Double Dip: A Second Wave Of Recession In The Works?

Thu, 9 Apr 2009

Paul R. La Monica of CNNMoney talks about the possibility of a second, inflation-induced recession in 2010.

La Monica also writes in his blog:
"Critics of the Fed contend that it is printing money to pay for these programs, which also can spur inflation down the road. And some fear the Fed would be forced to then raise rates quickly to nip inflation in the bud, which could then cause another contraction.

'Great Inflation may be upon us as both fiscal and monetary policies are forceful, but ineffective,' wrote Axel Merk, president of Merk Mutual Funds, a Palo Alto, Calif.-based money manager specializing in currency investments, in a note to clients Tuesday.

'The Fed has no exit strategy that is viable -- it seems impossible to us the Fed could tighten monetary policy if and when inflation breaks out without causing yet another collapse in economic spending,' Merk added."

Category:

News & Politics

Tags:

• stagflation
• inflation
• stagnation
• deflation
• depression
• recession
• economy
• financial
• GDP
• CPI
• economics
• gold
• silver
• oil
• dollar
• Federal
• Reserve
• double
• dip

[sandspoint]

I just paid 5 bucks for an ice cream on south beach!! geesh!

[4sanken4seerer]

THIS IS ALL ON PERPOSE, IT BREAK U AND MAKE U DIPPENDENT ON THE GOV. THAT WAY ITS EASZER TO CONTROL PPL INTO DOING WHAT IT WANT LIKE INVADE IRAN.ONCE PPL HAVE NO JOB TO GO TOO.THEY WILL JOIN THE ARMY AND BE SLAVES OF THE ELITE.I'D RATHER MOVE INTO THE MOUNTAINS INSTEAD OF JOINING AN ARMY OF EVIL

[dreidwaxhaw]

This is why Obama needs to get on the Democratic controlled Congress for not helping him fix our economy and for being whimps. It's one thing to be diplomatic, but we aren't to be appeasers of the opposing party in the minority. The Republicans, sad to say, get together to create policies and they happen, even though I, myself, am against their politics. Nevertheless, my side does not band together because they can't agree on anything, but ride on the head cheif's coat tail. I'm sick of it, too!

[joe035]

@rlmccullough I haven't seen a recovery either.

[rlmccullough]

We have never had a recovery to double dip from,,,,,,

[kennyembry]

Yeah, great explanation but it's now, July '10 and we've dived, not dipped, dipped just doesn't cut the mustard to coin what's happening.

[pretorious700]

In order to "double dip", one would have to assume their was a "recovery"....There wasn't, it was all media and government bullshit. Anyone with 2 brain cells and one eye that works could see that.

[LesPaulCustom79]

Congress has double dipped so much that the sausa bowl is full of slobber.

[LesPaulCustom79]

The economy is going to double dip, because the Obama adminsitration is a double dip x10 and Congress is a bunch of double dipshits with shit for brains.

[68noraa]

US military budget at US$54billion @year?