Quote:
Originally Posted by cykoe6
There is plenty of blame on both sides of the aisle for getting us into this mess. That is not the current issue however. The current issue is Obama's disastrous, wasteful spending spree which is a perfect recipe for stagflation.
In a couple of years as the deficits balloon to almost unimaginable amounts, interest rates will need to rise to attract more buyers for treasury bonds to fund the massive deficits (already the Chinese are balking). At the same time the value of the Dollar will fall and inflation will increase as the money supply increases.
These are same mistakes made in the 70's which led to stagflation. We have managed to elect Jimmy Carter all over again. It is going to be a long 4 years.
|
I think stagflation is more an issue with fixing the banks. If the banks can get back to normal it will fix some of the unemployment issues.
I'd also point out that while we're seeing some higher inflation numbers, it's nowhere remotely close to what we saw under Carter. The Fed and the Treasury have handled this economic crisis much better than it was handled back then and I don't think it's going to be as much a factor.