It seems like it more and more each month. Here in Rochester, unemployment is at a 4 year high, while gas prices have actually gone down to around $4 due to inflation. I don't think the prices will stay that low for long, but it's a good indicator of just how big inflation is right now. Our dollar as depreciated even more too. So, do you think our economy will resemble it's state in the 1970's in the next decade? Or is it truly just another recession that will be a bit more like the '90-'91 dip?

   I don’t see the similarities between the 70’s and this decade...

   When stagflation was around globalization was not possible.  There was massive amounts of protection in the 70’s in all states, energy prices were much higher back then, compared to today (we have it cheap compared), and the Fed is being increasingly anti-inflationary...

   The 90s - different time and different America...

Hey Veg, I work in Rochester... Pennsylvania that is.

Yes we are seeing stagflation, for sure.  Inflation is runing up, and it is mainly due to a weak dollar ans high energy prices.  Food prices are also increasing due to energy demand for corn as a fuel feedstock.

Lots of the inflation is being driven by massive development in China and India, which is why yoiu see metals prices at about 5x what they were 5 years ago (I am a lifelong metals expert).

Meanwhile here in the US of A, the economy is in fact slowing down, but the Fed can;t do more rate cuts because they will fan the inflation.  And if they jack up the rates to rein in inflation, the economy might slow down more due to the effect on increasing mortgage rates.

My opinion... we need to fix this by pursuing a "strong dollar policy" and by promoting energy conservation, expanded oil production, and other alternative energies. 

I might also pursue a government loan progam for NEW INVESTORS (no ties to existing metals companies) into the metals industries, to increase supplies and bring prices back to realistic levels (I am mainly talking steel here).  The tragedy of the US economy is that the consolidated steel industry is now ripping off the economy by controlling production to jack up the prices. (I personally know many of the top steel executives in the USA and they would all want to perform an orchidectomy on me for saying this, but it is true).  So offer incentives for new entrants to the market...

So... GLOBALLY we might not have stagflatio, because the GLOBAL economy is in fact growing like mad.  But here in the US of A, we definitely are seeing stagflation symptoms.  But we can fix it.

I dunno, I never flated under any stags!
:D

It seems like it more and more each month. Here in Rochester, unemployment is at a 4 year high, while gas prices have actually gone down to around $4 due to inflation. I don't think the prices will stay that low for long, but it's a good indicator of just how big inflation is right now. Our dollar as depreciated even more too. So, do you think our economy will resemble it's state in the 1970's in the next decade? Or is it truly just another recession that will be a bit more like the '90-'91 dip?

While the oil worries are similar to the 70s, there are other things at work here.

First, there is world demand.  The developing world is consuming a lot more oil than before, which affects oil prices.  Second, we have a very serious debt problem right now.  Congress's eagerness to send out another round of stimulus checks isn't helping things.  The next president is going to inherit the largest federal debt and deficit ever.

Our currency devaluation via debt is going to crush us economically if we don't change course soon.

This usually happens ever four years since it's election year.

They'll raise prices so that it will make you vote Democrat and they'll bring more jobs so that you vote Republican.

And I think the Mafia is in the middle of this!

This recession will be different than that of the early 90s and the early 00's. 

It is not a perfect storm, but the US is being hit by several issues - a weak dollar, high oil/gas (though off of $147 peak), and a major credit and housing crisis.  Easy money during that later years of the Greenspan Fed, is causing some whiplash.  Real Estate is the largest invesment in the US - it is huge!!!  Unfortunately, for the first time in decades, it is cooling off.  It is a reality check.  Commercial real estate is beginning to have problems as well due to easy money.

Housing/credit will have to pull us out, so the economy will get worse before it gets better.  This may take a couple of years.  Housing will rebound when people begin buying houses again.

We failed to retain what Eisenhower believed, that the strength of the USA was in the industry of the people, not in the ability of corporations to buy and sell.  We've now been trying to live as an indebted empire for 30 years; this does not auger well. 
::)