Cyberwanderer’s Blog

February 26, 2008

Stagflation hitting U.S.

Filed under: economy — cyberwanderer @ 2:09 pm
Tags: , , , , ,

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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  1. […] and the weird conflicting development of recession and inflation occurring at the same time (i.e. stagflation). Now that the food prices and perceived shortage has become a great concern and garnering headline […]

    Pingback by It’s the dollar, stupid « Cyberwanderer’s Blog — April 28, 2008 @ 11:53 pm | Reply

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    Comment by Smithk7 — May 24, 2014 @ 4:57 pm | Reply

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