An Early Case of Stagflation

So far this week it seems like we’ve had an early taste of stagflation. Oil prices broke through 60 dollars, moving higher along with other commodities. Meanwhile, the consumer spending picture still remains bleak with no new fountain of strength. Don’t look now, but we could see higher prices in store for gas and other products. From an early indication, the growing slack in the Economy has proven no match for weaker fiat currencies circulating around the world. Despite a contracting economy, oil prices have risen 35%, what is causing this? Certainly not the fundamental picture.

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