Tuesday, June 25, 2013

Tricky Dicky and Inflation

"I dont give a good Goddamn what Milton Friedman thinks. He is not running for re-election"~President Nixon.

Most people are not familiar with this quote from President Nixon, they are familiar with Watergate. Some are familiar with his action from removing the United States from the Britton Woods agreement. In lay terms, we were removed from the Gold Standard. Was this a wise Economic move? Or was it a better political move for Nixon? Mr. Detlev Schlichter explores this in his article, "The Triumph of Politics" Here is a key excerpt from this article:

"Since 1971, the number and intensity of banking crises around the world has gone up markedly, according to Carmen Reinhart and Kenneth Rogoff, hardly anti-establishment economists. Debt levels exploded. The ten years up to the start of this crisis in July 2007 have seen house prices in the US rise ten times faster than over the previous one hundred years."

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