<DrumBeat: June 26, 2009 The Oil Drum DrumBeat: June 27, 2009>

175 comments on Have We Reached an Inflection Point in Economics History?: “Indeflation” and Energy

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westexas on June 26, 2009 - 10:33am Permalink | Subthread | Comments top

Good article. BTW, Greenspan has weighed in on the issue:

http://www.reuters.com/article/GCA-Economy/idUSTRE55P0JZ20090626
Inflation is great future challenge: Greenspan

LONDON (Reuters) - Former Federal Reserve Chairman Alan Greenspan said on Friday that inflation poses a major threat to long-term economic recovery and its threat must be confronted.

"Excess capacity is temporarily suppressing global prices. But I see inflation as the greater future challenge," he wrote in London's Financial Times. "If political pressures prevent central banks from reining in their inflated balance sheets in a timely manner, statistical analysis suggests the emergence of inflation by 2012.

"Earlier if markets anticipate a prolonged period of elevated money supply."

In any case, my outlook (building of course, on a lot of work by other people), in my ELP Essay in April, 2007, was for deflationary trends in the auto, housing and finance sectors and inflationary trends in food & energy prices:

http://graphoilogy.blogspot.com/2007/04/elp-plan-economize-localize-prod...

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HARM on June 26, 2009 - 2:46pm Permalink | Subthread | Parent | Comments top

Greenspan was one of the chief architects of the housing and tech bubbles, through his endless manipulation of interest rates and extreme laissez-faire "no regulation --ever" policies. I would, at the very least, give the opposing view equal time. Personally, I disregard anything that comes out of his mouth.

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mos6507 on June 27, 2009 - 10:54pm Permalink | Subthread | Parent | Comments top

Didn't you read the article?

"Spiking energy and commodity prices lead to destruction of the economy"

there was no housing bubble, only peak oil. Such is the expert analysis of oil drum.

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RobinPC on June 28, 2009 - 5:38am Permalink | Subthread | Parent | Comments top

No. There were housing and credit bubbles, visible as undue price/credit rises. They were burst by the end of oil supply growth but exist they did nevertheless.

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ChrisN on June 26, 2009 - 3:51pm Permalink | Subthread | Parent | Comments top

Kudos, WT, you nailed it. ELP FTW!

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175 comments on Have We Reached an Inflection Point in Economics History?: “Indeflation” and Energy

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