Stagflation...it is a very bad word that no one on Wall Street or Washington DC wants to be quoted saying...
the problem is the douche bags running the economy( Central bank/Treasury ) are in a horrible position. They know now that they let a huge housing bubble build and are scared to raise rates/tighten liquidity because it will cause a big old fashion financial meltdown with many bank failures and all of the messy things that come with this. So they can't act to fight the inflation problem with their full powers. My gut tells me that the inflation numbers are understating reality and the housing bubble problem is worse than their public commentary. Alan Greenspan threw a big party for the baby boomers and wrecked the house. Cleaning it up will cause some pain.
Inflation numbers have been understating the actual since they tied entitlement increases to the CPI back in I believe 96. Unemployment figures have always been cooked and the actual rate is much higher. The CIA which calculates estimated unemployment for almost every country on earth uses a much different methodology (than unemployment claims) and many believe the actual number may be close to double the stated figure. I agree stagflation is now alive and will only prosper.
Make money? What's the matter, can't we all just bitch and complain? Why does it always have to be about money!
stagflation means currency will be devalued. And even most spectacular rally will not save your money in real terms So the best thing to do is to move all assets somewhere where inflation is not such a big problem.