Feels like a period of consumables and services inflation combined with asset deflation.
Bonds scream recession and deflation. Gold screams inflation. And the data read recession.
But hey, what do I know. Ben Bernanke, like Alan Greenspan before him, are gods and intellectual giants that should not be doubted, who do whatever is best for the American people regardless of the impact on bankers, incumbent politicians and Wall Street.
WASHINGTON - Federal Reserve Chairman Ben Bernanke told Congress Thursday that the nation is "not anywhere near" the dangerous stagflation situation that prevailed in the 1970s.
With the economy slowing and inflation rising, fears have grown that the country could be headed for the dreaded twin evils of stagnant growth and rising prices known as "stagflation."
"I don't anticipate stagflation," Bernanke told the Senate Banking Committee.
February 28, 2008
Posted by blogger at 2/28/2008