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Personally I suspect it was from earlier than that. I think you can trace it back to Nixon at least who fully severed the dollar from gold and thus removed the

Personally I suspect it was from earlier than that. I think you can trace it back to Nixon at least who fully severed the dollar from gold and thus removed the last bit of restraint that countries had against the US from inflating too much or too quickly. This was a huge hit that helped to spark runaway debts and inflation, to be sure. But I'd go further back and say The Fed. It did more than anyone to give us the roaring 20's and the great depression.

pjc50 10y ago
What runaway inflation? This is the US we're talking about, not Argentina. More to the point, what's the actual evidence that the debt is a problem, and more of a disadvantage than the advantages of funding the various programmes and tax breaks that have arisen as a result?
- AnimalMuppet 10y ago
  > What runaway inflation? This is the US we're talking about, not Argentina. We were starting into it. Inflation was increasing, and hit 21%/year. It might have continued increasing, except for Volker. It cost a double-dip recession to reign it in.
  - chillacy 10y ago
    When you say 21%, are you talking about the increase in inflation rate (so a derivative), or the actual inflation rate? Because the actual inflation rate was 1.64% as of last year Oct-Oct: https://www.wolframalpha.com/input/?i=US+yearly+inflation+rate https://www.wolframalpha.com/input/?i=US+yearly+inflation+ra...
    - AnimalMuppet 10y ago
      I was talking about 1979-1981.
  - pjc50 10y ago
    > hit 21%/year Eyeballing this chart http://www.tradingeconomics.com/united-states/inflation-cpi http://www.tradingeconomics.com/united-states/inflation-cpi that 21% appears to have been at the end of WW2?
    - AnimalMuppet 10y ago
      Ah. OK, inflation of 15%. My error. I remember interest rates hitting 21%, though.
pnutjam 10y ago
I'd love to read some historical data that correlates this, I'll raise you Frederick Lewis Allen, check out any of his books really. They'll open your eyes.

pjc50 10y ago

What runaway inflation? This is the US we're talking about, not Argentina. More to the point, what's the actual evidence that the debt is a problem, and more of a disadvantage than the advantages of funding the various programmes and tax breaks that have arisen as a result?

AnimalMuppet 10y ago
> What runaway inflation? This is the US we're talking about, not Argentina. We were starting into it. Inflation was increasing, and hit 21%/year. It might have continued increasing, except for Volker. It cost a double-dip recession to reign it in.
- chillacy 10y ago
  When you say 21%, are you talking about the increase in inflation rate (so a derivative), or the actual inflation rate? Because the actual inflation rate was 1.64% as of last year Oct-Oct: https://www.wolframalpha.com/input/?i=US+yearly+inflation+rate https://www.wolframalpha.com/input/?i=US+yearly+inflation+ra...
  - AnimalMuppet 10y ago
    I was talking about 1979-1981.
- pjc50 10y ago
  > hit 21%/year Eyeballing this chart http://www.tradingeconomics.com/united-states/inflation-cpi http://www.tradingeconomics.com/united-states/inflation-cpi that 21% appears to have been at the end of WW2?
  - AnimalMuppet 10y ago
    Ah. OK, inflation of 15%. My error. I remember interest rates hitting 21%, though.

pnutjam 10y ago

I'd love to read some historical data that correlates this, I'll raise you Frederick Lewis Allen, check out any of his books really. They'll open your eyes.