by Martin Armstrong
Armstrong Economics
Some people have a very hard time understanding that we are in a massive deflationary spiral; they think that rising prices simply means it is inflation and not deflation. Then they mistake stagflation for deflation and wonder why people are spending more on less. They only see prices, not disposable income, and certainly not economic growth and unemployment.
Prices rose sharply following the OPEC oil price hikes of the 1970s, but the sharp rise in energy crowded out other forms of spending, resulting in rising prices that had nothing to do with a speculative economic expansion but a deflationary contraction they called STAGFLATION occurred with rising prices and declining economic growth.
This is like Biden saying vaguely that he will press corporations to raise wages and lower prices. Great plan, which, as always, means absolutely nothing and illustrates that he has nothing to offer. Biden revealed his position that government is never the problem.