Does anyone remember watching original episodes of Charlie’s Angels…The Donnie and Marie Show…..The Love Boat….Sanford and Son? Yeah me neither I wasn’t born yet.
So if you are like me then you never experienced Stagflation. What is Stagflation you say….well it is when we have stagnant growth and rising prices. The wise people “controlling” our economy say that it won’t happen. They have checks and balances in place to prevent this from occurring.
They say “To energize the economy the Fed cuts rates. To combat inflation, it would boost rates. Rising inflation can reduce the Fed’s maneuvering room in terms of revving up a slowing economy.”
My suggestion to you is not to hold on to a lot more money but to keep spending but spend a little less. We can afford an economy slow down. I mean we have had some of the most amazing growth over the past 20+ years. So don’t panic and stop spending but save a little and spend a little. When people think there is a recession they cause the recession to be even longer because they stop spending. So keep on spending America. We are good at it just ask your creditors….
Read more info below.
http://news.yahoo.com/s/ap/20080228/ap_on_bi_ge/bernanke_congress
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