via Mish Talk:
What is Stagflation?
Stagflation is recession coupled with inflation.
Great Depression era economist John Maynard Keynes thought the combination of recession and inflation was impossible.
That should have ended Keynesian nonsense right then and there. Unfortunately, it didn’t.
Keynes believes in government spending, stimulus, and other economic free money prime the pump nonsense.
Governments and academia latched on to free money and stimulus ideas. Thus, it’s no wonder Keynesian nonsense is the overwhelming consensus thinking.
The October 5 GDPNow forecast is for 1.3% growth. That’s low and at the stall rate, but seemingly not recession material.
Look closer. Real Final Sales are the true bottom line measure of GDP.
Inventory changes net to zero over time.
The latest GDPNow measure of real final sales is -1.0%. That is recessionary.
If these numbers stick, third-quarter GDP will only be positive based on an inventory build.
Case For Recession
- Tax hikes: Recessionary
- Tariffs (Biden is following Trump and threatens more): Recessionary
- Stock Market Bubbles: Inflationary While Expanding, Deflationary and Recessionary when collapsing.
- Energy Policy: Mandating 80% clean energy by 2030: Stagflationary
- Biden’s $1.5 trillion to $3.5 Trillion “Build Back Better” Plan: Inflationary
- Continuing Supply Chain Woes: Stagflationary
- Wage Hike Escalations: Inflationary
- Deutsche Bank Is On The Brink Of Collapse: Get Prepared For The Next Lehman Brothers Moment
- The Truth About the Uprising in Israel
- Hillary Clinton leaked emails reason to get rid of Gadaffi
- The recession is here, the market crash is next.
- Shocking Biden hot-mic reveals how handlers program his every move WATCH. Yes, this is 100% real.
- Forget the Global Collapse. Be Mad at Trump and Putin Instead.
- The Most Common Lie Used to Justify Third World Immigration Was That It Would “Improve” Western Economies
- Woman beats herself with hammer to frame boyfriend for abusing her and it worked until her friend released this footage…
- Trans terrorist kills Christian kids. Media:
- The ‘Trans Resistance Network’ has released a statement that Audrey Hale is the real victim in the Christian school shooting