The 1970s Compared To Today

in Threespeaklast month (edited)

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Many are comparing the economic events of today to the 1970s. This is something that people believe is applicable because of the idea of massive inflation.

In this video I discuss how the two are completely different and how there is little that resembles the 1970s.

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The Fed will continue to do what they do until it no longer works. I can still see a time where the legacy system mess will need to be reorganized. The problem with smart people is they will never admit when they are wrong. And ultimately the people suffer from their centralized planning. Thank goodness for blockchain. :)

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The central banks are still stuck in the Keynesian model which, over the last 30 year is proven not to work.

Sadly, they keep resorting to that in spite of the failure.

Politicians will never admit they are at fault, hence just creating more destruction as they go.

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I fully agree with that view. What I have a hard time seeing is what the endgame of this situation will be. Sure, crypto will increasingly be adopted. But what I mean is what is going to happen in the legacy economy.

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They will end up having to clear the debt out. That is going to be painful. I would expect to see Europe leading the way on that end.

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Europe is definitely in the deepest trouble of all of the developed world. German and French banks are going to take huge losses if they have to write off much of the debt taken on by many of EU countries with heavy debt burdens. Germany does not have too much sovereign debt but France is worse off.

But once that process is over the question remains whether the monetary policy of the ECB will change.

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I agree they are backed into a corner as they are in a liquidity trap right now and have been for decades. The 1970's compared to now is just not the same and isn't a quick fix because of how the monetary policy has been relying on debt and the spend is just getting more out of control each year.

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I had to go look up what the Keynesian model, due to I didn't know or remember what it was. So learned something new today. In the late 1970's I was graduating high school and working. I do remember that I had to pay .99 a gallon for gas for my car. Wish we had lower gas prices now. I think things today might get worse before it gets better.

The problem I see is that there is no solution. People had the most hope in 2018 when Powell decided to raise rates but the market threw a fit and everything went down the drain. So he has decided not to raise rates but to prop up the market by any means. Its also why the stock market is so irrational right now.

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I love to see old sci fi music that imagine today's times. Than I look to today's sci fi music imagining the future. And in some cases the past "future" seems to be happening in the present, so that is quite amazing.

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At least the 70s were cooler than today. Good thing we got rid of communism ( the real stuff not what you call commies in the States :P )

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"History never repeats itself, but it often rhymes". I don't exclude possibility that we might see 1970s economic phenomena like stagflation in near future, but when they happen they will happen in a time and in a way nobody expects it.

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