AdvancingTime
Senior Member
- Feb 8, 2015
- 150
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Reflecting back on how our economy arrived at this point is very important. Rewarding savers and placing a value on the allocation of financial assets is important. It should be noted that many Americans living today were not even born or too young to appreciate the historical ramifications of the events that took place starting in 1979.
That was when then Fed chairman Paul Volcker hiked interest rates to over 20%. The impact of higher interest rates had a massive positive impact on corralling the growth of both credit and debt acting as an crucial reset to the economy for decades to come. Below is an article delving into the importance of this event and how it relates to the skewed and distorted economic landscape of today.
http://brucewilds.blogspot.com/2015/04/interest-rates-inflation-and-debt-matter.html
That was when then Fed chairman Paul Volcker hiked interest rates to over 20%. The impact of higher interest rates had a massive positive impact on corralling the growth of both credit and debt acting as an crucial reset to the economy for decades to come. Below is an article delving into the importance of this event and how it relates to the skewed and distorted economic landscape of today.
http://brucewilds.blogspot.com/2015/04/interest-rates-inflation-and-debt-matter.html