is here, and it's actually been here for a while. Rising commodity prices and a continuing bleak employment outlook are the sure signals. The inflation component is just gaining steam with rising oil and other commodity prices throwing a vastly under appreciated ripple effect throughout the economy.Bernanke and the Obama administration have tried to play down the inflation each month, for a very good reason. If they dare to stop printing the dollars, which is feeding the inflation, the Stagnation component will take a more sure hold and the ugly, dirty word STAGFLATION
would be laid bare.There are missing components this time around which actually make things substantially worse. Wage rates are being held down due to the unemployment and the easier access to world skilled labor markets. Real Estate prices are hopelessly still trending downward due to the foreclosure crisis and new excessive lending regulation.
The average person without the ability to actively control their income or borrow is caught in a significant cost inflation cycle. The end result is a steep downward trend in quality of Life.
1 comment:
My poor wife has been complaining for months about increasing food prices (and we shop at the cheap places). It really does seem to be the dirty little secret these days.
Post a Comment