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First, I'm borrowing MaxedOutMama's negflation term.
MaxedOutMama: Busy Today, But....
So I don't think stagflation covers this situation. I think a more appropriate term would be negflation, in which negative growth is joined at the hip with rising fundamental costs which induce inflationary pressures on the spending power of consumers sufficient to reinforce negative growth.
In order to have a redux, we must first find the dux. Therefore, let's go back in time.
February 8, 2008
U.S. isn't falling into stagflation, Fed chief says
I don't anticipate stagflation.
He was right. We were already in stagflation.
"We are facing a situation where we have simultaneously a slowdown in the economy, stress in financial markets, and inflation pressures coming from these commodity prices abroad," Bernanke said.
That's stagflation. You cannot fall into something you have already fallen into. So what did he anticipate happening next?
"At the moment, I think the greater risks are to the downside, that is to growth and to financial markets," Bernanke said."
Score one for the Fed Chairman. He saw the Great Negflation coming.
Well, I think it is safe to say that we've found the dux. So where's the redux?
June 10, 2009
China faces risk of stagflation
'In future, China is likely to see periods of stagflation, with CPI (consumer price index) rising above the long-term average level ahead of GDP,' said the centre, part of the National Development and Reform Commission, the country's top economic planner.
Silly China. We've already seen this once. If oil keeps rising, the entire global economy is going to crash again.
After writing this much it dawned on me to do a full search of the Internet for the word negflation to see what else appeared. There were a total of five occurrences. That surprised me a bit. I expected more. Two were on MaxedOutMama's blog, one was on my blog, one had nothing to do with the economy at all, but the last one was just plain spooky. It comes from the comment section of the following article.
February 29, 2008
Bernanke: "I Don't Anticipate Stagflation"
Bernanke has no credibility left. We are already in stagflation. The problem coming is not low growth with inflation however, it is negative growth with inflation.
How about Negflation? - mmckinl
Imagine my surpise! Bernanke again! I wonder if mmckinl had any idea just how negflationary things would soon get?
Sorry Ben Bernanke. Negflation somehow seems linked to you. You wanted the job as Fed Chairman. Remember? I guess it was a pretty easy decision back then though. With "no housing bubble to go bust", who wouldn't want the job?
Ten Economic Questions for 2025
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Here is a review of the Ten Economic Questions for 2024.
Below are my ten questions for 2025 (I've been doing this online every year
for 20 years!). These...
1 hour ago
34 comments:
Any silly term means the exact same thing - destruction of purchasing power. So why don't we just call it what it really is?
Charles,
Here's yet another silly term that means the exact same thing.
Spinflation!
CNBC can't stop talking about how our dollar's decline is helping commodity stocks yet again today.
Stag,
Per today's release of the Fed's flow of funds, household net worth has declined $14 trillion since the peak. $14 trillion/~100 million households = $140K/household = huge fees for wall street.
Somehow, negflation doesn't do it justice. Fraudflation, Ponziflation, CONflation deCONflation, propagandaflation, shamflation, scamflation, leverageflation don't quite do it justice either.
Maybe fedflation.
Anyway, the good news is it appears the fed was able to preserve most of the ponzi debt despite the enormous loss of wealth. Just think how bad the wealth destruction would have been if we had an outright debt deflation.
One bubble (dot.con) might be a mistake. Two bubbles is a crime.
This exponential credit growth system is out of hand.
Glad you had a post up Mark. I was worried you got caught in a deflationary spiral that resulted in so many g forces that you could not escape and collpased into a negflation black hole!
Mark,
I think it's going to be a jobless, double dip flip.
Kevin
Kevin,
I was getting worried, had not heard from you in a bit. Good to see you. I think you might like tonight's post.
I am still waiting for the topless double dip, but that's just me!
LMAO!
GYSC
Topless double dip sound like some kind of ice cream
Yum Yum
Kevin
Hey everyone,
Got caught up in the game of the week in Civilization for PS3, again. It's an escape from reality.
You play as the Chinese in this scenario, with the opponents being the Americans, French, Germans, and Greeks. I can now beat it on Deity difficulty setting. Here's the strategy.
Rush out and grab the vast majority of the natural resources, send some archers out to pester the French, and send one warrior to block the Greeks. Ignore the Germans entirely. Everyone else swamps the Americans until they fall.
The game really is an escape from reality though. If you want to buy something you must have the gold to pay for it. There is no massive American trade deficit. The game doesn't seem to understand the idea of China trading goods for IOUs. Go figure.
Here's a bonus word to describe a potential double dip.
Decepticonflation!
Twice the dip implies twice the con. Watch the global economy "transform" under the strain, again.
Mark
Any term that is used to describe this fleecing that has the three letter CON in sequence is good. DeceptiCONflation seems to fit the bill on that nicely.
Bravo!
Kevin
Kevin,
http://en.wikipedia.org/wiki/Decepticon
Most Decepticons think very little of humans and consider them no better than pests or "insects".
Decepticongress shouts -> Decepticongrass shoots
Behold the power of the Decepticon transformations!
"Behold the power of the Decepticon transformations!"
I am just a poor boy, though my story is seldom told.
I have squandered my resistance,
For a pocketful of mumbles, such are promises.
All lies and jest.
Still a man hears what he wants to hear and disregards the rest.
http://tinyurl.com/kl8pbt
Help Mark pull me back!
LOL
Kevin
Here's a bonus word to describe a potential double dip.
Decepticonflation!
The words deceptiCONflation and bonus go hand in hand. Just ask any wall street banker.
Here's one of my favorite deceptiCONflations: We have to save wall street to save main street.
Iraq didn't have WMDs but the banks did (aka derivatives).
Here's another favorite: We don't want to stifle financial fraud...uhmm, I mean financial innovation.
Stag,
I think the following skit pretty much sums up banker bonuses and the WMDs in the vault:
http://www.youtube.com/watch?v=7GSXbgfKFWg&feature=related
DeceptiCONflation. We had the deceptiCON part, now we need some flation to cover up the sham. Apparently, that's what the Fed and CONgress are for.
Best and brightest. Dumb and dumber. sigh
Love the decepticons! Best decepticon ever: 1st generation megatron, galvatron sucked!
Mark,
I have the "Pure Snow" scene form "Better Off dead" on the blog tonight!
take care
mab,
"Best and brightest. Dumb and dumber. sigh"
Obfusflation:
It's the obfuscation created when financial innovation combines the deflationary Great Depression with the inflationary 1970s. What's inflation going to do next? Who knows? Nobody knows!
Conjobitis:
Rare but fatal banking system disease. Leads to massive job losses. Otherwise known as [Black] Swan Flu. Pronounced.. "Con job it is".
GYSC,
"Best decepticon ever: 1st generation megatron..."
Too big to fail? ;)
"Best decepticon ever: 1st generation megatron..."
How about this deceptiCON: Optimus (sub)Prime.
The only problem is the transformation is not reversible.
Optimus Subprime!
When in Roman decline, do as the Roman decliners do!
Glut-in-US Maximus!
From wikipedia...
"The gluteus maximus(or glutæus maximus) is the largest and most superficial of the.... "
economies?
"It makes up a large portion of the shape and appearance of the...."
prosperity?
My guesses were wrong. The correct answers are actually "three gluteal muscles" and "buttocks". Oh well.
Oh man this comments section has a life of its own!
Optionus ARMprime?
Foreclosurescream (starscream)?
Deafult Wave (sound wave)?
Too funny.
GYSC,
"Oh man this comments section has a life of its own!"
Life of its own?
Herbert West vs. Ben Bernanke
http://en.wikipedia.org/wiki/Herbert_West
Herbert West, Re-Animator
"Herbert West is the inventor of a special solution that when injected into a main artery of a recently deceased person causes the body's mechanical, living functions to return. However, most subjects that have undergone the "re-animation" process have turned violent and, after failed attempts to return to their own graves, have terrorized the communities into which they were reanimated."
Ben Bernanke, Re-Animflator
Ben Bernanke is the inventor of a special solution that when injected into the reserves of a recently deceased financial institution causes the bank's mechanical, loaning functions to generate returns. However, most subjects that have undergone the "re-animflation" process have turned stress intolerant and, after failed attempts to return to their own graves, have terrorized the communities into which they were reanimflated.
Stag,
We are so far along the exponential inflationary credit curve that almost every single chart I look at is vertical. The vertical parts of parabolas scare the daylights out of me.
We have entered the realm of economic absurdity.
We blew through hearing/reading about tens of billions and jumped right to tens of trillions!
What comes after a trillion?
mab,
"The vertical parts of parabolas scare the daylights out of me."
It's a good trait to have! It seems to inspire "economic absurdity" in most people.
"What comes after a trillion?"
How do you control billions of dollars?
1. Start with a trillion and ride the parabola!
2. Hyperinflate and steer the wheelbarrow!
3. Become the Fed Chairman!
Crops under stress as temperatures fall
Our politicians haven't noticed that the problem may be that the world is not warming but cooling, observes Christopher Booker.
http://tinyurl.com/md7yfo
I don't know maybe the politicians are planning on the masses burining their worthless paper dollars to heat their homes.
LOL
Kevin
Kevin,
There Is No Crop Bubble to Go Bust
Cooling: Making Sure "It" Doesn't Happen Here
I'm just picturing the headlines if Bernanke's powers were expanded to include setting global temperature policy. ;)
Golden State losing folks as old dust bowl beckons
http://tinyurl.com/m5yq6m
Glad I was ahead of the curve on this one.
LOL
Kevin
I just heard this on CNBC to describe today's stock market drop.
"Eveyone bought commodities based on..."
I'll leave the rest to your imagination. I will give you a hint though. It did NOT end with...
"...our nearly constant hyping of commodity stocks and a declining dollar."
Still comfortable on the inflation/deflation sidelines.
Kevin,
"The state is short about 50,000 registered nurses, according to the California Labor and Workforce Development Agency."
Too bad we couldn't retrain this country's excess investment bankers to be registered nurses. However, I fear that it would lead to medical innovation. If drawing a few CCs of blood from patients is profitable, then imagine the money to be made extracting liters (using extreme leverage).
Stag,
In America, this has become known as the "granite countertop" policy:
http://en.wikipedia.org/wiki/One-Child_Policy#Increased_savings_rate
China: We'd like our savings back now.
America: Sure, bring a hand cart. Btw, do you still sell formica?
mab,
"China: We'd like our savings back now."
On a related note, Pesek's in top form again today.
Bono’s China Fantasy Tour Seeks U.S. Debt Relief: William Pesek
http://www.bloomberg.com/apps/news?pid=20601039&sid=aGndoXCbRu24
Mark,
"Too bad we couldn't retrain this country's excess investment bankers to be registered nurses."
That would give a whole new meaning to this song.
Red Hot Chili Peppers - Californication
http://tinyurl.com/l3bqwl
LOL
Kevin
Stag,
Bono. He's the Irish version of Joe Biden. They both suffer from chronic cases of foot in mouth disease.
http://www.counterpunch.org/bono10192006.html
http://waronyou.com/forums/index.php?topic=7050.0
Do as I say, not as I do.
"Only the little people pay taxes" - Leona Helmsley
Kevin,
Dammit California! (Dani California)
mab,
Monday Bloody Monday! (Sunday Bloody Sunday)
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