A and C - when Central Bankers speak you have to interpret what they say. There is a whole industry of people out there who speak Central Banker. The general principle is that they try to make any statement as bland, as innocuous and as boring as possible. Coded phrases are used and certain words are carefully avoided. For Merv to use "the R threat is real" phrase and to say what he did in the way he did was explosive stuff for a Central Banker. I like the fellow and think he's doing a great job.
When the Governor of the BoE is saying he thinks a Recession will be avoided then in Central Banking terms he may as well have been standing on a platform with klaxons blaring, red lights flashing and a tin helmet strapped to his head.
I didn't make Stagflation up. See the wiki reference:
http://en.wikipedia.org/wiki/Stagflation
Stagflation is a macroeconomics term used to describe a period of inflation combined with stagnation (that is, slow economic growth and rising unemployment), generally including recession.[1] The portmanteau term "stagflation" is generally attributed to United Kingdom Conservative MP and later Chancellor of the Exchequer Iain Macleod, who coined the term in a speech to Parliament in 1965
The article goes on to illustrate exactly where we are now. Stagflation leading to recession. I think that eventually we will see deflation as the house price asset bubble subsides by a nominal value of 20% and in real terms by about 40%.
The inflation Genie is out of the bottle around the world and the only painful cure is a deep recessionary period and unemployment. Here's a list - this is already resulting in food riots and if it continues could result in widespread civil unrest. Many of these countries are oil exporters..
Venezuela (22pc), Vietnam (21pc), Latvia (18pc), Qatar (17pc), Pakistan (17pc), Egypt (16pc) Bulgaria (15pc), The Emirates (11pc), Estonia (11pc), Turkey (9.7), Indonesia (9pc) Saudi Arabia (9.6pc), Argentina (8.9pc), Romania (8.6pc), China (8.5pc), Philippines (8.3pc), India (7.6pc).
WWW