Torie
Moderator
Atlas Legend
Posts: 46,103
Political Matrix
E: -3.48, S: -4.70
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« on: September 07, 2011, 10:40:45 AM » |
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Yes, the GDP number is in real dollars. So we have stagflation, with the emphasis on stag. The government has been printing a lot of money to keep up the money supply since banks aren't lending much, and may be beginning to overshoot the mark. That might be why the Fed members are in sharp disagreement about just how much more money to print.
What is unusual about all of this, is that it seems to me much of it is generated by a lack of confidence as opposed to the usual tools really being out of whack. What the economy really needs to do is see a real good therapist, who can convince it that this too shall pass - eventually.
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