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Bear Goggles

Bbc Uses The S Word

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First time I've seen it used in the mainstream media.

Bernanke voices inflation fears

Recent data showing weak growth and high prices has triggered fears that the US could now be suffering from "stagflation" - low growth coupled with high inflation.

It's all a far cry from the 'low inflation environment' we have been repeatedly told we're in.

Is the penny about to drop?

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Is the penny about to drop?

Ah, but that's America. We have Gordon 'Miracle' Brown to protect us from inflation in the UK.

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First time I've seen it used in the mainstream media.

Bernanke voices inflation fears

It's all a far cry from the 'low inflation environment' we have been repeatedly told we're in.

Is the penny about to drop?

The Times mentioned stagflation as well today: http://business.timesonline.co.uk/article/...2212196,00.html

But don't panic, from the article: "we should keep all this in perspective for the time being."

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SHOUTING BECAUSE I REALLY WANT AN ANSWER!

CAN STAGFLATION TURN INTO HYPERINFLATION MORE EASILY THAN OTHER TYPES OF EXISTING ECONOMIC CLIMATE?? I'M THINKING THAT STAGFLATION DENOTES INFLATION WITHOUT ACCOMPANYING IR RISES REQUIRED TO KEEP THE CURRENCY AFLOAT. A NATURAL PROGRESSION IS THEREFORE CURRENCY FALLS, PRECIPITATING MORE INFLATION... WHICH EVENTUALLY LEADS TO THE H WORD.

ANY TAKERS?

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I'M THINKING THAT STAGFLATION DENOTES INFLATION WITHOUT ACCOMPANYING IR RISES REQUIRED TO KEEP THE CURRENCY AFLOAT.

Stagflation occurs when you let inflationary pressures build up for years without raising interest rates: then you're forced to raise rates far higher than you otherwise would to destroy demand until the prices come under control. The end result is that you get economic slowdon and inflation at the same time, which is the worst of both worlds.

It's lucky that we haven't been running artificially low interest rates for years this time, isn't it?

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SHOUTING BECAUSE I REALLY WANT AN ANSWER!

CAN STAGFLATION TURN INTO HYPERINFLATION MORE EASILY THAN OTHER TYPES OF EXISTING ECONOMIC CLIMATE?? I'M THINKING THAT STAGFLATION DENOTES INFLATION WITHOUT ACCOMPANYING IR RISES REQUIRED TO KEEP THE CURRENCY AFLOAT. A NATURAL PROGRESSION IS THEREFORE CURRENCY FALLS, PRECIPITATING MORE INFLATION... WHICH EVENTUALLY LEADS TO THE H WORD.

ANY TAKERS?

I hate it when no-one really answers my question...

Bubb et al ? Is stagflation more susceptible to hyperinflation than a more balanced IR / CPI mix ?

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Bubb et al ? Is stagflation more susceptible to hyperinflation than a more balanced IR / CPI mix ?

By definition stagflation is part hyperinflation as the economy refuses to respond to the voodoo juice, hence more and more of it is needed with the consequent diminishing returns. Central banks will always opt for inflation, even hyperinflation instead of a deflationary spiral.

God, they've even done a remake of the Omen, Superman and Poseidon, it's the 1970's all over again! :)

Edited by BuyingBear

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Guest Bart of Darkness
God, they've even done a remake of the Omen, Superman and Poseidon, it's the 1970's all over again!

Just so long as the hairstyles don't come back again, otherwise I'm stuffed!

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Just so long as the hairstyles don't come back again, otherwise I'm stuffed!

I heard somebody moan about the cost of their haircut today, maybe cost effective mullets will make a come back?

BlairMullet.jpg

Edited by BuyingBear

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Ah, but that's America. We have Gordon 'Miracle' Brown to protect us from inflation in the UK.

I can't believe he has the gall to tell workers to keep inflation under control by not receiving above inflation pay rises, whilst ignoring the real cause of inflation - the bank of england.

When will we start barking up the RIGHT tree?

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Decision Economics' Sinai: Stagflation Risk, Bernanke Remarks
Jun. 6 (Bloomberg) -- Allen Sinai (right), chief economist at Decision Economics, talks with Bloomberg's Tom Keene about stagflation risk in the U.S. and Federal Reserve Chairman Ben S. Bernanke's comments yesterday about monetary policy. (Source: Bloomberg)

http://www.bloomberg.com/streams/podcast/Bloomberg_Economy_488464.mp3' rel="external nofollow">

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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