Can you say stagflation?
That’s what we are stumbling into. Big time. For a long time. And this morning even the Keynesian dufuses at the IMF issued a warning to that effect.
Of course, at the root of it lies the destructive monetary and fiscal policies that have become so completely embraced in Washington and on Wall Street that there is little hope they will be changed until a deepening stagflationary crisis finally causes a complete political upheaval. But, hey, at least there’s hope that the mule otherwise known as the American electorate will eventually respond to a repeated economic 2X4 upside the head.