In the midst of what is called an economic recovery, GDP is under 2%, wages are outpaced by inflation and to top our current stagflationary spiral off, unemployment is stuck at 9.0%.
Oh yeah, here we go again...
"From this point on, there is no further stimulus available, either monetary or fiscal. Budgetary constraints are likely to cut state spending further, and inventories are unlikely to increase when growth is slow. As a result, price pressures from global commodity and energy markets may hit future GDP growth. On the inflation front, the PCE deflator is already far outstripping the Fed’s 2011 forecast range, released on April 27, of 2.1 percent to 2.8 percent, suggesting the Fed’s immobility on interest rates is producing increasingly negative real rates, boosting inflation."
U.S. GDP data starts to spell stagflation | Reuters Breakingviews
Note to Keynesians: it doesn't work. It never has and it never will.
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