OECD forecast aligning with the Ducks

[Rubber Duck]

Yes, the word Stagflation is at last being used in regard to forecasts for the US economy. The OECD, however, is still qualifying it with the word "mild", which the Duck specifically didn't.

http://news.bbc.co.uk/2/hi/business/6687313.stm

(Thread starter reinstated after moderating error.)

[bwhhisc]

Originally Posted by Rubber Duck

Yes, the word Stagflation is at last being used in regard to forecasts for the US economy.

The US is really starting to feel the pinch now in the retail sectors, most of the costs driven up by the rising price of transporting and delivering goods which is way up over the last 6 months due to the rise in the price of a barrel of oil. Much of the oil price spikes should be blamed on its value being tied to the sinking dollar, plus the greedy speculators sucking blood on the sidelines. Food prices at the grocery store level, and in restaurants are the most noticable increases in the last few months probably 15% or more overall. A long tough road ahead IMO.

[Rubber Duck]

Its getting tough here as well, must be much worse relatively there.

China by contrast is threaten with growth dropping back into single digits.

What people don't understand is China has so many fiscal options. For them it is little bit like letting the foot off a little a vehicle that is careering downhill slows a little. By contrast Bush is trying to hit the gas on a vehicle that has stalled because the tank is out of gas.

[bwhhisc]

Originally Posted by Rubber Duck

Its getting tough here as well, must be much worse relatively there.

People are changing their habits quickly, many of our employees that travelled 30 miles to work are looking for work closer to home versus a 5 or 6 day commute that costs them $ 80 plus a week in gas. The biggest pinch I am reading about seems to be the downturn in eating out at sit down style restaurants. The fast food restaurants have instituted $1 menus, coupons to bring you back with your order, and snack size portions to try and hold their sales. Reports of lots of cut back in travel by vacationers this summer, probably 20 plus percent. Things are not going to shake out anytime soon.