I like reading the capitalist press. No not the MSM, the business press. They tell it like it is. Like who the new Federal Reserve Chairman in the U.S.; Ben Bernanke, really represents. In this throw away line from Business Week; "Is the Fed chieftain simply failing his own class on clear messages?"
There ya go. We know which class they are talking about too, the ruling class.
And his message...the dreaded word that strikes fear into the very heart of capitalists....Revolution? No. Stagflation!
Something Monthly Review has said was inevitable under the current market dominance of the State and Monopoly Capital in the U.S.
Fears of stagflation leave Dow battered
Bernanke's comments unnerved investors because they raise fears of stagflation, an environment of rising prices and stagnating economic growth. His tough talk on inflation also increased concerns that the Fed will raise its target for short-term interest rates, currently 5%, again at the end of June, dashing hopes it would pause in its two-year-long rate-tightening campaign.Bernanke's comments unnerved investors because they raise fears of stagflation, an environment of rising prices and stagnating economic growth. His tough talk on inflation also increased concerns that the Fed will raise its target for short-term interest rates, currently 5%, again at the end of June, dashing hopes it would pause in its two-year-long rate-tightening campaign.
Stagflation fears stalk UK industry
WILL HIGH OIL BRING STAGFLATION?
Tuesday, May 09, 2006 - FreeMarketNews.com
Will rising oil prices bring stagflation? Stagflation is the combination of high inflation and high unemployment/recession, a phenomenon that Keynesian economists long thought to be impossible—until it happened in the UK and the US in the ‘60s and ‘70s. -Jeff Vail
Stagflation Here We Come!
May 15, 2006
For the foreseeable future I believe we are looking directly at Stagflation.
Stagflation is an Inflationary environment coupled with very low rates of growth.
Here’s why I believe we are facing Stagflation:
The US economy is a paper tiger. Almost everyone I know in the US is involved someway or another in Real Estate. And that means Debt!
Now Debt is ok provided the assets behind the debt don’t Fall in price and precipitate a massive Liquidation.
So the Fed’s job is easy. Print money ‘til the Cows come Home but don’t ever allow asset prices to drop.
There’s one problem ofcourse - Gold.
That pesky metal is so sensitive to an increase in the money supply. Whenever it rises it scares the Dickens out of the public into believing that Price inflation will break out any moment.
To maintain credibility the Fed bangs its fist on the table and says they’ll raise interest rates to snuff out any sign of inflation.
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