Stagflating Away, Hey (Sung to Jethro Tull's "Skating Away")

Latest GDP report says "stagflation".  We've been over that quite enough here, although here are some golden oldies for your enjoyment:

That is stagflation my friends. You have "the Ben Bernank" to thank for the flation and Barack Obama and the ReidPelosicrats for the stag. Told you so.

And as I also told you, we ain't pulling out until the end of next year. Businesses have hunkered down and cowered for nearly three years, they can do it for one more. They see the light at the end of the tunnel, they are not going to loosen the purse strings and hire and invest until they are out of the tunnel. But the stock market will anticipate this roughly six months prior to the fact. If, come May 2012, the light at the end of the tunnel is clearly not more of the Lightworker, the stock market should start to rally, really rally.

and

 That is not the only theory that has taken a beating in recent times. Those that obsess over "aggregate demand" have discredited themselves as a trillion dollars of spending has done nothing to have "aggregate demand" come to the rescue of the unemployed. I have described for you what happens when these two erroneous theories get together (and you add a little populist, anti-business rhetoric as lubricant). The offspring is called "stagflation." We have it and the remedy is tight money and pro-growth tax cuts and deregulation. We have the exact opposite right now...in the absence of a change of course expect this baby to grow into one obnoxious youth. Buy inflation-hedging stocks, like resources and big metal things. Avoid bonds and too much cash.