5% inflation...making the rounds... ....in liberal think tanks. Crank up inflation and the economy will recover. Pure nonsense of course and the Keynesians are wrong once again.
Recently there is a whisper making its way around U.S. Investor circles. With the recent round of Economic numbers being released, the whisper has increased to a dull roar: Stagflation is right around the corner.
Of course it’s just a preliminary discussion at this point. And there is certainly a large group of naysayers who linger in denial. Most Keynesian and liberal economists continue to grasp onto the idea that inflation is the answer and will not be a problem while growth is sluggish. Their new figure of 'containable inflation' is 5%. But they miss one major point. Numbers don’t lie. Stagflation is already be here and their target price could easily triple and we will be facing hyperinflation.