Loading ...Real estate? Stock values? Medical insurance? Hospital stays? Police salaries? Around here its $167,000 k average, which is what’s needed to be middle class these days after taxes.
Back in the 1970s when Paul Volker raised rates to 21% from 6% to stop “inflationary psychology”, they blamed “high wages” of the United Auto workers Union etc for causing inflation. Meanwhile it was caused by money creation 1934 to 1971. Low rates did not cause inflation, or the blame, meaning high rates were not the correct cure.
After 1971 high rates pulled money out of circulation, into dead money CDs Bonds etc. Can’t be spent into the economy. Deflationary ’70s really, even though prices got higher. Without higher rates as a head wind, soaking up money in circulation, climbing prices would have been much much worse.
Well, if the bozo Bankers and their Media blamed high wages for the higher prices of the 1970s? They why don’t they promote and or cause higher wages to bring back “inflation”? Isn’t Gundlach supposed to know these things???