Stagflation - the New Sexy Word

I am always amazed at how the most obvious things are not acknowledged until they stare investors straight in the face. Did it really take today's CPI report for people to realize there is inflation? I've only written about 100 entries dealing with inflation that is all around us and in fact increasing.... it always shocked me how Wall Street which is supposed to be the center of the brightest mind, does not notice things until it is 2 feet away.

Today I am reading "stagflation" everywhere I go... wow. Really? Interesting concept ;) Stagflation.... hmmm, never thought of it [Oct 2 - Dean Foods Cutting 600-700 Jobs Because of Imaginary Inflation] Back then people were not even acknowledging a SLOWDOWN, let alone inflation. We were still coming off a 4.9% GDP quarter in early October... stagflation? Laughable.

On Nov 16th I wrote [FedEx Tells us the Economy is Slowing - So is Starbucks]

Stagflation is going to be on the tips of many pundits about this time next year. Because the inflation we face now is not due (that much) to the business cycle, but simply a world of shortages.

So it seems the first pundits are finally getting on the bandwagon - half a year late... just like the first ones began acknowledging a recession was actually possible in December 2007 - does ANYONE actually forecast ahead of times nowadays? Or only when reports smack you over the head relentlessly with data will anyone face facts? Amazing.

Anyhow, in mid March we are going to see another Fed funds cut and another comment such as "inflation will be contained and will subsist as the economy slows"... blah blah. I would really love to see oil at $120, wheat at $15, gold at $1100 etc at the time so we can truly all just take the last shred of credibility from this Fed, and stomp on it. The lack of truth telling is simply amazing.