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To: SaxxonWoods
The last time inflation was this high, mortgage rates were around 14%.

In the 1970's inflation was "only" 6.8% for the decade. But the problem was that was an entire decade with higher and lower inflation. That's what caused Volker (Carter appointment) to kick up interest rates. First we have rampant inflation, then we get higher interest rates or depression or hyperinflation. Those are the three basic choice. Then inflation comes down. Looking at the tail end of the high interest rates period is not instructive. We are just getting started here.

50 posted on 02/15/2022 8:38:56 AM PST by palmer (Democracy Dies Six Ways from Sunday)
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To: palmer

“First we have rampant inflation, then we get higher interest rates or depression or hyperinflation. Those are the three basic choice.”

You left out the most common result. A garden variety recession.


52 posted on 02/15/2022 8:44:05 AM PST by SaxxonWoods ("If you see no reason for giving thanks, the fault lies in yourself." - Minquass)
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