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Thursday, 18 February 2010 04:00

Is That Stagflation That I Hear Coming?

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From CNBC:


  • Jobless Claims, Inflation Jump as Economy Wobbles

Both the number of workers filing new applications for unemployment insurance and producer prices unexpectedly surged, dealing a setback to hopes the economy was showing a strong recovery.

Hmmm... What happens when wages and earning assets go down in value as input prices increase? I have warned of the stagflationary scenario several times in the past as the most likely outcome of the battle between the deflation camp and the inflation camp. See:

  • Economic contractions AND rising prices, dare Reggie utter the "I" word - Enter a global phenomenon
  • Reggie Middleton's Take on Investing for Inflation, pt. 1
  • Reggie Middleton's Take on Investing for Inflation, pt. 2
  • Reggie Middleton's Take on Investing for Inflation, pt. 3
  • Reggie Middleton's Take on Investing for Inflation, pt. 4
  • Reggie Middleton's Take on Investing for Inflation, pt. 5
  • More on my stagflation rant
  • Deflation, Inflation or Stagflation - You Be the Judge!
  • Is My Warning of the Risks of a Stagflationary Environment Coming to Fore?
  • China's Most Expensive Export: Price Inflation

Tagged under
  • Global Macro
  • Current Affairs
  • Asset Securitization Crisis

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More in this category: « Do Blogs Compete at a Level that Threatens Mainstream Media? BoomBust Bank Research Should Really Start to Look Interesting »

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