Report inflation the old way, the correct way, and real GDP went negative Q107, bounced in Q307 and will be negative til about Q308. With the healthcare inusrance companies reporting higher costs, I expect the CPI to be tinkered with to mute rising these rising costs.
Why is everyone scared of a recession. People should understand that you have to have recessions. You can only binge so much before you purge.
Report inflation the old way (pre 1980) and we had 11.3% inflation last quarter (source: Michael Shedlock). That includes things like food and gas. This is assuming you eat and drive however. The Federal Government assumes no one eats or drives. We are in stagflation people. It is already here. Economy.com, Lehman Bros, and myself say its been here since January at least. Look around? Car sales are tanking. Even electronics sales are tanking. Jobs are experiencing negative growth, etc. Its here now, but if it makes you feel better, you can wait until the government declares it 6 months after the fact like they always do.
We are in a Recession, OK So what... Nothing really seems to be changing all that much. People don;t have as much disposable income.......Get a second job. It is really a bunch of crap. we go in and out of these cycles all the time. The only way for the economy to succeed is for all Americans to call their respective representatives in Washington and tell them to Back OFF!!! They are too stupid to fix any problems, real or imaginary. As long as politicians, Republican or Demoncrat, leave things alone we will come out fine.
"TIMES" business page tomorrow will have an article that states " WE ARE IN A RECESSION. It's on their website now. Of course, the "COLLECTIVE" will deny.
BOCA RATON â A crowd of more than 500 people waiting for hours this morning for housing voucher applications were dispersed by police in riot gear at the Boca Raton Housing Authority when the applications ran out sooner than expected. _______ Just a small glimps into the future of many SHeeople who will soon join the PROVERTY ranks. Recession? WHAT RECESSION?
What happens when in recession? aggregrate demand falls down; prices come down. Auto dealerships get desperate, etc. Our food and energy woes are the result of failed energy and ethanol policy, not money supply. ... Wondering what would happen to food prices if next year we decided to stop using 28% of our food as gasoline? I can tell you one thing... the world already is producing a lot more gasoline than it needs. Makes sense that no one was investing in building new refineries last year, doesn't it? They are running at a loss now with oil at record highs, because no one wants the underlying product at these prices. Boom -> Stagflation (Slow Inflationary Transition) -> Recession (Systemic Deflation)
our food and energy inflation are due to excess liquidity- PERIOD. this has been building for quite some time, and its not the first time its happened. Even with greater consumption we have plenty, as the previous poster stated. Its an issue of too many dollars chasing dollar denominated commodities. Its econ 101, and it is very obvious.