Thread on Paul Volcker fighting 70s #inflation and what can we learn from it today.
Government money printing was out of control in the 60s & 70s so as the US was printing their way through elections, foreign investors started dumping dollars and wanted their #gold
Government money printing was out of control in the 60s & 70s so as the US was printing their way through elections, foreign investors started dumping dollars and wanted their #gold
Then when #inflation took off after @WTF_1971 money supply 🚀 increased 100% from 1970-1980
As we went off gold standard and onto the #GreatFiatPonziScheme Paul Volcker knew that raising rates wasn’t enough to fight inflation the money supply had to decline.
As we went off gold standard and onto the #GreatFiatPonziScheme Paul Volcker knew that raising rates wasn’t enough to fight inflation the money supply had to decline.
Towards the end of the 70s since #inflation was on going for the decade the government finally decided to reduce the deficit realizing that was the cause of the #inflation & along with higher rates finally had #inflation come down
The dollar in that decade lost 50% of its purchasing power while interest rates went from 3% to 15% so even higher interest rates couldn’t stop the dollar from losing 50%.
Now fast forward to 2022 the same money supply M1 that increased 100% from 1970-1980 that caused the worst #inflation back then has increased 425% in 2 years with rates at 2% today and highest inflation in history.
Prepare accordingly.
Prepare accordingly.
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