9lives, your point 'armstrong cycle depression is defined as a...

9lives, your point 'armstrong cycle depression is defined as a period of low growth and low inflation, But we have now entered a period of low growth with HIGH inflation. this is just as bad as depression but it isn't depression it has another name......stagflation.'

What happens if inflation is mitigated by falls in commodities (food, oil, copper etc) which in turn feeds into falls in asset prices (shares, housing etc). Coupled with negative growth, you have a perfect recipe for the beginning of a depression.

Also anyone that believes true inflation (CPI) is running at 4% is naive to say the least. M3 money supply and your basket of everyday goods excluding electronics has increased a lot more than 4% over the past year. Dont believe all of those baloney statistics that the government would have you believe.