Broad Oak: your emotional support animal

Wednesday, May 06, 2009

Gold, and theft by inflation

A killer graph here from Charles Hugh Smith. Interestingly, the steady real decline of average incomes begins at almost exactly the same time as Nixon shut the "gold window".

Smith's take is that "the speculative mania in housing was fundamentally a tragic last-gasp effort to make up lost ground via speculation in housing". And if housing reverts to mean, it has a long, long way to go yet.

4 comments:

James Higham said...

yes, Nixon is an interesting study in retrospect. He was Their mug.

dearieme said...

Nixon had a choice. He could accommodate LBJ's extravagant
Welfare/Warfare State decisions, or put his foot down and try to correct things. If he'd done the latter he probably wouldn't have been re-elected, so he did the former. I blame the electorate.

Paddington said...

Nixon had a better reputation in Europe than in the US, since he at least appeared to understand the paranoia of the Russians and Chinese.

OldSouth said...

My parents bought their final house in 1969, in a lovely neighborhood, for $29,000. They were worried about affording the $126 monthly house payment....

Lots alone, before the crash, were going for $250,000. The buyers would raze the 1950's brick ranch houses, and erect small castles.

Nixon's true legacy.