Category: Stagflation
The analysis published under this category are as follows.
Sunday, April 06, 2014
Abenomics Stagflation - It's in Shinzo Abe's (Political) Genes / Economics / Stagflation
By: Richard_Mills
Japanese Prime Minister Shinzo Abe's "Abenomics" goal was to end a long miserable decade and a half of deflation by kick starting the economy. This was going to happen because of massive yen creation. The fiat balloon would induce consumers to spend and corporations to reinvest profits, convinced by a rising stock market and surging exports that all is well.
The Bank of Japan pumped liquidity into the economy at a pace even faster than the U.S. Federal Reserve - $60 billion a month versus $85 billion (the U.S. economy is three times larger than Japan's).
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Friday, January 24, 2014
What Stagflation Means for Investors / Stock-Markets / Stagflation
By: Profit_Confidential
Michael Lombardi writes: The Bureau of Labor Statistics just reported that inflation in the U.S. economy increased by 0.3% in the month of December and that the Consumer Price Index (CPI) for the entire year of 2013 increased by only 1.5%. (Source: Bureau of Labor Statistics, January 16, 2014.)
Is inflation in the U.S. economy really this low?
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Saturday, December 22, 2012
Republican Sellout Invites Stagflation / Economics / Stagflation
By: John_Browne
While it may not be a surprise that the Republicans are preparing to yield on their vow to oppose tax hikes, it should raise investor concerns the world over that an upcoming budget agreement will likely involve a Congressional surrender of its authority to set the federal debt ceiling. In exchange for this, it appears that the Republicans have simply done nothing to halt, or even curb, the dangerous federal spending trajectories or the current drift towards greater state control of the economy. President Obama has politically outmaneuvered the Republicans, even going as far as evoking the Newtown massacre as a reason for quickly concluding a deal. As a result, it is likely that the GOP will bear the blame for any breakdown in fiscal cliff negotiations. They could wear such an outcome as a badge of honor, but nothing indicates that they have the political courage to do so.
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Friday, August 19, 2011
Threat of Economic Stagflation Looms as Prices Rise Despite Bad Economy / Economics / Stagflation
By: Money_Morning
David Zeiler writes:
Few are willing to acknowledge the threat of stagflation, but reports showing inflation rising more quickly than expected - even as growth is slowing - indicate that this scourge of the 1970s may be stalking the U.S. economy.
Every economic report nudges the United States closer to the definition of stagflation - a condition marked by slow economic growth, high unemployment, and soaring prices.
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Thursday, August 18, 2011
How to Save Your Wealth From Stagflation / Stock-Markets / Stagflation
By: Money_Morning
Sean Hyman writes:
The year was 1973.
I was just a toddler, so I couldn't fully appreciate the next-generation Camaro that had just come out or the release of the new Pontiac Firebird Formula.
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Friday, June 03, 2011
Fed Economic Stimulus Leads to Stagflation / Economics / Stagflation
By: John_Browne
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
By: Sy_Harding
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.
Tuesday, November 02, 2010
From Quantitative Easing To Stagflation? / Economics / Stagflation
By: Dian_L_Chu
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.
Saturday, October 17, 2009
Japan a Deflation Death? - Nope Stagflation / Economics / Stagflation
By: Phill_Tomlinson
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.
Friday, August 28, 2009
Transition From Financial Crisis to Stagflation / Economics / Stagflation
By: Christopher_Laird
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
By: Money_Morning
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.
Monday, June 08, 2009
Is the U.S. Economy Heading for Stagflation? / Economics / Stagflation
By: Gerard_Jackson
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.
Tuesday, April 28, 2009
Why It’s Stagflation, Not Hyperinflation... For Now / Economics / Stagflation
By: Michael_Pento
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.
Wednesday, April 01, 2009
Economic Stimulus Recipe for Cooking up Stagflation / Economics / Stagflation
By: Michael_Pento
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
By: Eric_deCarbonnel
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
By: Chris_Galakoutis
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
By: Money_Morning
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
By: Richard_C_Cook
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
By: David_Morgan
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
By: Gary_Dorsch
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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