Global Economics

We Stagger Forward in Our Type II Stagflation


A US Airways airplane takes off at Ronald Reagan International Airport in Arlington, Va., with the U.S. Capitol building in the background

Photograph by Andrew Harrer/Bloomberg

A US Airways airplane takes off at Ronald Reagan International Airport in Arlington, Va., with the U.S. Capitol building in the background

Taken together, with the global economy in the ‘twilight zone’ and central banks still engaged in the great monetary easing, type II stagflation continues to rule supreme: economic ‘stag’ coupled with asset price ‘flation’. My only worry is that a positive outlook for risky assets is now pretty much the consensus view.

… U.S. 4Q is now only tracking at 0.4%, according to our U.S. team.

—Joachim Fels, Sunday Start, Morgan Stanley, December 2, 2012.

I just did an unscientific study of Politico above the iPad fold. I believe there was not one headline alluding to the present state of the American economy.

Pathetic.

I agree we are all transfixed, aghast, at the cliff’s precipice. Some, not all, are and will get smarter at fiscal economics as we kick the Debt & Deficit into the summer, hence.

At the same time, the sub-2 percent feel of this economy, combined with Europe and other global laggards, makes for a challenging December.

After the recent CEOs-to-WDC charade, after the “theater” of post-election Washington, after the bipartisan smallness-of-vision, do any of the elected few actually care what is going on outside 20003?

Dis-aggregated, what portion of America is now in recession? 70 percent?

What a disappointing weekend of political blather.

December arrives; 2013 beckons. We stagger forward in our economic Stag and our asset-price ‘Flation. Discuss.

Keene hosts Bloomberg Surveillance 7-10 a.m. ET on 1130 AM in the New York metro area and nationally on SiriusXM 113.

Coke's Big Fat Problem
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus