Stagflation?

All right enough already! Whoever is pushing the buttons between inflation and deflation please step away from the controls because your just causing stagflation. I think the key to recovery is the US Dollar. Did the US dollar cause the mess in the derivatives market, the bubble in real estate, or easy credit causing defaults and bankruptcies across all sectors? The answer to this question my not be that simple or could it be? It all depends if you follow Keynesian or Austrian school economics. 99.9% of college universities teach Keynesian economics and the rest teach Austrian. Most of the talking heads on T.V. are Keynesians and they're wrong 99.9% of the time. It is named for economist John Maynard Keynes. It's an economic theory which advocates government intervention, or demand side management of the economy to achieve full employment and stable prices. Great theory? How well has that worked out for us? Austrian Economics is a school of thought that is associated with little government interference in the marketplace, the primacy of property rights and is generally associated with libertarian ideology. It also advocates the backing of money by gold or silver. Hmmm. Which one sounds better to you? Socialist or Libertarian.

Now to prove my case......look at the US Dollar chart and see the great job the Keynesians have done managing the dollar since 1983.