I noticed that no matter HOW much the Kudlowians want to spin goldilocks and say we arent in recession, we arent in the 70's, and we are in the 1930's, the SAME variables are showing up now in our economy.
1. An unpopular war that has lasted over 5 years.
a. Low employment and massive interest rates reaching 19% (70's)
b. Employment levels today which are ACTULLY 12% (not 5.7) since the government took out people NOT looking for work, and people with part-time jobs who are LOOKING for full-time jobs.
3. REAL inflation rates (including oil, rents, and food)
a. 18-19% (70's)
b. 12-14% (Now)
4. Welfare programs in high gear
a. LBJ's Great Society
b. SSN, Medicare, Prescription Drugs
a. Casar Chavez (70's)
a. NEA promotes radical change to education system, and writes pamphlet on use of Ritalin for students - (Education for the 70's Pamphlet)
b. one in four children in schools now on some psychotropic drugs
7. Oil Crisis
a. Oil embargo
b. Oil Prices and Peak Oil Theories
8. Gold and Silver
a. Gold reaches $850.00 in 70's currency value
b. Silver moves with a volitile ratio to gold
a. 1973 Yom Kippur War
b. Israel and the Middle East today...
An interesting fact to look at is the ratio of the silver and gold prices. In the past 100 years, this ratio has widely fluctuated. The lowest being 22.93 in 1970 and the highest of 101.63 in 1990 when silver was $4.17 and gold at $423.80. Taking the average of the lowest and highest you get a 55.69 ratio. At today’s silver and gold prices, the ratio is 53.88.
One last thing here... in 1980, the Hunt brothers with Arab partners attempted to corner the silver market. They made ONE mistake however... they used COMEX and bought ONLY paper silver.
The Hunt brothers just sold their oil conglomerate and are hinting AGAIN at going after silver, BUT, they are intending to BUY physical silver, and THIS will KEEP the government from defending against them through the use of shorts on the Comex as was done back in 1980.
Paper Comex is as bad as fiat currency... they can print ALL the volume they want.
Anyway, there are probably many other areas where the economy of the 1970's and today have striking similarities.
It took 7 years from the 1973 oil embargo to reach climax in 1980 when interest rates hit their highest... so in reality, raising interest rates doesnt necessarily mean PM's go down.