This Stagflationary Recession Is The End Of The Middle Class, This Recession Really Is Different
This inflationary recession—also called stagflation—is an odd beast in any case Please Support our operation http://buymeacoffee.com/silverreport and buy me a coffee. The combination of both purchasing power declines and falling productivity violates not only every modeling presumption made since the Keynesian revolution of the 1930s but also just plain intuition. Higher prices are supposed to signal higher demand and/or tighter supply, not lower demand and higher supply.
So yes, this is strange. We are going to have to get used to it. It’s what happens when the money itself loses its integrity. The whole point of money in the first place—the essence of its economic utility—is to provide a common tool of measurement to facilitate trade and enable accounting. Its emergence permits investors, producers, and capital owners to assess the economic rationality of their actions.
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