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To: seowulf
...going off the gold standard in 1970 created market chaos.

We could say that since chaotic gold market prices didn't exist in the U.S. before the 70's because the gold market wasn't legal.  Other countries had chaotic gold prices and after the 70's Americans were allowed to have 'em too.  Kind of like saying Obama selling out to Castro 'created' Cuban cigars for Americans...

11 posted on 01/18/2015 1:12:47 PM PST by expat_panama
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To: expat_panama

That’s true. A gold backed dollar should of course track gold.

I was more observing the increased noise/volatility in the graph following 1970.

Adding the variables of money supply manipulation and interest rate manipulation by the central banks increased the “chaos” in the stock market.

Prior to 1970 it seems that stocks increased steadily based on actual growth rather than fickle interest rates and monetary policy.


13 posted on 01/18/2015 1:35:18 PM PST by seowulf (Cogito cogito, ergo cogito sum. Cogito.---Ambrose Bierce)
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