And I quote:
"In economics, a depression is a sustained, long-term downturn in economic activity in one or more economies. It is a more severe downturn than a recession, which is seen by some economists as part of the modern business cycle.
"Considered by some economists to be a rare and extreme form of recession, a depression is characterized by its length; by abnormally large increases in unemployment; falls in the availability of credit, often due to some kind of banking or financial crisis; shrinking output as buyers dry up and suppliers cut back on production and investment; large number of bankruptcies including sovereign debt defaults; significantly reduced amounts of trade and commerce, especially international; as well as highly volatile relative currency value fluctuations, most often due to devaluations. Price deflation, financial crises and bank failures are also common elements of a depression that are not normally a part of a recession."
***********
Yeh, I'd say that shoe fits. I was saying even before the shit hit the fan that we're going to go into a depression, it won't be as bad as the Great Depression, but it will be a depression. I was right.
Krugman has been saying for some time that we're in a depression as well. He even wrote a book about it, not that you read, Nuguy.
The media has dubed this the "Great Recession", which is problematic because a recession is well defined. Technically, we're not in a recession anymore. But that doesn't mean the economy is going any good.
-- Modified on 6/13/2012 5:57:53 AM
"Stagflation is one of the worst economic conditions a country can be in, and the United States just entered it."
Read more: http://www.foxbusiness.com/economy/2012/06/08/ready-or-not-stagflation-is-here/#ixzz1xTpnMZBd
-- Modified on 6/11/2012 3:47:06 AM
There's a few relationships at play here.
1) When the economy is growing, demand picks up. When demand picks up, and if supply stays the same, prices increase. This is inflation. Moderate or low inflation is the norm when economic growth is high.
2) When the economy shrinks, demand also goes down. If supply stays the same, than prices decrease. This is deflation.
Unless other factors act upon it, it is normal for prices to fall in recessions and prices to increase during times of growth.
Stagflation is the worst of combinations. Prices increase while the economy shrinks. This rarely happens, but it certainly can happen. It happened in the United States in the late 70's and early 80's.
A lot of factors played into that. First, we had built up a lot of debt paying for the Vietnam war, and this decreased the value of our currency. The other contributing factor is that Nixon abandoned the Bretton Woods System. This is a bit complex, so I encourage you to look this up. The result was that the US dollar was left to float, and it resulted in the weakening of the dollar, thus resulting in inflation.
At the same time, there was an OPEC oil embargo going on, and since economic growth is so dependent upon energy, economic growth slowed down.
So stagflation is high inflation, plus an economic slowdown. If both these things are not happening, then you don't have stagflation.
Exhibit A: Don't take my word for the definition of stagflation. Here's a wiki link.
http://en.wikipedia.org/wiki/Stagflation
Exhibit B: Here is a historical chart of the Consumer Price Index. Notice that during the stagflation of the 70's, consumer prices were increasing at nearly a 15% rate.
http://www.unc.edu/depts/econ/byrns_web/Economicae/consumerpriceindex_image002_0000.gif
Exhibit C: Here is a link for the current CPI. http://www.bls.gov/news.release/cpi.nr0.htm
Take note that the CPI right now is at a low 2.3%.
The lesson? Don't believe everything you see from Fox News. Even if it's on the internets.
-- Modified on 6/11/2012 6:01:17 AM
stagflation..
You might believe we're in recovery, but ALL the numbers show contraction and staglfation
-- Modified on 6/11/2012 6:31:08 AM
Next lesson. Why would Fox News say this? Because QE3 spending may be coming up, and this would inject more captial into the economy. This would benefit the economy (in the short term). That wouldn't be good for Fox News politically, since they want Obama to lose. So, they're bitching about inflation, even though inflation is LOW.
That doesn't mean the economy isn't in bad shape right now. It certainly is. We're in a more traditional style depression right now. Not as bad as the Great Depression, but a depression, nonetheless. But we're not in stagflation. Just look at the numbers in my last link.
We're in a depression right now. That's worse than stagflation. So, it's not like I'm handing you shit and saying it's roses.
Facts are facts. We have a 2.3% inflation rate. Historically, that's pretty damn low. Inflation was at 4% at the beginning of the economic growth of the 90's.
The CPI was at 0.2% in January. It was at ZERO percent last December. We're nowhere fucking close to stagflation. You're just plain fucking wrong. Man up and admit it.
Willy your the one not getting it... LOL
and you can have last word, this back and forth bores me
http://www.google.com/search?q=stagflation+in+united+states&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a
except for one. The same link you originally posted!
Even if there were current news reports about it, it still wouldn't matter. I gave you all the information you need. 2.3% inflation is not high enough to even remotely classify as stagflation. It's like you're saying 2+2=5, and your proof is that you can google it!
Man up and admit you're wrong! There's no shame in it. Sometimes people are wrong. It happens. PW, proved that I was wrong by fucking up the words "worse" and "worst". He's right! I fucked that up! I acknowledge my fuck up, learn from it, and move right along. Why can't you admit that you're wrong?!?!?
I used to follow this stuff a little bit but it got really depressing and scary. I just hope things work out ok with whatever factors make up an economy.
haven't heard that word from any of the so-called experts. Is Willy ahead of everyone?
Regradless, Willy can also explain wht his prez has done to pull us out of Willy's 'depression"?
And I quote:
"In economics, a depression is a sustained, long-term downturn in economic activity in one or more economies. It is a more severe downturn than a recession, which is seen by some economists as part of the modern business cycle.
"Considered by some economists to be a rare and extreme form of recession, a depression is characterized by its length; by abnormally large increases in unemployment; falls in the availability of credit, often due to some kind of banking or financial crisis; shrinking output as buyers dry up and suppliers cut back on production and investment; large number of bankruptcies including sovereign debt defaults; significantly reduced amounts of trade and commerce, especially international; as well as highly volatile relative currency value fluctuations, most often due to devaluations. Price deflation, financial crises and bank failures are also common elements of a depression that are not normally a part of a recession."
***********
Yeh, I'd say that shoe fits. I was saying even before the shit hit the fan that we're going to go into a depression, it won't be as bad as the Great Depression, but it will be a depression. I was right.
Krugman has been saying for some time that we're in a depression as well. He even wrote a book about it, not that you read, Nuguy.
The media has dubed this the "Great Recession", which is problematic because a recession is well defined. Technically, we're not in a recession anymore. But that doesn't mean the economy is going any good.
-- Modified on 6/13/2012 5:57:53 AM