The Specter of Stagflation

If mainstream economists and market analysts’ predictions (wishes?) come true, and the US Federal Reserve lowers rates several times in the next few months, contrary to popular belief, things in the medium and long term will unequivocally get worse, writes David Saied. The upcoming events and the current Fed seem to be reminiscent of the early 1970s, where the Fed continuously “inflated” the money supply to fend off recession, therefore creating stagflation. A rising level of CPI “inflation” and higher unemployment — the so-called “misery index” — is quite possible. Unfortunately, in this centrally planned monetary system, only the Fed can know if stagflation will be allowed to show its ugly face again, wreaking the havoc it did in the awful 1970s. FULL ARTICLE