Stagflation is Here. We Saw it Coming First

Thursday, Feb. 21, 2008 12:07 a.m. EST

Rising food and energy prices, a brutally slow economy, gold setting records.
If this all seems familiar, it’s because we have seen this before –- in the 1970s.

Stagflation, that curious phenomenon where inflation rises even as the economy falters, is upon us at last.

It’s the lead story in the major financial media now, but the Financial Intelligence Report (FIR), a monthly newsletter published by Newsmax Media, warned its readers of coming stagflation in April 2007.


FIR called the coming recession as early as January of that year, warning that the end of a historic and massive liquidity boom already could be felt in 2006.
It would just take time for Wall Street to figure out what Main Street already knew: Prices were rising, and assets were falling. Now the facts are getting to be too hard to ignore.

Both The Wall Street Journal and The New York Times led their business coverage Wednesday with the dreaded "S-word.â€