Inflationary Interlude, or Preamble to Skyrocketing Prices?

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As we have noted recently, the torrent of verbiage and the multiplication of warnings about an unfolding inflationary spiral has ramped up to hysterical levels in recent weeks. Warnings about a forthcoming collapse of the Treasury market have followed close on the heels of the unprecedented spike in oil prices, and have been further underlined by food riots and fuel price demonstrations in a variety of countries. Fire and brimstone emanating from Washington regarding forthcoming measures to curb "speculation" in commodities, and pressure on "philanthropic" institutional investors (pension funds, university endowments, foundations, and the like) to refrain from commodities speculation, which is allegedly playing a central role in surging energy and agricultural product prices has fostered a journalistic clamor along similar lines.

What does it all mean? Has a replay of the stagflationary 1970s gotten underway, or is it something less immediately threatening, but more fundamentally ominous?

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Inflationary Interlude, or Preamble to Skyrocketing Prices?

Letters to Moneysage

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