Stalin
Well-Known Member
- Joined
- Apr 4, 2008
- Messages
- 2,027
lengthy article on modern economics
Most investors have a very hard time understanding the concept of inflation and often mistake stagflation for deflation, wondering why people are spending more on less. They only see prices of their daily grocery spending, not disposable income, and certainly not economic growth and unemployment. Looking back at the 1970s, prices rose sharply following the OPEC oil price hikes, but the sharp rise in energy costs crowded out other forms of spending. This resulted in rising prices that had nothing to do with a speculative economic expansion but rather a deflationary contraction. This phenomenon, called stagflation, occurred with rising prices and declining economic growth.
www.zerohedge.com
comrade stalin
wall street
Most investors have a very hard time understanding the concept of inflation and often mistake stagflation for deflation, wondering why people are spending more on less. They only see prices of their daily grocery spending, not disposable income, and certainly not economic growth and unemployment. Looking back at the 1970s, prices rose sharply following the OPEC oil price hikes, but the sharp rise in energy costs crowded out other forms of spending. This resulted in rising prices that had nothing to do with a speculative economic expansion but rather a deflationary contraction. This phenomenon, called stagflation, occurred with rising prices and declining economic growth.
All Roads Lead To Stagflation | ZeroHedge
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com
comrade stalin
wall street
