I say Stagflation. Due to globalization and availability of cheap educated labor in Asia, job growth will continue to be anemic in US, and even those who do have decent jobs in the private sector will not see any significant increase in their compensation due to outsourcing pressure. Of course the top management in most of the private sector will continue to do great as profits continue grow due to expansion in Asia and latin america. Feds policies will lead to inflation in commodity and energy prices which will creep into food and transportation. So thing will get more expensive while salaries will stagnate. Middle class will continue get hammered, the rich will get richer (specially those with exposure to commodity stocks and top management of MNCs)…disparity between the haves and have nots will continue to grow.
