All I can do is shake my head....
and this word comes to mind
“Stagflation”
Stagflation, inflation plus a stagnant economy. Our economy is doing pretty well WITH SOME NOTABLE EXCEPTIONS. Guess what; no economy is ever 100% good. There is always a fly in the ointment. The lower dollar is set to make 2008 a record year for exports. Wealthy internationals may soon start buying U.S. stocks (which look cheap to them), which should propell it to new highs. A little inflationary pressure ex-food & energy should do wonders for the yield curve. If so, we may have a normal looking yield curve for the first time in years. The lower dollar is not all bad and not all good. For now, I'll take it. As long as U.S. productivity keeps kicking butt there should be no stagflation.