Friday, May 27, 2016

The Federal Reserve Could Be 
Blindsided By 'Stagflation'
CNBC article highlights growing stagflation in the U.S.: rising inflation that is coupled with a high unemployment rate & low to negative economic growth .. "The government's effort to engender viable growth through debt and inflation is virtually guaranteed to fail. It has tried to repair an asset bubble and debt saturated economy by increasing both conditions. But, the real medicine the economy needs is to allow the free market to set interest rates much higher, which would deleverage the economy and allow the normalization of asset prices to income ratios .. Will the economy suffer through a 70's-style stagflation before the markets and economy fall into a steep and unprecedented contraction, or will it simply implode into the inevitable deflationary collapse straight away."
LINK HERE to the article

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