Stagflation on the horizon

More at http://therealnews.com/c.php?c=080601YT
Dean Baker says this is the worst time for working families since the Great Depression

Category:

News & Politics

Tags:

• therealnews
• politics media
• economy
• stagflation
• inflation
• Matt Palevsky

[lastnymleft]

The Fed has been flooding the world with USD to try to prop up an unsustainable US economy. Just in the last 4 years, a period of slow/neutral/negative growth, they've created $4 TRILLION out of thin air. Every dollar they create by fiat makes every dollar already in existence worth less. Hence more are required to buy the same amount of goods priced in USD. The dollars flood through Wall St, then the banks, creating malinvestment (ie bubbles), and finally to consumers as oil/food etc. inflation

[lastnymleft]

This thread's funny!

Anyway, when the shit hits the fan, remember to point the finger of blame at the real cause: the Federal Reserve and their fiat money system.

[zamkam]

In this clip (at 1:05) he says: "this is really bad news, really bad times, probably the worst financial period for most families since the great depression".

On another clip (watch?v=UfR_gPzTMnk at 0:15) he says: "running around talking about the great depression is not serious, it's just silly scare tactics".

[WadeBlazingame34]

Dean Baker is the man.

[YouGotTheWord]

Needs to shave, I thought he was some bum off the streets.

[boing3887]

i would respect this guy's opinion if i were you (by 'you' i mean the skeptics). he's not an austrian-economics guy, but he was the first person to point out the housing bubble - in splendid isolation. just b/c he doesn't conform to some ideology doesn't mean that he's just to be dismissed. he was right where everyone was wrong!

[zurapDOR]

You've damned right, this is deflation, not stagflation..

[jjrglobal]

Anyone that has stepped foot in a grocery store knows that the CPI is total horseshit. Inflation 4 1/2 my ass. More like 14 1/2 would be more realistic. The reason for the seventies stagflation was Vietnam costs. The war in Iraq will come back to haunt us too and we aren't in good financial shape already. Cut spending, stop the bailouts.

[RhXz47rc]

The US economy is already in stagflation.

They devalued the currency (that's the dollar, kids) on purpose.

off topic, but incredibly important:

Search for "nutricide" here on YouTube.

[samdonuge]

funny how he says 'meat' and they show a picture of 'spam'

[johnlouisville]

C'mon RealNews....Do you think the official inflation rate is REALLY 4.5%? This is nothing but propaganda from the US Government. The government has been using creative methodologies to hide the real unemployment and inflation statistics for decades now. As a network that supposedly exists to challenge our corporate/oligarchy government and their enablers in the mainstream media...I'm surprised that this statistic would be accepted/quoted at face value.

[Visfen]

Free markets only work if the country in question have a working justice system, the integrity and power to impose those laws and have an already established industry. That is why countries like Taiwan and China are doing so much better than African countries, because they've managed to first build a self-sustaining economy before they started competing on an international level.

Free markets only work if there is sufficient regulation. Deregulation is as hurtful as too much regulation.