March 22, 2026: Pandora's Box Opens (3) Regarding Stagflation?

1. About Stagflation [Taogu Ba]
   Middle East tensions drive oil prices to keep soaring
   Inflation represents rising prices
   Stagflation means the economy is weakening, with expectations being downgraded to near stagnation
   On one hand, high inflation must be contained
   On the other hand, economic growth is extremely weak
   Inflation expectations are being raised
   But growth prospects remain bleak
   This is what economics calls stagflation
   That is, the coexistence of economic stagnation and inflation
   To curb inflation, policy tightening is needed
   This could push the already fragile economy into recession
   If efforts are made to maintain growth, it could lead to runaway inflation
   Iran strikes Saudi Arabia and UAE oil facilities
   Bringing stagflation from expectation into reality!

2. The US-Iran Conflict: Yu Yan Yu Lie
   This round of global upheaval
   Came so quickly
   The most direct trigger
   Is the current US-Iran conflict
   Iran directly blocks the Strait of Hormuz and the Red Sea,
   Two major global shipping arteries, directly shut down
   Causing chaos in global trade circulation
   Based on weekend reports,
   There’s no sign of any easing at all
   If Tete really chooses to seize islands,
   It will lead countries to rapidly raise interest rates
   Everyone knows what raising rates means

Warm reminder:
Having experienced countless storms, I am a very optimistic person,
But facing such difficulties, I also start to feel anxious
In an unpredictable future, not just the stock market,
In reality, we should also save expenses, live frugally,
Cash is king, don’t invest lightly
In June, I wanted to buy more cars for travel,
Better to save that money!
Putting all that aside,
Living in our country is truly a blessing!
Next week is really important,
Let’s talk about it!