Asia Times Online: US Financial Collapse in 2008: Where’s the juiciest bear food? - by Martin Hutchinson
US Financial Collapse in 2008: Where’s the juiciest bear food? - by Martin Hutchinson
Overall, 2008 looks to be a good year for bears. The US Federal Reserve has been walking a tightrope since August between the precipices of a collapsing financial system and resurgent inflation.
With a 3.2% November Producer Price Index rise (7.2% over the previous year) announced on Thursday and a 0.8% Consumer Price Index rise (4.3% over the previous year) announced on Friday, it can now be officially confirmed that the tightrope has vanished into thin air. The United States over the next 12 months will experience both a collapse in its financial sector and a violent resurgence in inflation, and there’s nothing whatever the Fed can do about it, no interest rate trajectory that will not worsen one problem more than it alleviates the other.
Labels: recession, US Economy, World Economy
