Tuesday, May 10, 2005


The stagflation word was just debated again on CNBC. It is amazing that the US nominal GNP is growing at about 6.2%, a very high rate and after adjusting for inflation, it is growing at about 3.4% and yet folks are discussing stagflation!

The word was invented years ago during the Carter administration. There was a time when the inflation rate was virtually equal to the nominal economic growth rate; in other words our economy had no real growth. We are no where near that level now.

Use these time of worry to buy stocks!