tag:blogger.com,1999:blog-4290163255778893789.post1346944710660881740..comments2024-03-16T05:19:07.061-04:00Comments on Retirement Blues: A Look at Debt and InflationJazzbumpahttp://www.blogger.com/profile/07337490817307473659noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4290163255778893789.post-54750101369055005922014-02-23T13:15:13.941-05:002014-02-23T13:15:13.941-05:00Nice.
Suppose we attribute the Great Inflation to...Nice.<br /><br />Suppose we attribute the Great Inflation to baby boomers, as <a href="http://www.interfluidity.com/v2/4561.html" rel="nofollow">Steve Waldman</a> did, and consider the time since the crisis as an anomaly. Set aside inflation above 6% -- basically the Great Inflation and Preamble -- and set aside debt growth below 3% -- basically, since the crisis -- and look at what remains.<br /><br />The <b>fastest</b> debt growth occurs at the <b>lowest</b> inflation in the yellow area, under Eisenhower.<br /><br />The next lowest inflation occurs during mid-range debt growth in the Kenedy-Johnson years.<br /><br />Chronologically after that are the remaining green and the dark blue; inflation here was mostly in the 3% to 6% range.<br /><br />But in the midst of the dark blue we have the Red of the Clinton Stability, in very much the same area on the graph as the Kennedy-Johnson low-but-not-lowest-inflation dots.<br /><br />Now... Given that debt growth is basically all over the place, let me summarize the inflation I have just described. Chronologically, we have <br />1. 0%-1% inflation (Ike)<br />2. 1%-3% inflation (JFK&LBJ)<br />3. 3%-6% inflation (Dark Blue)<br />4. 2%-3% inflation (Clinton)<br />5. 3%-6% inflation again<br /><br />One could describe this summary as: Starting from a low level, the data show a general pattern of increase, the exception being an unusual low in the Clinton era.<br /><br />I apply that same description to the graph of <a href="http://research.stlouisfed.org/fred2/graph/?g=soE" rel="nofollow"><b>accumulated</b> debt relative to the quantity of money</a> available for the settlement of debt.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com