Experts fear a 1960s-style rerun of the Fed letting inflation build up
“Some eerie parallels exist to the late 1960s, when inflation got out of control . . .In their paper, the researchers said there is a risk that inflation could swiftly break out of its recent doldrums ‘especially if political pressures begin to influence market expectations.’ That’s what happened in the 1960s, they noted.”
USAGOLD note: During the 1960s, the dollar was expressed as 1/35th of an ounce of gold by international agreement – a benchmark the United States maintained and defended with, at the time, the world’s largest gold reserve. Eventually, the United States was forced to devalue the dollar in terms of gold in order to keep the U.S. gold reserve from being radically depleted. In the two devaluations in the early 1970s, the U.S. government simply re-calibrated the weight of gold assigned to each dollar. Today any dollar devaluation, which in essence is what the Trump administration is pushing in its currency negotiations with China (for one), will occur daily against gold in the free market – not de jure as it was during the Nixon era but de facto as it has been the case in fits and starts ever since. There will be no formal announcement of devaluation and it will not be obvious to most of the citizenry that it is underway.