Stagflation on the way?

I've been one of those on the stagflation bandwagon, deeply concerned about the weakness of the dollar, the likelihood of the Fed continuing to reduce rates in the face of locked-up credit markets, rising food and energy prices and persistent and rising deficits. This is a toxic macroeconomic cocktail I've written about and which has been the source of much worry. And to add insult to injury, a rash of economic statistics were released last week that generated articles this weekend that only served to reinforce my Droopy Dog attitude towards the US economic landscape. So I'm here to share the pain.

Information Arbitrage: My Gloomy Thesis Is Playing Out (18 Dec 2007)