Please welcome stagflation to the party

Signs of stagflation are abounding in our economy, as many predicted would be the likely outcome tied to the Fed's frantic attempt to save the financial markets by slashing interest rates.  With a continually weakening economy and inflation taking hold in commodities across the board it looks like our friend stagflation is here for the time being. From Bloomberg on the phenomenon: Builders broke ground on 975,000 homes at an annual pace in May, the least in 17 years, and construction permits fell, the Commerce Department reported in Washington. Meanwhile, the Labor Department said producer prices jumped 1.4 percent, more than economists forecast. A further report from the Federal Reserve showed industrial production unexpectedly dropped 0.2 percent. "The latest round of commodity-pri