To Gann traders the 50-year cycle is important.
But is what happened 50 years ago really relevant?
Can we learn from the past? Does history really repeat itself?
In that regard, there are many similarities between now and 50 years ago.
As the '70s arrived, the USA had endured a decade (60's) of chaos, disorder, protest, and a war that wouldn't end.
Back then there was a worldwide pandemic of swine influenza, (1968-69) a continuing war in Vietnam, and rising inflation.
Back then, the Fed kept interest rates below the inflation rate way too long, which stoked inflation across the board.
What transpired then, was the “stagflation” of the 1970s, a period of poor economic growth and an inflation rate that outstripped wage increases.
The poor and middle class were blindsided and pummeled.
Not only was inflation a problem, but shortages in goods were the story of the day, which were made worse by supply issues (Arab oil embargo).
Oil went through the roof as supply from the Middle East was cut off and used for political leverage.
Gas Lines formed and store shelves were bare.
The American public became demoralized.
The stock and bond markets suffered a horrendous cyclical downturn that lasted for over 10 years.
People lost jobs and fled New York City in droves, and the city spiraled financially since much of its revenue was Wall Street based revenue.
Today we see echoes of the 1970s, with housing prices, and the cost of construction materials like lumber spiraling upward.
With the Fed pumping money into the system at $120 billion per month, it has created suppressed interest rates which are now below the inflation rate by a wide margin. (US Treasury 10-year note yielding 1.6% & inflation running at 4%).
Currently, we are seeing energy shortages seemingly of our own doing.
Now, as then we see a wind-down of the nation’s longest war ever.
Now, as then we see Shortages of goods.
Now, as then we see a fed seeing inflation as just a transitory problem.
What should concern all of us going forward is that this runaway inflation will become much more of a core problem.
After a year and a half of pandemic lockdown, we have all experienced a damaged national psyche.
We are scarred from the oppressive scare tactics of the social and national legacy media. It has altered our world.
The misunderstood notion that rising inflation is temporary can be a dangerous thing.
Once the public realizes inflation is becoming more of a core problem and starts feeling it, it has the potential to alter our way of life.
it's that 70's show again.
 
DISCLAIMER
The content of this message and its attachments are intended only for the informational and educational use for the intended recipient and may contain confidential and privileged information. If you are not the intended recipient, any dissemination, distribution, or copying of this message or its attachments is prohibited. If you received this message in error, please notify the sender by replying to this email immediately and delete this message and its attachments from your computer. The information provided by TradeZero America, Inc. is solely for educational and informational purposes. None of the information should be understood, construed or inferred to be an offer or solicitation of an offer, or a recommendation, to buy, sell, or hold any security or financial product, or engage in any particular investment strategy. This message is also not an offer to provide advisory or other services by TradeZero America, Inc. All communications sent to or from TradeZero America, Inc. are subject to archive and review by TradeZero America, Inc. and by regulatory and law enforcement authorities. We explicitly disclaim all liability for any action taken based on any information contained in this writing.