Dear Ground Pounder,
YIKES! I looked up stagflation....
Stagflation is a period of inflation combined with stagnation (that is, slow economic growth and rising unemployment), generally including recession.[1] The portmanteau term "stagflation" is generally attributed to British Conservative MP and later Chancellor of the Exchequer Iain Macleod, who coined the term in a speech to Parliament in 1965.[2][3][4]
Economists have identified two principal contributing causes of stagflation. First, stagflation can result when an economy is slowed by an unfavorable supply shock, such as an increase in the price of oil in an oil importing country, which tends to raise prices at the same time that it slows the economy by making production less profitable.[5] Second, both stagnation and inflation can result from inappropriate macroeconomic policies. For example, central banks can cause inflation by permitting excessive growth of the money supply, and the government can cause stagnation by excessive regulation of goods markets and labor markets. When combined, the presence of both these factors is more than sufficient to launch an era of stagflation. For example, policies which promote growth in the money supply to allow consumers to afford higher priced oil contribute as a cause for runaway inflation, even if implemented to fight stagnation or recessions. The global stagflation of the 1970s is often blamed on both causes: it was started by a huge rise in oil prices, but then continued as central banks used excessively stimulative monetary policy to try to avoid the resulting recession and stagnation, causing a runaway wage-price spiral.
en.wikipedia.org
Wikipedia is great!
Anyway that description is exactly the situation today! I've been under the bus too long....
To be honest I have been crap at trying to play one currency against another so I need to find another way to stay ahead or at least keep my head aboove water.....
>With our last stagflation we we getting say 21% to 15% interest rates from 1 month to 30 years at one time
Can you explain that a bit better for this bozo? I didn't get what you were saying?
Also your comments about the panic in the general markets causing them to "sell everything" for cash. Cash that is needed for various reasons. We goldbugs have been waiting for the "big disconnect" to happen where a big drop in the gen markets does not drag down PM stocks as well....and that happened today....but 1 day does not a trend make so we will see....but we could be seeing JQP starting to move his money into PMs?...
So I hear ya on the cash, gold and RE cycle....I just hope I can get two out of three...
I'll take the first watch....
Wayne |
