It looks like those 'green shoots' which Bernanke saw were, in fact, merely fungus growing on the rot of the economy which the Federal Reserve has engineered through long term manipulation, mismanagement, and malinvestment.
People without jobs, and in particular jobs that pay well, are not able to buy consumables and take on additional credit, much less service the debt which they have on things which they have already consumed. Mirabile dictu!
U.S. stocks tumbled on Wednesday as worse-than-expected retail sales hurt shares in the sector, including Wal-Mart Stores Inc, and dampened recent enthusiasm over the economic outlook.
Government data showed sales at retailers fell for a second straight month in April, after a string of more upbeat reports suggested a turning point in the economic cycle.
And the prices of imports and 'real goods' are increasing as the dollar and financial assets continues to collapse.
We remember the stagflation of the 1970's very well. If you did not experience it as an adult with financial obligations it will be a new and instructive experience in monetary policy and the fallibility of economists and financial engineering.
The U.S. Import Price Index rose 1.6 percent in April. A 15.4 percent increase in import petroleum prices more than offset a 0.4 percent decline in the price index for nonpetroleum imports. Export prices also rose in April, increasing 0.5 percent.
Its too early to forecast for stagflation, but it remains a very realistic outcome.
