Recent events have not finished percolating through the economy. We have seen only the beginning of price hikes reflecting oil costs, and the slowdown has reduced government revenues. The result of the latter will be Treasury offering bonds to cover the deficit, and having to set rates high to sell them in the weak-credit environment. So we stand a good chance of seeing the 70s stagflation again, for the same reasons, a war and increased oil prices.

Not necessary if we enhance entrepreneurship and employment by promoting small-business energy projects, along with large-scale installations. We'll be simultaneously spending less on imported oil and more at home, and reducing upward pressure on refined oil products.

We considered some ideas at:
http://tpmcafe.talkingpointsmemo.com/talk/2008/07/simple-economics.php

Not all of us are in our 20s. Yes, this is easily as bad for people as the 70s or 80s. Inflation is killing spending power. And since energy costs make up so much of household expenses, it's hurting people a lot. Maybe worse.

"...the economy will grow about 1.5 percent this year and is projected to grow at over 2 percent next year."

I'm sorry you've bought into this fallacy.

Time for a reality check?

http://www.shadowstats.com/alternate_data
http://www.harpers.org/archive/2008/05/0082023

Owning a small steel supply business I have watched my cost of goods sold double since January 1st while tonnage shipped has decreased by more than half. You haven't seen the coming inflation at the consumer level yet. Interest rates are low but credit is severely restricted so the rates might as well be 12%. Think stagflation if we're lucky with a high risk of far worse.

This is not a normal business cycle correction. This is the result of a 1/4 of a century of financial market and large (fortune 500) deregulation concurrent with chronically declining real wages, job security and benefits. Our dollar is half the value of a Euro, our food supply is toxic, baby toys are coated in lead, healthcare is unaffordable, our young men don't know who they are and, today's mother's buy their 12 year old daughters t-shirts that say "Boys are Stupid, throw rocks at them".

Soon, the only tangible goods made in this country will be hamburgers to sell to each other on our lunch breaks from our jobs of pushing one pile of paper to the adjacent cubicle; over and over again.

But, what the fuck, you say, theoretical growth is 1.5% and next year is projected to be 2%. Tell that to the people standing on street corners with signs saying "Will Work for Food" that will be endemic by next summer. Oh, and don't forget, carrying concealed firearms is now legal in most states in the middle of the country.

Growth is 1.5%!

WHOOOOP DEEE FUCKING DOOOO!!!!