I do, too. Gas lines as far as you could see down the road, and people fighting over places in line. Today, it would be like a zombie apocalypse..............
***oil went from $3 to $12***
I remember those days! Gs went from 30 cents a gallon to 45 cents and America went berserk!
***In 1973-1974, what the Fed did through monetary policy was to fuel the inflation that occurred in the late 70s and became virulent.” ****
I remember those days! WIN! (WHIP INFLATION NOW) buttons were being made, and the price of them went up, wage and price controls in place.
Then under Carter the interest rate hit 21%! The Unions a few years later blamed Reagan.
The only advantage of high interest rates is I got lots of high pay raises, even though I could not buy more with the inflated money, but I had bought a house a few years before at 7.9% interest. The high inflation rate helped me pay it back with inflated (worth less) dollars.
Then the crash when the Savings and Loans and banks went broke.
A few years back as I watched the price of homes skyrocket I told my wife that we were heading for a fall just like the 1980s. It happened the year I retired and I kissed my 401k good by.
So have we got Ben Arthur Burnsnanke running things now?
I posted this elsewhere but thought this might be a place for one of the many brilliant FReepers to weigh in.
So what I’ve been trying to figure out in my pea brain is this:
What good does it do the Federal Reserve, a private corporation, to print money and thus make the money they have and trade in worth less?
What good does it do them to have 5 Trillion dollars worth of debt that is becoming worth less and more prone to default every day?
I could print money, you could print money but it isn’t worth anything. You can print more stock but eventually it becomes worthless and your share holders lose confidence. In the long run making your stock worth less makes it worthless.
So what is in this for the Fed? What am I missing?
bttt
Really?