment situation is grave and still deteriorating. This was not supposed to happen. According to his economic advisors the situation would be disastrous unless congress rushed through Obama's stimulus package. Dr. Christine Romer -- one of Obama's chief economic advisors -- predicted unemployment would hit 8.8 per cent unless swift action was undertaken.
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Tuesday, April 28, 2009
Why It’s Stagflation, Not Hyperinflation... For Now / Economics / Stagflation
In the longer term, the risk of the U.S. suffering through a bout with hyperinflation is very real. However, in the short term what we most likely face is a protracted period of stagflation first because of our record debt and the Fed’s decision to pay interest on excess bank reserves.
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Wednesday, April 01, 2009
Economic Stimulus Recipe for Cooking up Stagflation / Economics / Stagflation
Actually, We're not Saving Yet - There seems to be much confusion lately about the consumer's increased savings rate and if this is a good or bad condition for the health of the U.S. economy. While many Austrian economists are lauding our new found predilection to save, the Administration is obsessing over forcing banks to increase lending and compelling consumers to step up their borrowing.Read full article... Read full article...
Thursday, November 20, 2008
Hyperinflation to Follow Deflationary Debt Unwind / Economics / Stagflation
In the investor community, there currently exists the belief that hyperinflation is impossible because of the deflationary debt unwind now underway. However, this logic is based on the flawed assumption that the money supply is the only important factor when determining inflation or deflation. This ignores the fact that for nations heavily dependent on foreign imports, like the US and Iceland, the purchasing power of the currency is the most important determinant of inflation/deflation.Read full article... Read full article...
Friday, October 17, 2008
Deflation Scare the Perfect Camouflage for Inflationary Money Printing / Economics / Stagflation
It is said the market can sniff out prospective problems and price itself accordingly. If so, then someone needs to get this dog some nasal spray, lickedy-split! The deflation scare currently hovering over the entire market, particularly in the metals and commodities sectors, has been brutal. But the key question today is whether this “scare” will evolve into a genuine deflation threat to the US and the world?Read full article... Read full article...
Wednesday, August 27, 2008
Stagflation Becoming an Economic Reality / Economics / Stagflation
William Patalon III writes: U.S. Federal Reserve Chairman Ben S. Bernanke didn't use the "S" word - stagflation - but he might as well have.
On Friday, the U.S. central bank chief said that the financial crisis that has hammered the U.S. market is combining with rising inflation to eviscerate American economy. Together, the two forces are making it extremely difficult for the Fed to restore economic stability in the U.S. market.
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Tuesday, August 19, 2008
Stagflation a Weapon of Mass Wealth Destruction / Economics / Stagflation
U.S. wholesale prices in July 2008 grew at the fastest rate since 1981. The cost of materials has risen 9.8 percent in the last twelve months, according to government data. While gasoline prices fell the week of August 18 to $3.74 a gallon, they remain far higher than the $2.40 a gallon of mid-2005. Meanwhile, the price of food at the grocery store continues to climb, while consumer purchasing power remains stagnant.Read full article... Read full article...
Friday, August 01, 2008
Silver and Monetary Considerations of Hyperinflation / Economics / Stagflation
Many of you are probably too young to appreciate the full impact of the hyperinflation in Germany after WW1. It was devastating. This picture shows you the amount of paper that was equal to one silver dollar, or ¾ of one troy ounce of fine silver. After seven years of constantly accelerating inflation, the mark is finally stabilized at the rate of over 4 trillion to a U.S. dollar. The black market rate, however, was an incredible 12 trillion to the dollar at this time. The pre-inflation exchange rate for the mark was by contrast a modest 4.2 to the U.S. dollar. Can anyone say Hyperinflation?Read full article... Read full article...
Thursday, July 10, 2008
Global Stock Markets Hit by Staglation Fears and Threat of War with Iran / Economics / Stagflation
In today's lightning fast and violent markets, where a constant barrage of news and noise flows into the marketplace each day, it's easy to forget a vital piece of information that was released just a few hours or days earlier. Trader sentiment is often swayed by the price action of the moment, and it's easy to lose sight of the mega-trends and core issues, that move the markets over the longer-term.It was nearly one-year ago, on July 17, 2007, when Bear Stearns BSC said in a letter to investors, that two of its troubled hedge funds that bet heavily on risky sub-prime mortgages had very little value. “The preliminary estimates show there is effectively no value left for the investors in the Enhanced Leverage Fund and very little value left for the investors in the High-Grade Fund, as of June 30, 2007,” BSC said.
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Wednesday, July 09, 2008
Stagflation Sightings Multiplying / Economics / Stagflation
We have long warned that stagflation, or economic contraction accompanied by inflation, would become so evident that even the most optimistic observers could not deny its virulence.Read full article... Read full article...
Wednesday, July 02, 2008
Fed Stuck in Neutral on Monitory Policy Response to Stagflation / Economics / Stagflation
On June 25th , the Fed made no changes in its key interest rates and issued a statement that underscored how narrow their room for maneuver had become. Caught between the opposing forces of economic contraction and inflation, the Fed revealed that it was locked in neutral. Given that the Fed must use opposite remedies to satisfy the demands of its dual mandate (higher rates to curb inflation and lower rates to stimulate growth), the Fed is stuck firmly in neutral. There appears to be nothing left to do except to talk and hope for the best.Read full article... Read full article...
Saturday, June 28, 2008
The Slow Motion Recession, Inflation, Deflation and Stagflation / Economics / Stagflation
"We appear to be entering a period of serious stagflation with sharply rising expected and actual inflation combined with large downside risks to growth and employment."
"I would argue that what we are seeing is an acceleration of expected consumer price inflation in the context of a sharp expansion in global liquidity. It is hardly surprising that the prices of those commodities, such as oil, for which the short-run price elasticities of supply and demand are low move upwards strongly when there is a rise in expected general inflation.
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Thursday, June 26, 2008
Money Supply Surge to Lead to US Inflationary Depression / Economics / Stagflation
Gold closed at $879.60 in New York yesterday and was down $9.20 and silver closed at $16.48, down 13 cents. Gold fell prior to and shortly after the Federal Reserve's decision to keep interest rates on hold at 2%. However, with rates remaining extremely accommodative and inflation surging gold soon recovered and rallied into the New York close and continued rallying in electronic trading. Gold has continued to rally in Asian and early European trading.Read full article... Read full article...
Monday, June 23, 2008
Don't Worry About a Return to 1970s Style Stagflation / Economics / Stagflation
Recent months have resurrected a potent economic villain of the past—stagflation.
The U.S. economy is seeing little to no growth, while at the same time inflation has risen to levels not seen in the better part of two decades due in large part to soaring food and energy prices.
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