Greenspan sees early signs of U.S. stagflation

December 17th, 2007 by GoldSilver | Posted in Economic News |

The U.S. economy is showing early signs of stagflation as growth threatens to stall while food and energy prices soar, former U.S. Federal Reserve Chairman Alan Greenspan said on Sunday.

“We are beginning to get not stagflation, but the early symptoms of it,” Greenspan said.

“Fundamentally, inflation must be suppressed,” he added. “It’s critically important that the Federal Reserve is allowed politically to do what it has to do to suppress the inflation rates that I see emerging, not immediately, but clearly over the intermediate and longer-term period.”

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  1. One Response to “Greenspan sees early signs of U.S. stagflation”

  2. By Vanguardist on Dec 17, 2007

    Though the news as such is not pleasant, it was a pleasant surprise to read this alert from Alan Greenspan. I am a novice when it comes to Economics and the indicator analysis, but it is quite encouraging to me that this news, for the lack of better term, coincides with my forecast.

    The above statement will make sense if you skim my post on Stagflation ( Nov 7, 2007 and revisiting with more details on Dec 15,2007) at
    http://vanguardist.blogspot.com/

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