Monday, February 25, 2008

I always think in terms of Inflation and Deflation.....but that only talks about prices.....Recession, Depression talk about Economic Conditiions.....



But the term "Stagflation" seems to talk about BOTH conditions of prices (inflation) and Economic Growth (Stagnation)

I never think of Stagflation as a possibility.....though i remember it being the norm back a few years ago....was that maybe 1974?

We had rising prices and falling j0bs and economic output. This seems quite possible to me now because I see the dollar being devalued (causing rising prices) which will then cause us to buy less. (as we see happening with rising gas prices right now)

Our economic output is measured by our purchases.....and 70% of that is personal consumption....so I suspect economic output will be going down.

What to do with investment money.....hmmm....I don't have a crystal ball. I sure wish I did.

Interesting stuff......next, I am going to look at the "Big Mac Index" of economic vitality, and then the "Big Golden Arches Theory of Conflict Prevention". (simply stated that "No two countries that both had McDonald's had fought a war against each other since each got its McDonald's".)

1 Comments:

Anonymous QUALITY STOCKS UNDER 4 DOLLARS said...

Money is the root of all evil.

4:56 PM EST  

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