I lived through the 70s. Except for the interest rates, we are already there.
The rat calibrators at MSM let Biden get away with taking food and gas from the inflation figures. Just outrages. They will pull the same BS to keep it from being called recession.
The longer Jerome Powell delays raising rates, the longer inflation will persist. Powell doe not have a pair like Volcker had. So prepare for many years of double digit inflation.
I wonder if we can/will get there with the interest rates too. Obviously they need to go much higher to really rein in inflation. But that will skyrocket the deficit as federal interest payments to cover its debts go through the roof. The government _can’t_ tolerate the kind of interest rates we had forty years ago. But if we don’t get those interest rates, what tames inflation?
It may not happen this cycle. We might pull out of our nosedive and tell us everything is OK. But I figure at best we’ll have on more economic cycle before this happens again, and the inability to sustain high interest rates leads a crisis where inflation spins out of control and we get hyperinflation.
(That’s one reason I refuse to sell my bitcoin despite the overwhelming negativity lately - it’s dollars that are in a critical condition sometime fairly soon, not BTC.)
Me, too. It was a horrendous time, but at least I was working and my raises were keeping me somewhat above water. Now I’m retired and watching our net worth go down and down and down. Fifty years of financial planning down the toilet.