5 replies to this topic

[nimblebear]

Stagflation Fear Spurs TIPS Demand; Fed Loses Respect

By Daniel Kruger

April 9 (Bloomberg) -- Rising oil prices, Mideast conflicts and a U.S. president perceived as ineffective contributed to the stagflation of the 1970s. Today, in the bond market, where Yogi Berra's immortal lines are increasingly invoked, ``it's deja vu all over again.''

Nowhere is that more evident than with Treasury inflation- protected securities. The difference in yields between 10-year TIPS and conventional notes has widened to about 2.5 percentage points, a seven-month high, and up from 1.43 percentage points in 2002. The gap suggests so-called real returns on the fixed-rate notes will be eroded by about $2.5 million annually on $100 million of securities.

``We have a measure of stagflation,'' said Paul Samuelson, who was the second recipient of the Nobel Prize in economics and helped popularize the term to describe slowing growth and accelerating inflation in the U.S. during the 1970s....
More here:
http://www.bloomberg...refer=worldwide

[greenie]

Give me a break. There is no inflation. Deflation has started for a while.

You do not even know what inflation is, and confusing between the cause and the effect.

Here is a good place to start:

http://video.google....061137769305763

[Jnavin]

I don't think Ben will lower rates either. He'll keep them the same or raise them. The dollar will run back up and the metals will get hit. The stock market? I dunno...

[skott]

no INflation? ! you've got to be kidding me and yourself. you can't even make that statement if you believe the govt's phony numbers. Latest trick is they won't include meat in the core cpi.

[arbman]

http://video.google....934454816686947

[arbman]

http://video.google....845760512239683

(second part of the above video)