just as we hit multi-year equity index highs (with the entire interest rate complex devastatingly divergent still - despite very-recent weakness), we thought it might be at least a little instructive to remember what happened in the late 1970s as analog. These 3 simple charts of Consumer Confidence, Capacity Utilization, and Initial Jobless Claims show just what can happen when you think it's all over.
While there are many analogs, we find these extremely timely given the somewhat similar underlying conditions that the world faces; to wit: "A Middle East 'tinderbox' that is very susceptible to a food price shock and a likely cause of an Oil price shock (as we saw in 1973-1974 and again in 1978-1979)."
Initial Claims - all looking good until 'Oil'...
More charts and stuff. Dont miss the comments. All over the place. Looks like some gumpie trolls to debunk reality......
one comment,,,,,,,,,,,
YouAreBliss
YouAreBliss's picture
Of course back then we had the GOP Nixon ending the Vietnam war - hugely contractionary.
Today we have a GOP - that makes war two at a time. and funded with deficit spending.
You can be sure the Romney/Ryan ticket, if elected, won't stop that train. They're already drawing up the list, as pre-election Bush/Cheney did.
Let's See:
Iran/Syria First
China Next,
Then...it's reelection time.
We can be sure the massive defense-deficit spending will continue to pump-prime our glorious economy. AND NOW WE GET TAX CUTS WITH OUR UNFUNDED WARS!!! WHAT COULD BE MORE STIMULATIVE!!!!
Those old 1970's conservatives - were, well so conservative. Welcome to the "new" conservative agenda!!!
As our "new" conservative stalwart, Dick Cheney loves to say "deficits don't matter", or DDM for short. God bless his little mechanical heart!
Wars and Tax cuts for everybody! (of course deficit financed) Hooray!!
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Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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