Economy

<a href="http://www.reuters.com/article/businessNews/idUSN1636789220071216?feedType=RSS&feedName=businessNews&rpc=23&sp=true">Greenspan sees early signs of U.S. stagflation</a><br />n<br />n<blockquote>The U.S. economy is showing early signs of stagflation as growth threatens to stall while food and energy prices soar, former U.S. Federal Reserve Chairman Alan Greenspan said on Sunday.</blockquote><br />n<br />nDamn, I remember the 70's and the stagflation that gripped the country then. It was not what I would call a fun time. To think that we might see it again is a little scary. We have all seen food and energy prices rising very fast recently. As for the economy slowing I will have to believe Greenspan. Locally here growth is booming but I understand that isn't the case throughout the US. So, how does our Fearless Leader respond to this?<br />n<br />n<a href="http://www.forbes.com/feeds/ap/2007/12/17/ap4449927.html">Bush Says US Economy Is Safe and Sound</a><br />n<br />n<blockquote>President Bush on Monday tried to reassure an edgy public that the economy is "pretty good" despite the dreary mix of a failing housing market, a national credit crunch and surging energy costs.<br />n<br />n"There's definitely some storm clouds and concerns, but the underpinning is good," Bush said at a Rotary Club meeting, an informal setting chosen to show the president engaged with local communities. "We'll work our way through this period."</blockquote><br />n<br />nIt really strikes me as funny how the President comes back with this right away. Truthfully though, what should he do? Like him or not, he needs to try to keep the public looking positive at the economy or things will really turn sour fast. <br />n<br />nHow many of you out there remember the soaring unemployment, soaring interest rates and soaring inflation of the late 70's? If you had a job, you sure didn't leave it because there were no jobs to be had. Money was tight and things were tough. It's one of those things I don't like to remember because it was so scary. To think we might see it again is really scary.<br />n<br />nI would be curious to know who could change the course of this thing and how. I understand less about the economy and how it works than most things so I don't know what the fix for this would be. Tightening credit is supposed to slow inflation but with the housing markets and business activity all ready down that would strangle that even further. Ease credit for housing and business activity and then inflation will take off even more. So what is the answer? Is there one or do we need to let the markets adjust themselves? Damn I hate this shit.<br />n<br />n<strong>There ain't no answer. There ain't gonna be any answer. There never has been an answer. That's the answer. Gertrude Stein</strong>