Bear Goggles Posted June 5, 2006 Share Posted June 5, 2006 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? Quote Link to comment Share on other sites More sharing options...
MarkG Posted June 5, 2006 Share Posted June 5, 2006 Is the penny about to drop? Ah, but that's America. We have Gordon 'Miracle' Brown to protect us from inflation in the UK. Quote Link to comment Share on other sites More sharing options...
non-FTBer Posted June 6, 2006 Share Posted June 6, 2006 Ah, but that's America. We have Gordon 'Miracle' Brown to protect us from inflation in the UK. And his jowls are like a shield of steel Quote Link to comment Share on other sites More sharing options...
FTBagain Posted June 6, 2006 Share Posted June 6, 2006 "Is the penny about to drop?" IF it does, it may make a tinny, hollow sound, reflective of its drop in value Quote Link to comment Share on other sites More sharing options...
LargelyIgnorant Posted June 6, 2006 Share Posted June 6, 2006 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." Quote Link to comment Share on other sites More sharing options...
Sisyphus Posted June 6, 2006 Share Posted June 6, 2006 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." "If you're going to panic, panic early." - Anon. Quote Link to comment Share on other sites More sharing options...
tahoma Posted June 6, 2006 Share Posted June 6, 2006 Bloomberg used the S word twice - twice - in reference to Nationwide's figures early last week. I hear hooves in the distance... Quote Link to comment Share on other sites More sharing options...
AvidFan Posted June 6, 2006 Share Posted June 6, 2006 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? Quote Link to comment Share on other sites More sharing options...
MarkG Posted June 6, 2006 Share Posted June 6, 2006 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? Quote Link to comment Share on other sites More sharing options...
RichB Posted June 6, 2006 Share Posted June 6, 2006 Ah... but isn't demand dropping on it's own? I mean, aren't we just running out of tat to splurge on? Quote Link to comment Share on other sites More sharing options...
AvidFan Posted June 6, 2006 Share Posted June 6, 2006 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 ? Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted June 6, 2006 Share Posted June 6, 2006 (edited) 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 June 6, 2006 by BuyingBear Quote Link to comment Share on other sites More sharing options...
Robbrent Posted June 6, 2006 Share Posted June 6, 2006 Try this http://en.wikipedia.org/wiki/Stagflation Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted June 6, 2006 Share Posted June 6, 2006 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! Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted June 6, 2006 Share Posted June 6, 2006 (edited) 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? Edited June 6, 2006 by BuyingBear Quote Link to comment Share on other sites More sharing options...
Adam Posted June 6, 2006 Share Posted June 6, 2006 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? Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted June 6, 2006 Share Posted June 6, 2006 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) Listen http://www.bloomberg.com/streams/podcast/Bloomberg_Economy_488464.mp3' rel="external nofollow"> Quote Link to comment Share on other sites More sharing options...
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