Tidbits, Market Plan & Texas Hedge, Inflation, Shutdown, FOB 11/10/25
- Wright team
- 2 days ago
- 5 min read
Tidbits
Inflation: Two weeks ago, the U.S. inflation rate for the past 12 months was reported to be 3%, way above the Federal Reserve’s stated goal of 2%. Three days later, the Fed reduced the Fed Fund Rate. Chairman Jerome Powell said, “Inflation has eased significantly from its highs in mid-2022 but remains somewhat elevated relative to our 2 percent longer-run goal."
In August 1971, the U.S. annual inflation rate reached an "intolerable" 3% and all financial “experts” predicted gloom and doom as runaway inflation would ruin the U.S. economy and that would bring down the world economy, maybe even wreck the world economy.
President Nixon immediately placed a 90-day freeze on wages and prices, even though wage and price controls have never worked. The initial freeze was followed by more complex phases of controls, which were eventually phased out in 1974 and the inflation rate jumped right to where it would have been if no controls had ever been placed.
Inflation continued to increase until 1979 when it reached 13.9%. Interest rates peaked on 17 December 1980 when the prime rate went to 21.5%. Farmland values dropped 70 to 80% by May 1984. Let’s hope history does not repeat itself.
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