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OK, firstly, define stagflation: Stagflation is an economic illness wherein inflation combined with stagnation locks a society into slow-to-negative economic growth and rising unemployment, invariably including recession. A condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices, or inflation. Stagflation occurs when the economy isn't growing but prices are, which is not a good situation for a country to be in. This happened to a great extent during the 1970s, when world oil prices rose dramatically, fueling sharp inflation in developed countries. For these countries, including the U.S., stagnation increased the inflationary effects. This looks like what we are going to be experiencing soon... given this situation, will you still buy a new car? This is unlike the financial crisis we face previously where prices are cut until so low that people can still afford to buy... prices of everything are increasing nowadays if you do the grocery or eat out.. A report in Boston USA said to START SAVING NOW, Stagflation is around the corner... Starbucks is going to wind up some of their branches in USA and thousands are going to be out of jobs. Big companies around the world are facing problems and are cutting jobs to save costs. Countries in Asia are also experiencing the high costs and you can see them going on the roads asking the govt for help. This is something very real. My 2 cents: Unless it is a necessity, do not spend unnecessarily. If the movie is not a must-see, well save the money. East Coast Park or any parks are just as good for an outing. For family, spending time together doing housework or simple projects (making a cake, cook up a dish) can be just as entertaining, there is no real need to spend money outside. Buying a car is a long term investment (liability), do you really NEED a car (Must Have) or is it consider a luxury (Good to Have)? Dun forget if you can't pay off the instalments, the bank will definitely go by the book... so please save up and wait till the storm blows over... Thank you Dave

Let's guess who is the next one to come out to tok about the wage hike & inflation thingie.....