Inflation from Asia stagnation from America and Europe – the world economies start suffering the after effects of global stagflation
Sam Adelton
Apr. 10, 2007

China and India are growing close to 10% rate. But the common people are actually getting squeezed more than 20% in unofficial inflation. The spill over effect in America and Europe is in commodity inflation. But overall, the core economies in every country are suffering severe stagnation.

The global stagflation is creating a wealth gap. The asset based inflation in gold, real estate and stock market have created a new generation on worldwide billionaires and millionaires. At the same time the farmers, workers and middle class in America and Europe are becoming poor.

The net effect on the global stock markets is very bad. The Asset classes just like real estate in America will fall apart. The stagflation is the byproduct of supply side trickle down economics and the effects of the same have started hurting the financial markets. Stagflation actually started in 1981. But it took twenty-six years to finally hit the Wall Street.

Inflation from Asia stagnation from America and Europe – the world economies start suffering the after effects of global stagflation
Sam Adelton
The stagflation is the byproduct of supply side trickle down economics and the effects of the same have started hurting the financial markets. Stagflation actually started in 1981.
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Japan showing sign of deflation again –Machine orders fall more-than-expected - the impact can be severe on US and Asian stock markets
Peter Oberois
The stock markets all over the world are closely watching the deflation in the world’s second largest economy. Japanese deflation that started in 1987 is still in full force. The Japanese economy is still extremely export oriented.
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Oil will continue to fall Dow will the downtrend in oil - can Dow crash?
Peter Oberois
The stock especially the dividend paying stocks can act like municipal bonds with little movement on the upside and downside. Analytics point out unless the economy tanks rapidly, stocks may hang in there for a long time.
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Crude oil in steep slide as lack of demand and oversupply embraces the market in absence of geopolitical gyration
Peter Oberois
Crude oil bulls say – in the last twenty years no new reserves were unleashed. Well that is true to some extent; the existing reserves right now are yielding levels never imagined before.
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High demand for Treasury inflation- protected securities (TIPS) shows Fed has lost control over economy and markets – stagflation hits main streets
Alan Hershey
High demand for Treasury inflation- protected securities (TIPS) conforms the stagflation theory. If that is the real underpinning in the economy, the Dow can stay between 11,000 and 13,000 for the next twenty years.
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Unemployment rate fell to a six-year low of 4.4% but underemployment skyrocketed up – the long term effects on stocks, bonds and currencies
Peter Oberois
Simply put, if people cannot get jobs they deserve, they have to accept burger-flipping jobs. That creates underemployment – a typical characteristics in poor developing countries.
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Oil will continue to collapse towards $50 a barrel and stock market will join the downtrend
Sam Adelton
But a point has reached when over supply of oil will make it come down sharply. The stock market will start the downward journey as economy starts going south under deflation.
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