“The key is to pay attention to the Fed. Volcker put the Fed into inflation mode, and big-spending Reagan only helped the inflationary cause throughout the 80’s. Fast forward to 1987, and in comes ‘The Maestro’ Alan Greenspan as Fed Chairman. Within weeks of his taking over, the Greenspan Fed began tightening credit to stem the Volcker inflation that began with the Mexican bailout in 1982. Now, those who understand the Austrian Business Cycle Theory, know what happens once interest rates start to rise after a long period of double-digit monetary expansion. In 1987 it was a steep decline.”
http://www.economicpolicyjournal.com/2012/10/revisiting-87-crash.html
Did you like this?
Tip Freedomwat.ch Staff with Bitcoin
Tip Freedomwat.ch Staff with Bitcoin
Related posts:
Here’s an Escape Route from America’s Decline …
The Largest Gold Share Rise of All Time
Everything Is Modular . . . Is Governance Next?
Understand the Emergence of the Marijuana Meme - Even In China
Gary North: How Come We're So Rich?
The Taper Caper
Beyond Civil Disobedience
The States Could Reform Obamacare If Only We Would Let Them
Internet Fascism and the Surveillance State
This Is What Happens When Americans Place Their Trust In The State
Debt: Destroyer of Lives, Businesses, and Countries
I never knew how screwed up global banking was until I started my own bank
Ron Paul’s victory over Bernanke and the Federal Reserve
Civil Unrest Coming to America
How Bitcoin solved my startup's international banking problem