Has America entered into a dreaded stagflation?

[iamwhatiseem]

By it's definition I would say yes. I think a lot of folks agree.

Stagflation is one of the worst economic conditions a country can be in, and the United States just entered it.

It has actually been responsible for revolutions and uprisings in developed countries around the world. Most recently Greece, Spain and Portugal are experiencing severe doses of this dreaded economic condition. It is extraordinarily difficult to work through and often destroys wealth for generations.

Stagflation is simply defined by high unemployment, slow economic growth and high inflation. It makes inflationary and deflationary periods look like a walk in the park. Stagflation usually results in very long, severe recessions.

Read more: Ready or Not, Stagflation is Here | Fox Business

 

[Ariux]

Stagflation is caused by the government trying to "stimulate" (spend/print money) an economy out of recession. The government devalues the money without addressing the cause of the recession.

 

[iamwhatiseem]

Stagflation is caused by the government trying to "stimulate" (spend/print money) an economy out of recession. The government devalues the money without addressing the cause of the recession.

So I take it you agree with the article that we are entering into the stagflationary abyss?

 

[Nova78]

We have entered into the Obamaflation abyss of a failed presidents bullshit policies, this Country is in deep shit....

 

[EdwardBaiamonte]

Stagflation is caused by the government trying to "stimulate" (spend/print money) an economy out of recession. The government devalues the money without addressing the cause of the recession.

So I take it you agree with the article that we are entering into the stagflationary abyss?

at this point there is no inflation to speak of. Houses are down 35 % for example.

 

[TakeAStepBack]

No inflation? The money supply has increased over 9 trillion dollars in 11 years. Name a time in our history that matches up.

 

[Flopper]

By it's definition I would say yes. I think a lot of folks agree.

Stagflation is one of the worst economic conditions a country can be in, and the United States just entered it.

It has actually been responsible for revolutions and uprisings in developed countries around the world. Most recently Greece, Spain and Portugal are experiencing severe doses of this dreaded economic condition. It is extraordinarily difficult to work through and often destroys wealth for generations.

Stagflation is simply defined by high unemployment, slow economic growth and high inflation. It makes inflationary and deflationary periods look like a walk in the park. Stagflation usually results in very long, severe recessions.

Read more: Ready or Not, Stagflation is Here | Fox Business

The inflation rate currently stands at 2.3%, lowest point this year and the average for the last 10 years is 2.6%. The highest rate was in 2008 at 3.85% and the lowest in 2009 was -.34% Please explain why you think we are entering a period of stagflation with inflation rates so low and the rates trending downward. The last stagflation in the US was in 1980 with inflation reaching 13.58% and unemployment at 7.5%.

http://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx

 

[Flopper]

By it's definition I would say yes. I think a lot of folks agree.

Stagflation is one of the worst economic conditions a country can be in, and the United States just entered it.

It has actually been responsible for revolutions and uprisings in developed countries around the world. Most recently Greece, Spain and Portugal are experiencing severe doses of this dreaded economic condition. It is extraordinarily difficult to work through and often destroys wealth for generations.

Stagflation is simply defined by high unemployment, slow economic growth and high inflation. It makes inflationary and deflationary periods look like a walk in the park. Stagflation usually results in very long, severe recessions.

Read more: Ready or Not, Stagflation is Here | Fox Business

The inflation rate currently stands at 2.3%, lowest point this year and the average for the last 10 years is 2.6%. The highest rate was in 2008 at 3.85% and the lowest in 2009 was -.34% Please explain why you think we are entering a period of stagflation with inflation rates so low and the rates trending downward. The last stagflation in the US was in 1980 with inflation reaching 13.58% and unemployment at 7.5%.

http://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx

 

[TakeAStepBack]

Price increase is a result of inflation, which is really increases in the money supply. Welcome to econ 95

 

[Wiseacre]

So, maybe it's not stagflation but just stagnation. Still not good, and eventually all that extra money will result in inflation.

 

[Middleoftheroad]

No inflation? The money supply has increased over 9 trillion dollars in 11 years. Name a time in our history that matches up.

As a percentage? Umm, the 60's, 70's 80's and 90's were all higher.

File:Changes in US Money supply.svg - Wikipedia, the free encyclopedia

 

[Flopper]

Price increase is a result of inflation, which is really increases in the money supply. Welcome to econ 95

The Money Supply, M1,M2,&M3 has been falling in 2012. M1 is only slightly higher than in Jan 2009; M2 and M3 are both lower.

Money Supply Charts

 

[Flopper]

No inflation? The money supply has increased over 9 trillion dollars in 11 years. Name a time in our history that matches up.

As a percentage? Umm, the 60's, 70's 80's and 90's were all higher.

File:Changes in US Money supply.svg - Wikipedia, the free encyclopedia

The total money supply has increased but the rate of increase has remained nearly the same for 20 years.
http://upload.wikimedia.org/wikipedia/commons/c/c4/Components_of_US_Money_supply.svg

 

[iamwhatiseem]

By it's definition I would say yes. I think a lot of folks agree.

Stagflation is one of the worst economic conditions a country can be in, and the United States just entered it.

It has actually been responsible for revolutions and uprisings in developed countries around the world. Most recently Greece, Spain and Portugal are experiencing severe doses of this dreaded economic condition. It is extraordinarily difficult to work through and often destroys wealth for generations.

Stagflation is simply defined by high unemployment, slow economic growth and high inflation. It makes inflationary and deflationary periods look like a walk in the park. Stagflation usually results in very long, severe recessions.

Read more: Ready or Not, Stagflation is Here | Fox Business

The inflation rate currently stands at 2.3%, lowest point this year and the average for the last 10 years is 2.6%. The highest rate was in 2008 at 3.85% and the lowest in 2009 was -.34% Please explain why you think we are entering a period of stagflation with inflation rates so low and the rates trending downward. The last stagflation in the US was in 1980 with inflation reaching 13.58% and unemployment at 7.5%.

http://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx

Which is all horeshit.
The government grossly underestimates the cost of living. As the article states, if you remove the biases inflation is near 7%.
The method in which the government measures prices is flawed to say the least. If you are smart enough to be aware of economic conditions - you are also smart enough to know what I am saying here is true.
So why are you repeating a flawed figure?

 

[Dont Taz Me Bro]

So, maybe it's not stagflation but just stagnation. Still not good, and eventually all that extra money will result in inflation.

Yes, stagnation is the word I would use.

 

[Dont Taz Me Bro]

The inflation rate currently stands at 2.3%, lowest point this year and the average for the last 10 years is 2.6%. The highest rate was in 2008 at 3.85% and the lowest in 2009 was -.34% Please explain why you think we are entering a period of stagflation with inflation rates so low and the rates trending downward. The last stagflation in the US was in 1980 with inflation reaching 13.58% and unemployment at 7.5%.

http://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx

Which is all horeshit.
The government grossly underestimates the cost of living. As the article states, if you remove the biases inflation is near 7%.
The method in which the government measures prices is flawed to say the least. If you are smart enough to be aware of economic conditions - you are also smart enough to know what I am saying here is true.
So why are you repeating a flawed figure?

The Obama apologists will give him cover when ever they can.

 

[iamwhatiseem]

The inflation rate currently stands at 2.3%, lowest point this year and the average for the last 10 years is 2.6%. The highest rate was in 2008 at 3.85% and the lowest in 2009 was -.34% Please explain why you think we are entering a period of stagflation with inflation rates so low and the rates trending downward. The last stagflation in the US was in 1980 with inflation reaching 13.58% and unemployment at 7.5%.

http://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx

Which is all horeshit.
The government grossly underestimates the cost of living. As the article states, if you remove the biases inflation is near 7%.
The method in which the government measures prices is flawed to say the least. If you are smart enough to be aware of economic conditions - you are also smart enough to know what I am saying here is true.
So why are you repeating a flawed figure?

The Obama apologists will give him cover when ever they can.

Apparently. That or he blindly believes government reports.
An example of how the government measures prices:

Average cost of a 6 pack of beer in one year is $5.00
One year later the average price is $5.75....a 15% price increase.
But everyone is switching to cheaper brands where the average price is $5.10....the government counts this as only a 2% inflationary rate because they measure not the price of items, but just the items people are buying.
A very, very flawed method that gives favorable reporting.

 

[California Girl]

The inflation rate currently stands at 2.3%, lowest point this year and the average for the last 10 years is 2.6%. The highest rate was in 2008 at 3.85% and the lowest in 2009 was -.34% Please explain why you think we are entering a period of stagflation with inflation rates so low and the rates trending downward. The last stagflation in the US was in 1980 with inflation reaching 13.58% and unemployment at 7.5%.

http://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx

Which is all horeshit.
The government grossly underestimates the cost of living. As the article states, if you remove the biases inflation is near 7%.
The method in which the government measures prices is flawed to say the least. If you are smart enough to be aware of economic conditions - you are also smart enough to know what I am saying here is true.
So why are you repeating a flawed figure?

The Obama apologists will give him cover when ever they can.

And they would, to some extent, be right. It took bi-partisan corruption and bad decision making to get us here.... it ain't Obama's fault... but... he could have done more to change our course... which would have taken a bi-partisan effort to achieve. Unfortunately, for us, our politicians care more about themselves than working in the best interests of the country.

 

[pinqy]

Which is all horeshit.
The government grossly underestimates the cost of living. As the article states, if you remove the biases inflation is near 7%.
The method in which the government measures prices is flawed to say the least.

So, I know a good deal about price indexes, please explain what you think
the flaws and biases are and what you would consider the correct methodology.

 

[California Girl]

Which is all horeshit.
The government grossly underestimates the cost of living. As the article states, if you remove the biases inflation is near 7%.
The method in which the government measures prices is flawed to say the least. If you are smart enough to be aware of economic conditions - you are also smart enough to know what I am saying here is true.
So why are you repeating a flawed figure?

The Obama apologists will give him cover when ever they can.

Apparently. That or he blindly believes government reports.
An example of how the government measures prices:

Average cost of a 6 pack of beer in one year is $5.00
One year later the average price is $5.75....a 15% price increase.
But everyone is switching to cheaper brands where the average price is $5.10....the government counts this as only a 2% inflationary rate because they measure not the price of items, but just the items people are buying.
A very, very flawed method that gives favorable reporting.

I don't see how anyone can blame Obama for that... it's not like the previous administration was any better.

It would be helpful if Americans could put the party crap aside and focus on how we fix it rather than ranting about what the other side did. That might be fun, but it doesn't solve the problem.