Personal spending went up 0.2% but rate of personal income increase stayed the same at 0.3% – stagflation in full swing
Peter Oberois
Oct. 29, 2006

The first indication of stagflation is when the consumers and common people (not the wealthy) has to start borrowing to maintain their standard of living. That is exactly what has happened in the last several years. The zero savings has turned into a negative savings or net borrowing – credit card, home equity loans and so on.

At 8.30 AM October 30, the personal income and spending report will show that stagflation has remained intact. As a matter of fact an analysis of the details of the report will show as borrowing peaks out, the stagflation is soon transforming into deflation-oriented recession.

The housing market collapse, the underemployment and overall mood of uncertainty are having deep effects on the economy.

While bond market will gain strength the stocks will have deep trouble in coming months.

Personal spending went up 0.2% but rate of personal income increase stayed the same at 0.3% – stagflation in full swing
Peter Oberois
The housing market collapse, the underemployment and overall mood of uncertainty are having deep effects on the economy...
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How is that possible you may ask. But that is how the markets behave. The collapse in 2000 was just the start of wave one downwards. The wave two in reverse direction is getting completed with horrible fundamentals.
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GDP growth of 1.6% confirms stagflation as economy heads for a deflation plagued depression
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The deflation will be triggered by the inability of the economy to purchase goods and services. Every long term depression starts with underemployment and stagflation...
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The number of homes sold actually increased but the prices dropped sharply...
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Nigerian oil production has halted due to militant violence and is unlikely to be restored anytime this year : Royal Dutch/Shell
Media Release
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The rate increase pause from Fed coming to an end as commodities bottom
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