"Fall Into Stagflation"

Dollar Declines; Factory Data May Fuel Fed Rate-Cut Speculation
``Economic data raise the question whether the U.S. economy will fall into stagflation,'' said Masashi Kurabe, senior manager of the foreign-exchange trading department at Bank of Tokyo-Mitsubishi UFJ Ltd. ``This has negative implications for the dollar,'' which may fall to 116.20 yen today, he said.

If only we could know for sure. Maybe we better make a list of all the investments that worked well the last time we fell into stagflation.

1. Oil
2. Gold
3. Silver

I wonder how long it will be before those particular assets start outperforming financial assets, you know, like banking stocks?

Masashi Kurabe, forgive me for asking but you are just now arriving at the stagflation party? We've been partying here like it is 1999! Where the heck have you been?

In fact, your comments make me wonder if Deflationary Mark wouldn't be a better name. Perhaps I simply have a misplaced distrust of implied advice from senior managers of foreign-exchange trading departments though? Or perhaps it is because you look vaguely like a janitor coming in to clean things up? Who knows!