Loading ...When Volker started raising rates inflation was well under way and the arguements as to why were all over the place….many said it was due to what they called WagePush inflation, where worker demands for higher wages caused it…..we can now see from afar that it was Opecs quadrupling of the Oil price that was the real cause….all the rest, such as WagePush etc were just side effects.
Debts were not a factor as such, debt was still considered bad news/risky and very lucky people lent money to Volker at @ 18 % for 30 years !!!! If u had too much debt, well u deserved what was coming.
Nor did u have governments trying to cause inflation, like now…where it has been constant for over 10 years vie QE aka money printing…..without much effect…but now u have oil prices exploding, driving energy costs, just like in the 70’s and even worse governments secretly colluding to make Fossil fuel prices 4 or 5 times recent prices, in order to make renewables look vaguely economic…..this has now triggered real inflation…..my electric bill is now up 250 % from last year and I have had good deals…
Farm input costs have gone mental, food prices are yet to reflect anything like the input costs, already around, ergo Food is going only one way …up……wage demand has yet to occur, so far price rises are being absorbed, but cannot be far off.
Basically the perfect inflationary storm is brewing, but this time we have debt mountains that are beyond comprehension and a Woke World, that will not allow any pain/hardship, neither of which allow the kind of solution Volker used…..if that ain’t a recipe for hyperinflation, then what is.????