Your comment about job losses in December is right on the money. I am right now about to look at all the revisions the BLS did to last year’s unemployment data. I was listening to a UK radio show podcast called “Wake Up to Money” this morning (excellent show). On the show, they had a guy, Chris Thornburg, who claimed that the BLS just released data showing we have been losing jobs for a number of months as they revised the 2007 employment numbers down.

I intend to also soon address the issue of Credit Deflation. My feeling is that we will see stagflation, but only in the short term. The credit deflation will lead to money supply contraction and deflation in the medium and long term. That’s why this whole thing is so troubling.

If they don’t have growth, expansion, profits, and at least temporary employment then, when will they?

Some economists are also raising red flags about inflation. There are even questions as to whether we are headed into stagflation, that intractable situation not seen since the 1970s.

Stagflation really stumps the economists. In fact, the combination of both inflation and recession (or stagnation) at the same time is, in theory, impossible under classical models of economic theory.

This economy is in more trouble than the most people realize, and the general public knows it’s in trouble.