Cyberwanderer’s Blog

February 26, 2008

Stagflation hitting U.S.

Filed under: economy — cyberwanderer @ 2:09 pm
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Normally during hard economic times or recession, prices of oil go down. This time however, prices of oil continue to rise causing rise in prices. This cause a double whammy on people already suffering from mortgage foreclosures and hard economic times. So now we are seeing both inflation and recession happening at the same time (stagflation). This could cause a problem for U.S. government fiscal manager. They continue to inject cash to help the bank stave off problems caused by subprime mortgage. But this could only worsen the inflation and pose a risk of it getting out of control which could lead to hyperinflation (where prices skyrocket in a short period of time). This could happen while people are struggling financially.

Related Reuters Article: Weak confidence, PPI jump stoke stagflation fear

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Is Flaherty hiding a deficit already?

Filed under: Canada — cyberwanderer @ 1:40 pm
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h/t to David Graham. I have blog a bit about Flaherty and his past record in Ontario of selling property in an attempt to hide the deficit. David Graham in his blog “The World According to cdlu” points out a parallel move being done now by the federal government. They are selling government properties and leasing it back. Who in their right mind would sell property they own only to lease it? Unless you are badly in need of short term cash influx. Exactly the same thing happened in Ontario and we found out afterwards that they hidden billions dollar deficit from everyone.

My other related blog on Flaherty:

Flaherty war of words with Ontario (includes link to article about his shenanigan in Ontario)

Conservative fear mongering on budget

Flaherty gave $122,430 bidless contract to MacPhie

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