Thomasnunnink’s Weblog

stagflation

April 7, 2008 · Leave a Comment

Our economy is heading toward a recession in the form of underemployment, and over-inflation. The combination of both predictably results in a downward spiral of consumed goods and a demoralized working class with marginal income. In an attempt to stop this inevitable economic process the Federal reserve commission have raised credit to banks, and loan companies and other financial institutions. The government has even poured money into the dwindling stock market. An economic recession is a natural process of inflation due to rising wages which results in higher prices of consumed goods. Counteracting the consequences of a moderate recession today may lead to greater recession in the future, or so some believe.  

Categories: U.S, world affairs
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