136.3 1970s Inflation Then, But Not Now Because… 

———Ep 136.3 Summary———
A review of transcripts and recordings from the 1970s reveals that monetary and political authorities were unable to identify the source of inflation (international liquidity creation). The authorities didn’t understand money in the 1970s, and they still don’t.

———Sponsor———
Macropiece Theater with Alistair Cooke (i.e. Emil Kalinowski) reading the latest essays, blog posts, speeches and excerpts from economics, geopolitics and more. Interesting people write interesting things, why not listen and hear what they have to say? You could do worse things with your time (i.e. Bloomberg, CNBC, et cetera). Recent readings include thoughts from George Friedman, Lyn Alden, Daniel Oliver, Michael Pettis, the Bank for International Settlements and yes, even Karl Marx.

———See It———

Twitter: https://twitter.com/JeffSnider_AIP
Twitter: https://twitter.com/EmilKalinowski
Alhambra YouTube: https://bit.ly/2Xp3roy
Emil YouTube: https://bit.ly/310yisL
Art: https://davidparkins.com/

———Hear It———

Vurbl: https://bit.ly/3rq4dPn
Apple: https://apple.co/3czMcWN
Deezer: https://bit.ly/3ndoVPE
iHeart: https://ihr.fm/31jq7cI
TuneIn: http://tun.in/pjT2Z
Castro: https://bit.ly/30DMYza
Google: https://bit.ly/3e2Z48M
Spotify: https://spoti.fi/3arP8mY
Pandora: https://pdora.co/2GQL3Qg
Breaker: https://bit.ly/2CpHAFO
Castbox: https://bit.ly/3fJR5xQ
Podbean: https://bit.ly/2QpaDgh
Stitcher: https://bit.ly/2C1M1GB
PlayerFM: https://bit.ly/3piLtjV
Podchaser: https://bit.ly/3oFCrwN
PocketCast: https://pca.st/encarkdt
SoundCloud: https://bit.ly/3l0yFfK
ListenNotes: https://bit.ly/38xY7pb
AmazonMusic: https://amzn.to/2UpEk2P
PodcastAddict: https://bit.ly/2V39Xjr

———Ep 136.3 Topics———

00:00 INTRO: A review of what 1970s US leaders thought was causing inflation that decade.
00:55 The 1970 recession in the USA did not slow (much at all) the rate of inflation, why not?
01:44 The Great Inflation actually lasted from 1965 to 1982 (during Great monetary expansion).
03:22 The Nixon Shock wasn’t so much about gold as wage and price controls to stop inflation.
05:31 In 1972 Arthur Burns raised the idea that too much money (M2?) may be causing inflation.
09:26 In 1974 John Sheehan believed the inflation was not caused by monetary POLICY – correct!
11:25 In 1976 Lyle Gramley believed M1 should be expanding at DOUBLE the actual rate – why not?
14:07 The Fed didn’t understand money in the 1970s and doesn’t today.
17:37 OUTRO: Price increases yes, but without money it will prove to be transitory.

———Ep 136.3 References———

The Power of Money Lurks In the Shadows: https://bit.ly/30EPSFP
Alhambra Investments Blog: https://bit.ly/2VIC2wWlin
RealClear Markets Essays: https://bit.ly/38tL5a7

———Who———

Jeff Snider, head of global investment research for Alhambra Investments with Emil Kalinowski, Trevor Something listener. Art by David Parkins, coloured-pencil pamphleteer. Show produced by Terence, focused visuals. Podcast intro/outro is “Aurora Borealis” by Chill Cole found at Epidemic Sound.