I guess my biggest fear is a long, grinding, stagflationary hell, where wage workers see their purchasing power slip dramatically. There is very little reason to believe wages are going up anytime in the near future, but there are plenty of reasons to believe prices of assets/commodities will go up.
If, like me, you view the rise in the domestic and international commodities markets, the stock markets, bond markets, and housing markets (even stagnation is a sign of inflation, if prices were supposed to fall) as a bad, inflationary omen in this “Greatest Recession Since the Great Depression,” we’ve already started down that path. U.S. workers’ purchasing power has deteriorated very rapidly over the past couple of years.
