Stagflation or Inflation equals depression for many!

Former Federal Reserve Chairman Alan Greenspan

Former Fed Chairman Alan Greenspan said on ABC'S "This Week with George Stephanopoulus" we are beginning to get not stagflation, but early symptoms of it."  Stagflation is growth beginning to stall, while food and energy prices soar.  Food prices have obviously gone up do the cost of fuel.  But, wheat has recently gone up $10 per bushel certainly indicating the cost of food is heading up outside of the cost of fuel.  Mr. Greenspan, how can there be a symptom of something but not actually have the cause of the symptom?  "...Beginning to get NOT stagflation but early symptoms of it..."  Huh???  Okay I get it, you're picking your words carefully and not wanting cause fear in the hearts of the people paying attention to what you say to avoid them from making financial moves out of fear.   When I hear the former Fed Chairman speak about "stagflation" I hear inflation and recession coming in the not too distant future.  Recession, for the "majority" population is typically depression for the rest of us.  While the candidates are talking nonsense about Roe VS Wade, what religion they practice or some other issue that will not affect you tomorrow, the economy is in shambles!!  They really should be talking about the economy and how they can repair it, and repairing your wallet.  If you're not thinking about the economy you better take notice and pray the candidates start to focus on what's real and not some fantasies about whether they back Israel or a free Palestinian state. 

Comments

[Brandon]

If an economy is based on consumers spending borrowed money and is run by people who would privatize the fire dept if you let them the bottoms going to fall out eventually.

[Ensayn]

Brandon you are so right! And the bottom is getting a lot weaker as go. The news is reporting that this Christmas season consumers are not spending as was hoped for. So we will see what '08 has in store on the economic front, and how the presidential candidates will respond.