Warren Buffett On Stagflation

Wed, 25 Jun 2008

NOTE: THIS IS A RETROSPECTIVE (HISTORICAL) POST

Billionaire investor Warren Buffett voiced his concerns about "stagflation," or slowing in the U.S. economy while inflation accelerates.
"We're right in the middle of it right now,'' said Buffett, chairman of Omaha, Nebraska-based Berkshire Hathaway Inc., in an interview on Bloomberg Television during the commodities boom of 2008. "I think the `flation' part will heat up and I think the `stag' part will get worse.''

These two predictions were made by the Sage of Omaha about ten months ago. We should be glad only one of his two predictions ("the `stag' part will get worse") became reality - at least at the time this video was posted here, inflation has eased significantly from mid-2008 levels. Nonetheless, it is my conviction a second, more severe bout of inflation/stagflation is just lurking around the corner, so I'm keeping my fingers crossed for the other prediction.

My apologies for the mediocre audio quality.

Category:

News & Politics

Tags:

• stagflation
• inflation
• stagnation
• deflation
• economy
• financial
• GDP
• CPI
• economics
• gold
• oil
• dollar
• Federal Reserve
• Warren Buffett

[mrblack61]

@82snowball stagflation? Because wages stay the same or go lower and prices of goods and services rise. A double whamey!

[82snowball]

why is it a problem

[Jabitout]

it is inevitable