June 2009 - Stagflation has started.

[touchring]

My view is that what we are seeing now are the green shoots -- of stagflation - falling prices that businesses can charge, falling wages, falling real estate prices, but rising prices in commodities and capital.

This will be Bernanke's nightmare. Rising unemployment coupled, with rising cost of living and mortgage rates as China goes on a resource grab.

[ThePythonicCow]

Re: June 2009 - Stagflation has started.

My view is that what we are seeing now are the green shoots -- of stagflation - falling prices that businesses can charge, falling wages, falling real estate prices, but rising prices in commodities and capital.

This will be Bernanke's nightmare. Rising unemployment coupled, with rising cost of living and mortgage rates as China goes on a resource grab.

Well - yeah.

One way or anther the living standard of the average American must fall to be roughly equal to the productivity of the average American (or less, if you consider the debt to be paid down.) I don't count selling NINJA loans in "productivity." This means wages down, prices for essentials up, markets for non-essentials dead, or some variant of that. The theoretical alternative would be a dramatic increase in the real productivity of America -- that ain't going to happen soon.

[ricket]

Re: June 2009 - Stagflation has started.

Well - yeah.

One way or anther the living standard of the average American must fall to be roughly equal to the productivity of the average American (or less, if you consider the debt to be paid down.) I don't count selling NINJA loans in "productivity." This means wages down, prices for essentials up, markets for non-essentials dead, or some variant of that. The theoretical alternative would be a dramatic increase in the real productivity of America -- that ain't going to happen soon.

Im going to call it now. The only thing that will save America is a revolutionary new invention. It will be the time machine.

LOL. I need to stop drinking so much...

[Jay]

Re: June 2009 - Stagflation has started.

Im going to call it now. The only thing that will save America is a revolutionary new invention. It will be the time machine.

LOL. I need to stop drinking so much...

So, we need one of these:


but it looks like we're getting one of these: