The word stagflation has been bandied about regarding our current economic situation in comparison to the 70s. I wonder if that word is too mild? There are obviously differences from that period, not the least being the amount of crushing debt that exists in the world. When we left the 70s the US Government had something like $900 billion in debt. We've increased that by an incredible amount in 30 years while at the same time our nations productivity has steadily been outsourced offshore. We've increased entitlement spending, started 2 wars(that are still raging) and are about to get into a 3rd, and all the while the Fed has been printing trillions out of thin air to maintain stable(ly increasing) prices and to keep unemployment low even though using real metrics the unemployment rate is around 22% right now.

So are we in stagflation territory? Time will tell but we may also be primed for Crashflation. Bill Bonner offer this analogy for our current situation:
The economy is caught between an unstoppable force on one side and an immovable object on the other. Between a Great Correction…and awful money-printing. Deflation and inflation.
But what if they both win?

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