Loading ...Things are totally different these days. After 1971 Because of excessive money printing 1934 to 1971 we lost a lot of our gold reserves from trade deficits, the gold backing had to removed from the Fed Note Dollar. Because they were backed at $34 but Gold was worth $140, we were getting screwed.
The increasing money supply (inflation) 1934 to 1971, on top of dropping the gold standard led to very high prices during the 1970s, as the fed was contracting the money supply (deflation) with higher rates to 21%. The lagging higher prices. The so-called inflationary 1970s was the lagging result of 1934 to 1971 increasing money supply.
So after 1971 they started importing cheaper imports to get inflation numbers lower. So they can’t do that again, because they already did it and its still ongoing. I saw some tires yesterday made in Thailand.
On top of all that the US Consumer was doing very well during the 1945 to 1975 era so the stupid high rates agenda and the job losing imports were more affordable. The US consumer declined 1975 to 2008 as the blow off bottom. The gov’t and Fed have just been giving people free money after that, even GM got a hand out. And the Covid made more hand outs available.
Paper counterfeit money that works is a great thing, many things can get accomplished, like moon landings and new telescopes in orbit. But naturally the taxed paychecks lost value after 1971 and unfortunately the money managers neglected adhere to Minimum Wage and Maximum Hours act of 1937.
That all means the OLD powers that be were a lot smarter than the more recent ones. And simply creating higher interest rates are not a solution in my book. Its far easier to BLUNT or over ride higher costs with higher profits and higher wages. In fact if the wages OUTPACED inflation, everybody at the low end would be better off. The system can’t survive if low end wages lag inflation.
There is something fishy going on with them bringing in all these refugees. Is there a plan? To block imports? Will the USA start producing its own consumer products again? And we have a nice new wage price spiral? LOL.