Friday, June 16, 2006

Stagflation Talk Increasing UPDATE

Everybody who makes less than $100,000/year is already hurting. The hurt is about to be spread around, it seems.

Daily Kos: Stagflation Talk Increasing UPDATE:

"Stagflation is an economic condition of increasing inflation and slowing economic growth. This situation places interest rate policy makers in a quandary. If they raise rates to slow inflation, the economy will continue to slow, possibly leading to a recession. If they let inflation run, they run the risk of letting inflation getting out of control, possibly leading to early stage hyper-inflation. In other words, no matter what the Fed does, they are bound to inflict pain on someone.
Talk of stagflation has increased over the last few months. Below are the latest entries in the dialog."

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