April 16, 2020
For those who remember the 80s when the combination of high oil prices and a recessionary environment resulted in stagflation and treasury bill rates nearing 20%, this is not a pretty picture.
Calls for stagflation in the medium-long term are increasing (stagflation=assets cost more, rates rise, little or no growth). What makes this economist’s call interesting (See link to Bloomberg interview with Torsten Slok of Deutsche Bank, below) is that he ties in stagflation to the increasing disparity in generational wealth and implies a confiscatory remedy as a result. We are already seeing the seeds of this in recent state and federal court rulings and “reform” proposals. After the huge stimulus is over, It is anyone’s’ guess and a Brave New World.
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