The Return of STAGFLATION

[rgowka1]

A nice read and interesting reading:

http://www.gold-eagle.com/editorials_00/blanchard123000.html

any comments??

 

[daniel_m]

i don't think you'll find too many people worrying about inflation right now..

 

[rgowka1]

I donot know about u but my rent has gone up, my broadband connection has gone up ........ and the QQQ is stuck in 23-25 range.

Inflation creeps slowly, it's like a cancer, u donot even notice in the early stages.............

 

[daniel_m]

i didn't say inflation wasn't occurring, i said it's not at remotely a high enough level to become a concern. (stagflation requires HIGH inflation, not just SOME inflation)

since that article was written the 'all items' CPI has risen 4% (dec00-dec02, using the bureau of labor's statistics)

also, inflation does not always "creep slowly", it can also be quite rapid. but whether it's increase is rapid or slug like, we actually do notice (even in the "early stages" )