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Online Since 1995 |
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Stagflation - What is it? Stagflation is the painful combination of recession and high inflation. It's pain comes from the fact that during stagflation most Americans won't be able to increase their incomes fast enough to keep up with the inflation. And many will lose their jobs as unemployment rates will surge. This time around we're going to experience what I call Hyper-Stagflation because the skyrocketing price of oil will make this bout of inflation much more uncomfortable than any in the past. The Federal Reserve won't be able to help as their traditional tools will be of little or no use. Raise Interest Rates? The usual approach to reducing or controlling inflation is to raise interest rates. That slows the economy down and in effect pours water on the inflationary flames. But if they do that during stagflation, inflation will indeed be reduced but at the same time reducing interest rates slows the economy which adds to the already high unemployment rate. Reduce Interest Rates? When jobs are lost and the economy is in or near recession the Fed usually lowers interest rates in an effort to boost overall business activity and get people back to work. But if they do that during stagflation it will increase inflation to even higher levels. With stagflation we will be between a rock and a hard place with no effective government policy to come to our aid. That's why stagflation is so agonizing and frustrating. But the coming age of stagflation will be different from all others. Few Americans realize just how much of impact the price of oil has on our lives. When the cost of energy goes up, the cost of almost everything we buy climbs in concert. Half of our food supply is produced through the use of petroleum and natural gas based fertilizers. Plastics, pharmaceuticals and much of our metal is made with oil. And everything we buy has to be shipped and all that transportation consumes a lot of energy so prices will be raised across the board and the bottom line is your entire standard of living will come crashing down - unless you take precautions now - while there's still time. The good news is that the
chaotic years ahead will produce amazingly financial opportunities.
Huge fortunes will be made more quickly and easily than you ever
thought possible!
Disclaimer:
We are not in the business of providing financial advice or services
of any kind. Always consult with your personal financial and legal
advisors before attempting to use any of the tactics discussed on
this site or on our publications. Do not break the law. Nothing on
this site is intended to in any way encourage illegal acts either
now or at any time in the future. This information is for
informational and entertainment purposes only. |
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To learn how to get
rich off the coming economic collapse visit:
www.hardtimesgazette.com |
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