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Whip Inflation Now
Thu, Sep 4 2008, 08:40 GMT
by Forex Journal's Collaborators
This article is taken from the Forex Journal (July 2008 issue).
The author is a recognized expert and leader on investment issues, Millennium Wave Investments President John Mauldin is primarily involved in private money management, financial services and investments. John is a prolific author, writer and editor of the popular Thoughts from the Frontline e-letter, which goes to over 1,000,000 readers weekly and is posted on numerous independent websites.
- John Mauldin takes a hard look at the economic problems and circumstances seen around the world. After everything, he wonders what it would be like to be a central banker in today.
President Richard Nixon instated price controls on August 15, 1971. Inflation was a little over 4% at the time. Price controls manifestly did not work (resulting in product shortages and a deep recession) and were rescinded a few years later.
President Gerald Ford went to Congress with programs to fight inflation running close to 10% in October of 1974 with a speech entitled 'Whip Inflation Now' (WIN). He famously urged Americans to wear 'WIN' buttons. That policy was also less than effective and the buttons, in a history replete with silly gestures by governments, should stand on anyone's top ten list of such silly gestures
More thoughtful cynics wore the buttons upside down and said the inverted letters, which looked like “NIM,” stood for “No Immediate Miracles.” they were right. there was no miracle, just eventual pain and lots of it. Paul Volker ultimately defeated inflation, at the cost of two serious recessions and a lot of economic misery with unemployment levels over 10% for nine months in 1983.
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Other article in this issue:
Published on Thu, Sep 4 2008, 08:40 GMT
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