StagflationHad to come back.
Just when I thought I was completely out to lunch, two different sources start talking about stagflation this week: an article in the Globe this weekend and an older analyst on BNN during the week. It is rather obvious to everybody now that governments are loathed to raise or lower interest rates. More and more analysts are saying to stay at the 3 to 5 year range of the yield curve. Why not buy real return bond: sky high inflation coming to cover the US debts and no interest rate rise in sight for fear of killing the economy?