Since the outbreak of the oil crisis in 1973, inflation soared rapidly, people rushed to spend money, but also kept borrowing money, the demand for money enlarged, the Federal Reserve printed more dollars, the inflation rate and leverage rate became higher and higher, and the US economy fell into the negative feedback of “self-inflation”.
Where is Noah’s ark, as the dollar continues to fall in the face of hyperinflation and global investors panic?Where is the lifeline?
The most reliable, it turns out, is the Earth.Apart from sun and rain, the earth’s greatest gift to mankind is commodities.Every time the human race has gone overboard, commodities have become an implacable hard currency. A lot of money has been invested in gold, oil, gas, land, and suddenly the gifts of the earth have become extremely scarce and the price has skyrocketed.
By this time, the Soviet planned economy was on the verge of collapse, but the “chauvinistic” seizure of large swaths of territory and underground mineral resources once again saved the country.The Soviet mines were at full throttle, oil was pumping out, and dollars were falling from the sky.
With the backing of the dollar, the Soviet Union extended its arms into Afghanistan, Vietnam, Latin America, and Africa, showing its teeth aggressively.The United States, by this time, had completely lost its sense of great power. Its stock market had tumbled, its bonds had defaulted, the dollar had depreciated, capital flight had taken place, the economy was stagnant, inflation was high, and unemployment was rising.
From 1972 to 1973, the price of eggs rose by 49%, followed by the price of chicken, duck, fish, cattle, sheep, pigs and other birds and animals jumped up, and the overall price of meat rose by 25%.
A Texas farmer who drowned 40,000 chickens alive in a pond stunned national television viewers.The reason was that poultry prices were not high enough to qualify for subsidies.
In April 1973, Half the Sky Housewives launched a one-week national campaign against meat.This is similar to China’s “campaign against rising property prices” a few years ago.
In October 1973, the Organization of Petroleum Exporting Countries (OPEC) met, and the Nixon administration blamed inflation on insatiable Arabs.Subsequently, scientists and scholars pulled out an ancient whitewash – El Nino – to blame.
On Saturday night, 20, Nixon abused his power to carry out a “massacre” on the Justice Department, which shocked the whole nation.On the 31st, the House of Representatives began impeachment proceedings against Nixon.
President Nixon was a Keynesian: “I am now an economic Keynesian.”‘I’m going to devalue the dollar,’ he told The New York Times in 1971.He used the Phillips curve to lower unemployment by devaluing the dollar and then controlling inflation by manipulating prices.