I guess with the google search boom in stagflation and useless fin media stagflation print pieces it was inevitable that someone would opine "Not sure we get runaway inflation but worse stagflation and tax increases are still really bad"
They are indeed. But a big part of what I'm saying is that this scenario happened 50 y ago after the global economy had finally deleveraged from 1932 and debt to gdp had troughed - that's an accommodating climate for your stagflation fears but less so today...
Today, policy mistakes tend to be pro cyclical and accentuate the disdain for commercial risk and reinforce the desire to accept zero or negative prospective returns in order to enjoy the security and benefits-in-kind that flow from risk less T bills
Let's work the Jesse James line, why do you rob banks ? Why hold securities that are deemed commercially risk less ? Cause that's where the money is...Policy has been caught in a hopeless deflationary analogue ever since the GFC, I don't see that changing anytime soon.
And by all means re-invent the future in your head but choose scenarios that meld with the here-and-now and not some historical stuff that is only relevant because it happened a long time in a galaxy far, far away. I prefer the falling forest trees that no one ever sees...
And to think today's blitz began from reading a rock & roll memoir on Primal Scream. Lone wolves go hungry and feed from the unwanted scraps that society discards. But from such garbage they fathom the most powerful art that imagines the future in vistas never before imagined.
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