Stagflation Threatens Western Economies – Gold A Bubble, To Correct Or Go Parabolic As Per 1970’s?

Tuesday, August 16, 2011
By Paul Martin

by Gold Core
ZeroHedge.com
08/16/2011

U.K. inflation accelerated more than economists forecast in July, as the cost of food, clothes, footwear, housing maintenance and rent increased. Negative real interest rates are getting worse as the BOE has kept interest rates at a record low of 0.5%.

5% inflation in the UK is expected in the coming months prior to hopes that inflation will abate. UK economic activity grew at just 0.2% in the second quarter of the year suggesting an annual rate of growth of 0.7% over the past twelve months.

Economic growth is faltering in all major economies with data this morning showing Eurozone and German GDP growth slowing.

Eurozone GDP rose 0.2% from the first quarter, when it increased 0.8% while German GDP growth fell by more than expected in the second quarter, dropping to a derisory 0.1%.

Double dip recessions involving inflation and therefore stagflation seem increasingly likely.

The Rest…HERE

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