The wage and price controls (and I can tell you that the wage controls were imposed much more rigorously than the price controls) could not have caused the inflation component of the stagflation about which speak. Rather, the stagflation was caused by the enormous amounts of cash being shipped offshore in the first round of energy price increases and industrialization heading for the Pacific Rim in Japan, Korea, Singapore, Taiwan, Thailand, and Malaysia.

Nixon and Ford leaned on the Fed to keep the money spigots open through the 1976 election, hoping to forestall the recession which was threatening just in time for the 1976 election. Of course, all that happened was that hot money wound up igniting inflation (just as we’re seeing now) after a few quarters lag and the new Fed head rapidly ratcheted up interest rates to kill the inflation bug. It was that rapid increase in rates which caused the stagnation, just like the increased rates Greenspan engineered against Gore in 2000. Strange how that old fool never saw that recession coming in late 2000 and early 2001 but kept increasing rates right through the election.

You just hit the nail on the head. Exactly!

Comment by Sabyen91 — February 16, 2008 @ 3:35 am

well, I understand your position, but the pilots of “shock and awe” were not beating back Nazi hordes, nor were the napalm-deliverers of Viet Nam. Our military has been turned into a killing machine for corporate interests, and what they have done for the past 40 years has very little to do with defending our freedoms. Especially during the Iraq war, when there is virtually no air resistance, and pilots and bombardiers are in little danger while destroying wedding parties and city blocks. And I am going to poung McCain as Kerry was pounded. We need to prevent another republican catastrophe, in any way we can, and Mccain’s sickening cowardice in the face of pressure from his GOP masters bodes very ill for the future of our country if he isn’t stopped. So try reading a little between the lines.

Comment by Tracy2 — February 15, 2008 @ 11:43 pm

Not as gutless as dropping bombs on civiliians from 3000 feet, though, like the fake hero McCain.

Comment by Sabyen91 — February 16, 2008 @ 1:05 am

dude i love “monk”!

he’s a progressive detective.

Either way, it is wrong again.

In August 1971 Richard Nixon imposed wage and price controls in an attempt to control rising inflation. Price controls did not stop inflation and the country experienced stagflation in the 1973 recession.

Doesn’t anyone at the RNC do any research?

Comment by shoeless — February 16, 2008 @ 12:22 am

the manual says “google, obfuscate and move on.”

trolling’s hard work man!

btw, shit i got done while t2 was here posting away:

went to the gym – 1hr.

got groceries – 45 mins

chatted with gf on the phone – 1hr

got my tax returns ready – 1hr

Comment by joe cantwell

Then you would think they would be better informed.

Doesn’t anyone at the RNC do any research?

man they work hard for the money.

;)

I don’t know what we would do without these RNCbots to help us flesh out our arguments against the fascist right.