I’ve never looked into the lag times on inflation feeding into the economy
our current situation is complicated by a declining economy and rising unemployment – how do people accommodate inflation in consumer goods and services at the same time they are losing their jobs and their wealth (stocks and real estate)? – do these factors increase the lag time on inflation? – do these factors prevent the inflation from occurring at all? – at some point prices can’t go higher because demand drops to zero?
these issues are, in part, why the fringe media is talking about “the summer from hell” this year as people finally boil over at the loss of half of their wealth (checked your 401K statement lately?) and any prospects of retirement while Wall Street and politicos continue their usual games of obscenely enriching themselves at the taxpayers’ expense
the leading edge of the summer from hell started in Iceland when their economy collapsed and has continued in other countries where the citizens are protesting against the results of the prevailing economic system – France is the latest country dealing with this trend
