Stagflation sightings multiply

We have long warned that stagflation, or economic contraction accompanied by inflation, would become so evident that even the most optimistic observers could not deny its virulence.

Last week, Warren Buffet was the latest to describe his encounter with the beast. The world’s most famous investor pronounced that the current economy is in the middle stages of a stagflation episode. Although Mr Buffet is not typically associated with either bullish or bearish sentiment, he asserted that both the “stag” and “flation” aspects of the condition would intensify before they relent. So, if we can all recognize the wolf at the door, can we agree on the best course of action?

AsiaTimes