Cheap dollars are sowing the seeds of the next world crisis [US may face stagflation]

telegraph.co.uk ^ | 2009-09-12

[rabscuttle385]

[rabscuttle385]

*Ping!*

[null and void]

Stagflation.

Not since the Carter administration...

[rabscuttle385]

At the rate things are going, it looks like Carter may have been a piker compared to Obama.

[Tempest]

No, no, the disaster has been avoided and the economy is in full bloom. Recovery is right around the corner.

Doesn’t anyone listen to what President Ohstupid and his media minions say?

[null and void]

Yeah. Carter’s gotta be the happiest person on earth.

He isn’t the worst president ever anymore...

[jpsb]

Keep sending idoits to D.C. and this is what you get. LBJ, Nixon, Carter, Clinton, Bush and now Obama is no way to run a country.

[TigerLikesRooster]

So true. Obama save Jimmy Carter. Now at last, Jimmy could rest in peace.:-)

[FormerACLUmember]

Obama and his band of America-hating communists seek only the total economic and moral destruction of the US, in order to create a permanent impoverished underclass beholden to a Permanent Ruling Party.

[FormerACLUmember]

The Second Great Depression is coming......

[TigerLikesRooster]

Hmm.. China can take over all U.S. business as the collateral for T-bills. Nationalizing the entire production facilities and other businesses U.S. set up in China could cover much of expected loss in T-bills and dollar holdings.

[Nathan Zachary]

"So even if the Western world manages to fix its banking system, the Fed's money printing could well be stoking up the next financial crisis. The dollar carry-trade. You heard it here first."

Like heck we did. YOU heard it at free Republic first. We've been warning people for months.

[Nathan Zachary]

"No, no, the disaster has been avoided and the economy is in full bloom. Recovery is right around the corner."

Right I forgot about that. Silly me for looking at silly numbers, national debt, out of control government spending, plumeting GNP, and a sinking dollar. Everything will be ok because Obama said so.

[Nathan Zachary]

"The Second Great Depression is coming......"

You are already in it. It just takes a little while for the river to dry up after the source feeding it is cut off.

People haven't realized yet that the price of gold isn't going up, it's the value of our dollar that is going down. That holds true for all commodity markets. It isn't a commodity market recovery, our dollar is buying less.

[Nathan Zachary]

Hmm.. China can take over all U.S. business as the collateral for T-bills. Nationalizing the entire production facilities and other businesses U.S. set up in China could cover much of expected loss in T-bills and dollar holdings.

Maybe government owned "US" businesses, But Obama can't sell private businesses- yet. Except for GM and Chrysler.

[dr_lew]

The Second Great Depression is coming......

He saw a vision of himself descending from one circle of the inferno to the next, from a darkness full of wind and hail to an abyss of stinking mud. - The Gioconda Smile by Aldous Huxley

Just a little something to cheer everybody up.

[timetostand]

The way I look at it is you have three commodity choices and all are doing fairly well - rose colored glasses, Reynolds wrap, Or MREs s/

[Vet_6780]

Nonsense the velocity of money is plunging at an accelerating rate and deflationary depression is knocking.

Inflate or Die.

[Claud]

Question for the economics gurus out there.

What does stagflation mean for the average household out there? Price of everything goes up? Do wages follow or do they stay flat? (for those lucky enough to still have jobs I guess).

Better to use cash now to pay off (mortgage) debt as furiously as possible, or hang on to money in the hopes that interest rates spike and we can earn 10% on it while servicing 6%-7% debt?

[mdmathis6]

I think I’ll go for the MRE’s...can’t eat paper money and metal gold!