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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (43335)	5/21/2010 10:17:05 AM
From: TimF	Read Replies (1) \| Respond to of 71588

As long as unemployment stays above 9 percent, retailers' pricing power is nil. It's a situation that could last for years Perhaps at current capacity. However if unemployment above nine percent last for years (at least a bunch of years, rather than just a couple) than in many cases capacity will be reduced, and even with high unemployment it may not be such a buyers market. High unemployment and high inflation can exist at the same time, as we found out in the 70s. But inflation is unlikely to come on strong really quickly as long as unemployment is high. It would likely take some time to drift back to stagflation.