The inflation numbers were calculated differently during back then. They were reformulated in the early 1990s.
If we use the method from the 1970s, we have about 8% inflation, not 1.5%.
So, if we use interest calculations from the ‘70s, what do we have really? I recall they peaked at around 21 percent then. And the 10.7 percent unemployment rate then would be ...what today? Those were rhetorical questions.
We knew we were in an inflationary cycle as soon as gold started going up...and speaking of different calculations, gold prices would have to go up to $2,200 in todays dollars to match the peak during the recession in the 80s. Not saying it won’t happen. Jut wondering why everyone seems to be so anxious to jump the gun.
Current inflation is 4.5%, not 1.5% according to CPI. Surely you think we should include other items besides food and shelter?
Exactamundo, which is why I'm in the market. I earned over 13% last year that way beating inflation by 5% and my savings account by 10%.