US Fed Hikes interest rates by 3/4 of a % point

[Joe]

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[Oerdin]

Not nearly enough.

 

[Joe]

Not nearly enough.

How much do you think it should be Oerdin?

 

[Oerdin]

At least the inflation rate.

 

[Joe]

At least the inflation rate.

6-8%?!?

 

[Oerdin]

At least for a wwhile. In 1980 we had to raise interest rates up to 20% for a brief period in order to break the inflation caused by Carter and the Democrats. We are back there now.

 

[Joe]

At least for a wwhile. In 1980 we had to raise interest rates up to 20% for a brief period in order to break the inflation caused by Carter and the Democrats. We are back there now.

I notice that liberal newspapers like the New York Times or Washington Post deny that there is any similarities between the 1970s and the 2020s. Maybe to downplay comparisons of Biden with Jimmy Carter.

But...having lived back then it seems very similar to me. Even the underlying causes. Almost like a repeat of what went on back then too. The 70's was marked by very choppy growth, short recessions culminating in a very large 1 in 1982.

Maybe the Fed will avoid a big 1 for the time being but eventually the floodgates are gonna open & they wont be able to hide the fallout.

There were 3 major causes of 70's inflation. End of Vietnam War. The oil shocks & the hangover of social spending of Lyndon Johnson's great society initiatives in the 1960s. Plus Nixon took the USA off the gold standard

 

[Oerdin]

Mortgage rates are now up to 6% or 5% if a VA loan. A year ago 3.25% was common.