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Re: History: Prime Rate peaked at 21.5% in 1980. 

By: monkeytrots in POPE IV | Recommend this post (2)
Sun, 26 Feb 17 2:46 AM | 80 view(s)
Boardmark this board | POPES NEW and Improved Real Board 		Msg. 21564 of 47202
(This msg. is a reply to 21554 by Zimbler0)
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Agreed on the perfect storm, Zim.

However, wage and price controls were and are pure communist-facism. Totally unacceptable.

RMN may have had no choice but to take US off the gold standard - but, irregardless, he opened the floodgates for the printing binge that continues to this day.

At the time, gold was $35 to $36 exchange rate.

Would not a simple "We are adjusting the exchange rate to a fixed XXX.XX per ounce" been far more preferable ?"

Yeah - it would have been viewed, correctly, as a basic devaluing of the dollar.

Simply taking us OFF the gold standard was a way to avoid appearing to 'devalue' the dollar - BUT that is exactly what was going on.

Just like FDR - in so many ways.




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The above is a reply to the following message:
Re: History: Prime Rate peaked at 21.5% in 1980.
By: Zimbler0 in POPE IV
Sun, 26 Feb 17 1:51 AM 		Msg. 21554 of 47202

>>>
Not the UN-Constitutional methods of Richard Hussein Millhouse Nixon - controlling 'wages and prices' - AFTER RMN removed the 'gold standard' - which led DIRECTLY to the high money supply (ie.Fed Printing Money) during Nixon's term(s) and that of Carter.

The end result was THE REASON REAGAN WAS ELECTED - inflation above 20% and interest rates above 20%.
>>>


I agree that the stagnant economy, high inflation, and
high interest rates led to Reagan's election.

However, the dimmocrats bequeathed Nixon a 'perfect storm'
of deficit spending programs . . . Kennedy's 'Man on the Moon'
Space Race, Johnson's Vietnam War, and Johnsons's 'War on Poverty'.

Zim.

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