Posted on 06/14/2021 4:09:14 AM PDT by Chad C. Mulligan
Nixon was worried about trade deficits and a deteriorating balance of payments. He rejected the advice of Volcker, then treasury undersecretary, and the Fed chairman at the time, Arthur Burns. Instead, Nixon closed the gold window, meaning foreign governments could no longer exchange dollars for gold. The value of the greenback fell like a stone.
So as the value of our currency declined, prices denominated in dollars sky-rocketed. We printed bad money and too much of it, and that’s the definition of inflation. Excess money in relation to demand will do it every time. Lack of value will do it every time. In 1973, Nixon abolished all remaining remnants of the gold dollar exchange system.
Inflation soared, first hitting double-digits while Nixon was president. All commodity prices, including oil, sky-rocketed along with just about everything else. On top of that, income tax rates were not indexed to inflation in those days. So higher and higher inflation drove middle-class Americans into higher and higher tax rate brackets. That had a huge braking effect on the economy.
(Excerpt) Read more at nysun.com ...
In the end, they'll pin as much misery as they can on Trump...
I can’t remember all the details of the different presidencies, but I remember something of the situation when Carter was in with his price & wage freezes. At least many wages were frozen, but there was a way around some of it with prices. The end result was not good. Something similar seems to be happening now. Of course most of us already knew Biden would be a disaster.
Lawrence Kudlow was in the Trump Admin.
Most of the problems started under LBJ and go worse under Nixon. Those two are most to blame.
Carter is the least responsible, and with his appointment of Paul Volcker to the fed could be given the credit for solving the inflation mess.
“where was all of this money spent?”
Good question. Mostly in politician’s (and their cronies) pockets. There needs to be an accounting and justification for $ expenditures. When Biden says 1 1/2 trillion for infrastructure it should be itemized how exactly will it be spent. You can’t get a loan by telling the bank I need it to buy “stuff”
OPEC did. But Carter helped.
As I remember Nixon was blessed with a leftist congress which taxed and spent like drunken sailors. Nixon is known for “sequestering” congressionally-mandated expenses until the Supreme Court ruled that he had to spend them.
“””Mostly in politician’s (and their cronies) pockets. There needs to be an accounting and justification for $ expenditures. When Biden says 1 1/2 trillion for infrastructure it should be itemized how exactly will it be spent. You can’t get a loan by telling the bank I need it to buy “stuff””””
Thanks for the dittos. Over the past 40 years our Federal politicians have, on average, spent $750 billion each year on ‘something’ and those ‘somethings’ were funded by issuing $750 billion of government bonds (IOU’s)each year.
And now we have a $30 trillion national debt and nobody can point to any ‘visible improvements’ in our country that these trillions were spent on.
No, what has happened is like the senior citizen who does a reverse mortgage on his fully paid house so he can go on an ‘around the world’ cruise.
“We’re all Keynsians Now”
They keep inflation low now by removing anything from the calculation that would make it go to high.
It’s true that Volcker understood what needed to be done — raise interest rates.
But it took Ronald Reagan to encourage him to actually do that.
No fan of Carter am I, yet let’s not forget two Nixon-Carter items: 1. Nixon attempted to impose price-controls to cut the inflation he had created; 2. Carter deregulated the airline industry. A third item is that both began the chumminess with the Communist Dictators of China.
Doesn’t matter.
Presidents are hung with the economies over which they preside.
Full stop.
thus proving the failure of universal suffrage ...
I have tracked Fake News and Deep State all the way back to FDR.
There are indications it goes back as far as 1880 when the media working with the Socialists tried to drop Communism on the USA.
Most of it thrown away pandering to leftists here and abroad.
Sixty years and more of democrats (with the help of RINOs) throwing trillions of taxpayer dollars away pandering
to their Special Victim Groups to buy votes and they still have to cheat to win a presidential election.
.
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