Loading ...So, what’s the difference between these days and 1970s? The 1970s were the LAST years of domestic production of consumer products. We made all our own needs, plus the moon landing and the Vietnam war. Plenty of work to do and everyone worked over time.
People in their 20s and 30s had tons upon tons of discretionary income. First came the gold de-peg in 1971. The “new” so called free floating Dollar dropped, prices inverted higher, everybody saw inflation, everybody wanted and got pay raises to match cost run ups. Employers had no choice. Too much work to do, and not enough employees.
The Gov’t fake media blamed a “wage price spiral” and proceeded to get inflation numbers lower with cheap imported consumer products. Many people ’70 to ’80 were buying inflation hedges like stamps coins antiques etc with their discretionary income.
Wages fell by half after that, wives had to work, 40 hours to 80 hours and these days there is a LOT less DISCRETIONARY fun income to spend. Its hard to sell anything these days unless its really under priced. To match their under priced income or the under priced import.
Note: The rising prices 1970 to 1980 was due to excess money creation between 1934 and 1971. After 1971 (deflation with climbing prices) the Fed was actually sucking money OUT of circulation with 18% interest rates. Mexico at that time had 35% rates. People were selling everything to buy an 18% CD. Dead money, locked up, can’t be spent.
Why do you think rates are so low today? Just the opposite situation. They dropped rates to make us SPEND it. “Oh, you have no money to spend”? “Ok then, we’ll lend you all you want to spend, with no money down”. “If you can’t pay it back? Don’t worry about it, its only paper” “Your fellow taxpayers will bail out the banks and General Motors”
Silver was historically “the poor mans gold”, but the poor men got poorer thanks to imports. Gold is now bought by the more well off. Note how Gold has outperformed silver.