What the Inflation of the 1970s Can Teach Us Today | WSJ

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Recently, the U.S. inflation rate reached a 13-year high, triggering a debate about whether the country is entering an inflationary period similar to the 1970s. WSJ’s Jon Hilsenrath looks at what consumers can expect next. Photo: Alexander Hotz

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31 COMMENTS

  1. The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2024 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

  2. Economists and business leaders are voicing concerns at the start of 2023 that the year could be a difficult one. JPMorgan Chase & Co. Chief Executive Jamie Dimon said that the Federal Reserve may need to raise interest rates to 6% to fight inflation, higher than the peak level between 5% and 5.5% in 2023 that most Fed officials penciled in after their December meeting. Although I read an article of people that grossed profits up to $500k during this crash, what are the best stocks to buy/short now or put on a watchlist.

  6. As recession fears mount on Wall Street and inflation remains
    well above the Fed's 2% target, some of the top commentators in
    markets, business, and economics have been sounding off on just
    how bad they think the next downturn might be – and how far
    stocks may have to fall. I need ideas and advice on what investments
    to make to set myself up for retirement, my goal is to have a portfolio
    of at least $850k at the age of 60

  7. 7:38 OMG they were going to wait until late 2023 to start hiking 🙀 It will be very interesting to see how the pundits look when they are all calling for interest rates to drop back in early 2024 (as of July 2023)… Seems like higher for longer may need to occur to keep this under control

  8. The easy money policies of the 60s and 70s were minuscule by today’s standards. Due to multiple and audacious rounds of Quantitative Easing coupled with thirteen or more years of zero- and negative-interest policies, along with a logarithmic increase in the money supply, we are in uncharted territory. Corporate finance, commercial real estate, and shadow banking are all precipitously leveraged. The regulatory environment is toothless and risk management is a relic of past generations. Equities, bonds, and real estate are profoundly inflated. The Fed must unwind its astronomical balance sheet to reduce self-inflicted inflation and that will require Volcker-era tough love along with a dose of rarely encountered moral rectitude.

  10. I have always had 6 months stock up of food. Water. And money tp pay rent etc. For 6 months. When ATM is down and banks are closed

    Move to Mexico.

    R. I. P. Everyone.

    Greed is the reason for high prices.Happy I moved to Mexico in 2021 at 79..Washington D.C. is stealing zillions. Rents, utilities, gas etc. Get the heck out of the USA if retired or can work online

    acajudi100 for my YouTube videos from age 70.75

  12. increased losses for portfolios this quarter are predicted by market drops, skyrocketing inflation, a major interest rate hike by the Fed, andI rising treasury rates. How can I profit from the volatile market right now? I'm still considering whether to sell my million dollar bond and stock account.

  17. …Being born in California in the year 1957 is where I experienced the 1970s Stagflation. I remember those dark days. I moved out of my parents home to go to college – worked at night and went to college in the day. Split the rent with my buddy. I was okay as a young single guy but I knew my parents were going through a lot with my younger sisters and brothers. I am glad I was not a burden to them and helped out where I could.

  18. To say we are in a situation closer to the 60s than the 70s just based on where the rate was at the time of the video has got to be the most illogical moronic thing I have ever heard…

    One year removed and not one person including the Fed is saying it's transitory. This was obvious to anyone with half a brain cell, you don't print trillions and inject it into a shutdown economy without MASSIVE reprocessing, uh duh 🤦‍♂️

  20. I cant believe this information is free. This topic would taken me a whole day worth of research. This information was presented in 8 minutes. Absolutely amazing content thank you so much!

  21. Don’t forget it was government policies that put us in this situation , and not the coronavirus. One of the biggest scams in modern history.

  22. Awesome! your potential seems timeless.* Understanding your financial needs and chalking out a plan remains the smart way to prepare for the unexpected. 11yrs in investing space and extremely pleased with the decision I made.The good news is — it’s not too late, I'll suggest you find a mentor or someone with experience guide you especially in this recession.

  23. It's not interest rates that needs to go up but money printing has to stop or what happened in Germany before WWII will happen in the western economies. You cannot print money as a way out of the current financial deficit.

  24. If 97% of all our money was NOT FAKE, and made out of THIN AIR… We would not have this problem.. All our money is BACKED BY DEBT… There is NO REAL MONEY in the World anymore… ITS A PONZI …

  28. Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy. The fin-Market;s have underperformed the U.S. economy as fear of inflation hammers the prices of stock;s and bonds. My portfoliio of $250k is down to $192k any recommendation;s to scale up my return;s during this crash will be highly appreciated.

  29. I’m not worried about inflation. I’m confident President Biden has everything under and this transitory inflation will soon just be a memory!

  31. I remember as a kid in the mid 70's my parents got rid of our dogs. I can see why now as then prices were so high we couldnt afford to feed them. Sad that we are heading that way again…maybe even to a 1930s type depression through 2025.

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