Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
No it didn't. Carter's high interest rates failed. What worked in the early 80's was giving people more money to spend via the Reagan tax cuts.
Revisionist history. LOL. Tax cuts are great but do not tame inflation.
First of all inflation began under Nixon, Ford and Carter and interest rates were high during that time. But like now not high enough. In early 1980 Fed Chair Volcker raised the fed funds rate to 20% which started to bring down inflation. It was called the Volcker Shock.
The Carter interest rates hiked failed because they were weak and not high enough. Volcker raised the fed funds rate to 20% which finally broke inflation. It began to fall finally falling under 10% by the end of 1981. It was falling for a year and a half before Reagans tax cuts kicked in.
Since we had stagflation we needed to raise interest rates and cut taxes to end it.
Simply put, inflation is an increase of the money supply.
We get to print money out of thin air, and the global demand of dollars remains high because the USD is the WRC used to pay for commodities and goods.
So now all these dollars are floating around outside the US, in reserves in all countries, buying/holding trillions in US debt. What do you think happens to the value of those dollars?
Why do you think foreign countries holding those dollars told us to cut it out with the funny money business? What happens when everyone stops buying our debt and those dollars come home? You think interest rates are high now? You ain't seen nothing yet.
We're in a world of hurt when de-dollarization kicks into full gear. Most Americans aren't even aware of it, let alone prepared to deal with the consequences.
Our lifestyles have been so inflated because of American exceptionalism, because we think we're the greatest country the world has ever seen, because of entitlement, when in reality, the world has been subsidizing us for decades.
They work hard and produce actual, tangible goods that requires real labor, while we pay them essentially with monopoly money.
Simply put, inflation is an increase of the money supply.
We get to print money out of thin air, and the global demand of dollars remains high because the USD is the WRC used to pay for commodities and goods.
So now all these dollars are floating around outside the US, in reserves in all countries, buying/holding trillions in US debt. What do you think happens to the value of those dollars?
Why do you think foreign countries told us to cut it out with the funny money business?
We're in a world of hurt when de-dollarization kicks into full gear. Most Americans aren't even aware of it, let alone prepared to deal with the consequences.
Our lifestyles have been so inflated because of American exceptionalism, because we think we're the greatest country the world has ever seen, because of entitlement, when in reality, the world has been subsidizing us for decades.
"Why do you think foreign countries told us to cut it out with the funny money business?"
Who cares? How much yuan being held in foreign reserves vs USD?
You seriously think the DXY is going to hold these levels in the mid-long term? Sure, everyone is flocking to the USD now because it's the safe haven asset and because of high yields but I don't expect that to hold up in the long run.
Who cares? How much yuan being held in foreign reserves vs USD?
You seriously think the DXY is going to hold these levels in the mid-long term? Sure, everyone is flocking to the USD now because it's the safe haven asset and because of high yields but I don't expect that to hold up in the long run.
Per the IMF, "Official Forex Reserves by Country" COB 2022 (the new set should be out any day FWIIW).
What is it going to take for you guys to drop that nonsense?
So what's your definition of inflation?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
