Posted on 08/24/2022 8:49:29 AM PDT by bitt
The last time we had an energy crisis coupled with inflation (like we have right now) was the 1970s.
Back then, President Lyndon Johnson had begun massive spending and took on huge budget deficits to pay for the Vietnam war and his “Great Society” benefits: Medicare, Medicaid, Head Start, urban renewal, environmental issues, and new immigration policies, just to name a few.
Sure sounds a lot like today, doesn’t it?
Then…OPEC banned oil exports to the U.S. in October of 1973.
Gas prices quickly shot up 37 percent. Gas was rationed. Many stations ran out. Others locked up their pumps at night.
The ban on exporting oil to the U.S. lasted only five months—a tiny problem compared to what’s going on in the energy markets today—but by then the wheels of crisis were already in motion.
By 1974, inflation hit more than 11 percent, and the stock market (as measured by the Dow Jones Industrial Average) was plummeting.
After a few months, however, it seemed like the worst was over. Stocks soared about 48 percent starting in November of 1974.
But the bear market rally did not last.
It wasn’t long before stocks would collapse again, this time by more than 50 percent.
In total, this bear market would take the stock market down more than 72 percent.
Everyone wants to know what’s going to happen next in the markets and our economy. But few are looking at what happens historically when you pair inflation with an energy crisis—which is exactly what we are looking at right now.
Bill Bonner, co-founder of the world’s largest independent financial research firm, successful entrepreneur, owner of real estate on four continents, and business interests across the globe in over 12 countries, has prepared an analysis looking at the history and parallels of today
(Excerpt) Read more at breitbart.com ...
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Odd how there was no inflation or energy crisis two years ago.
There was a report yesterday about metal smelters in Europe, US & Canada planning to shut down due to high energy prices and rationing plans (Europe).
I expect the supply of many aluminum alloys to get really tight over a short period of time. Who knows where the prices will go when that happens?
The next step? Starvation's a commie control tactic - aluminum shortages for cans will assist the panic over future food shortages. If you can't shut down farmers - the next best tactic is to allow food to rot in the fields for lack of a long term storage systems.
Will go?
Have you priced Aluminum lately?
Already unaffordable as a raw material.
Recently made some products using finished goods I cut up, as that was cheaper than buying raw aluminum tube.
This also gave me tube that was already anodized.
US manufacturing is going into the toilet until we bring energy and materials cost down.
The “Green” hallucination is never going to get us there.
Even Japan is now saying they are going to increase their Nuclear power plants.
Eventually pretty much everyone is going to be forced to the same realization.
Some time after that we will have access to inexpensive follow-on products such as reasonably priced Aluminum and Hydrogen.
Starvation's a commie control tactic - aluminum shortages for cans will assist the panic over future food shortages. If you can't shut down farmers - the next best tactic is to allow food to rot in the fields for lack of a long term storage systems.
Depending on your age, here’s what you and/or your parents have survived so far:
Recessions———Causes
7/53-5/54: End of Korean War
8/57-4/58: Asian Flu(!)
4/60-2/61: Foreign autos entering US markets
12/69-11/70: Stopping runaway inflation
11/73: 3/75: Oil embargo by OPEC
1-7/80: Oil crisis + Inflation
7/80-11/82: Double Dip - Oil and Volker killing inflation
7/90-3/91: S+L crisis, Gulf War, Oil
3-11/2001: Dot Com bust, 9/11
12/07-6/09: Mortgage crisis
2-4/2020: Covid19
Some familiar problems keep repeating, don’t they?
The recession called “Double Dip, etc.” should show a start date of 7/81, sorry.
Hundreds of millions in the 3rd world will starve and our living standard will suffer. Pray for your fellow Americans. We ain't seen nothing yet.
Whoops!
Is = are
Yeah, that's a tough one to figure out. Maybe some economics PH.D can give us a long-winded complicated reason for the discrepancy. I know, ask Paul Krugman, the revered economic opinion writer for the NYT. He's always correct, except when he isn't.
Or you can always look at President Trump's changes in our system in just 4 years at the WH or his campaign promises that he fulfilled. Just don't look at his "mean tweets".
Oil is trending up again.
Stanberry frankly sucks. The economy is dying - so buy are researched guides and get RICH! Smart folks, certainly. Hucksters - absolutely all the time.
The coming Winter of discontent.
This is another example of converging forces I see hitting 5he fan some time this fall.
I just saw something today that 1 in 6 American households are delinquent on utility bills. Imagine what that number will be after heating season...
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