Loading ...The “Inflation” from 1934 until 1971, resulted in a deflation starting in 1971. High Interest Rates To Inhibit Spending, 5% to 21%, 1971 to 1981, a decrease in money supply.
HOWEVER, after 1971, gold backing had to be removed, the Dopey/Dollar fell and higher consumer prices, BECAUSE of prior decades of money creation. The higher prices during the 1970s made people buy antiques collectibles, and Silver Gold coins etc. 1970 to 1980 to protect savings.
Basically during the so called “inflationary 1970s” the Fed was actually deflating the money supply with higher rates, putting a headwind on the inflation of 1934 to 1971 . Causing Deflation in commodities 1980 to 2000. Gold at $250 Silver $4.
With the money supply so much higher THESE days, its way to big, can’t fit into Silver and Antiques etc. So the little guys have been plowing money into stocks and real estate.
So basically, Stocks and Real estate to me are acting like the $50 Silver and $800 Gold in 1980. If those two money guzzler behemoths ever start sliding, it will be a historic situation. Look out below. Naturally many with think its just another buying opportunity as they try to catch a bunch of falling safes.