Threat of Stagflation Looms as Prices Rise Despite Bad Economy
Reports are showing that inflation is rising more quickly than
expected as growth is slowing. This shows that the United States
is getting closer to stagflation, a period of slow growth, high
unemployment and higher prices.  August 19, 2011 By David
Zeiler, Associate Editor Money Morning  Few are willing to
acknowledge the threat of stagflation, but reports showing
inflation rising more quickly than expected - even as growth is
slowing - indicate that this scourge of the 1970s may be
stalking the U.S. economy.  Every economic report nudges the
United States closer to the definition of stagflation - a
condition marked by slow economic growth, high unemployment, and
soaring prices.  Although many economists believe the sluggish
economy will moderate inflation, that's not what happened in the
1970s.  "The belief that you can't have inflation and high
unemployment is nonsense; we had 25% inflation in the U.K. in
1975, in the middle of a recession," s