Inflation mirroring the 70s

[OgNasty]

In the 70s it was the second wave of inflation that wrecked the economy. This one would propel Bitcoin in line with the 4-year cycle while slapping consumers with another massive price increase.

Will we see an inflation spike or will higher interest rates keep it under control?

[Filicius]

In the 70s it was the second wave of inflation that wrecked the economy. This one would propel Bitcoin in line with the 4-year cycle while slapping consumers with another massive price increase.

Will we see an inflation spike or will higher interest rates keep it under control?

This time it may be different. There are already serious altercations taking place in European cities, the most notorious in France from Paris to Marseille but which are spreading to many other municipalities in different countries, such as Milan or Barcelona, and which in principle seem to be motivated by a spirit of rebellion against the rising cost of living.

If these altercations escalate enough, governments all over the world may take steps to at least smooth future inflation and avoid a scenario like the one you remind us of.

[logfiles]

Will we see an inflation spike or will higher interest rates keep it under control?

We are already on the way to another inflation spike. The Gulf instability doesn't seem to be ending pretty soon and with the raised fuel prices, everything is going to continue going up. I am personally seeing the effect already in our country.
From Agricultural produces to all sorts of other commodities and services, things have never been the same again since the war started and there seems to be no hope to catch a breath for now. I believe the higher interest rates won't help that much.

[BitSofia]

What we want to see is the higher energy prices actually driving inflation within the economy (core inflation) and therefore wages. Inflation in the 1970s was a much deeper monetary issue so the oil shock is not the cause of the entire crisis. Higher interest rates will help reduce demand but cannot directly solve the supply shock. Issue is that higher interest rates for longer periods can also hurt economic growth. Even if inflation does increase again it doesnt necessarily mean that Bitcoin will follow the typical 4 year cycle and rise. Liquidity and market expectations are also important factors.

[AVE5]

Will we see an inflation spike or will higher interest rates keep it under control?

Inflation is what we know is bound to happen without even the governments that regulates the economy in other to control the inflations determine if inflations will lives or stays, if they've that influence, I think the inflation will totally be wiped off because, it's already a disaster that's affecting the economic market which even both the rich and the poor faces the economic hardship challenges that it's accompanied with the inflations.
What I'm saying here's that it's not of our position to decide or determine the possession of the inflation it's an economic event that happens naturally.
So definitely the inflation will spike making source of living more tighter for the lower classes while the riches and their savings in the banks remains vulnerable to go broke if they aren't investing because, the fiats will loose values.
Interest rates won't be enough too to solve the inflation threats.

[Ambatman]

 I really hope this don't happen but we might be heading towards this direction.
Because falling inflation doesn't even translate to falling prices of goods.
https://truflation.com/truman?mode=auto&web=on&source=marketplace_v2_summary&effort=medium&session_id=78c0846b-c68d-436b-83bd-e62c13f0c024

According to Truflation we currently above prior year as at today by 3.1%
Yeah I understand that it really does help Bitcoin price most of the time
Let's just hope the rate of increase would beat the rate of increase of inflation in our various demographic area.

[IjawMan]

Will we see an inflation spike or will higher interest rates keep it under control?

We are already on the way to another inflation spike. The Gulf instability doesn't seem to be ending pretty soon and with the raised fuel prices, everything is going to continue going up. I am personally seeing the effect already in our country.
From Agricultural produces to all sorts of other commodities and services, things have never been the same again since the war started and there seems to be no hope to catch a breath for now. I believe the higher interest rates won't help that much.

Government raises interest rate with the intension to cussion the effect of inflation on the economy and giving the government a form of control but in this case the more the interest rate is raise in each quarter the more the overall prices of goods and services continue to spike thereby defeating the effect of the rate raised.

All this rate raising will not do any much good in so much as the wars in various parts of the world remain in warring spirit. War does brings about unrest and causes the normal flow of products and services to slow down therefore causing scarcities in all sectors of the economy.

[Fortify]

In the 70s it was the second wave of inflation that wrecked the economy. This one would propel Bitcoin in line with the 4-year cycle while slapping consumers with another massive price increase.

Will we see an inflation spike or will higher interest rates keep it under control?

We have to be very careful when comparing data points in the past and trying to project the future. Sure, there happens to be correlation across that particular band of time and the world can often move in repeating cycles, but human development is always evolving. You just have to look at boom and bust to see that recessions/corrections can now be much shorter plus sharper to recover than they used to be. The advance of communication, namely the internet has allowed caused rapid changes to how communication works. Central banks also have a lot more information to work on and will take more active measures to combat inflation. However we have seen that people are creatures of habit and chase comfort in routine, even over decades, so we may see such patterns continue.

[OgNasty]

We have to be very careful when comparing data points in the past and trying to project the future. Sure, there happens to be correlation across that particular band of time and the world can often move in repeating cycles, but human development is always evolving. You just have to look at boom and bust to see that recessions/corrections can now be much shorter plus sharper to recover than they used to be. The advance of communication, namely the internet has allowed caused rapid changes to how communication works. Central banks also have a lot more information to work on and will take more active measures to combat inflation. However we have seen that people are creatures of habit and chase comfort in routine, even over decades, so we may see such patterns continue.

There’s a saying for this… History doesn’t repeat itself, but it often rhymes.

[philipma1957]

the inflation was done in the 70's tricky dick then Carter

it was done in the 00's Bush and Bush

it is being done now in the 20's by Trump Maga

in all cases it is done to hurt the poor and the middle class

[General_Bitcoin]

Will we see an inflation spike or will higher interest rates keep it under control?

There are mixed signals here. With the US CPI coming in higher for September 3.7% up from 3.4% in August. Much of the rise is in Gasoline prices. The core inflation is looking lower than headline. So we are seeing more of an energy price shock at the moment. However, this does mean that if the second wave of the 70s only ended once the Fed had increased rates to near 20% in 1981. We should also consider how much energy prices will begin to feed through into wages. This may mean we need a higher rate.

[pooya87]

The problem isn't just the inflation, it is the combination of inflation and recession. So we could say things are headed toward the Great Inflation plus the Great Depression.

All of that is because of the grand moronic strategy of Washington to destabilize the world in order to "contain" China and prevent its growth so that they can compete and stay relevant! I explained it last year and every day that passes we can see how correct that analysis was.

Will we see an inflation spike or will higher interest rates keep it under control?

This level of economic disruption cannot be controlled by playing with interest rates. We are talking about a chaotic period where everything is out of control and unpredictable.

The US regime being delusional doesn't help it either.
For example they never thought that after they start the tariff war with China, the Chinese would retaliate so hard that it would inflict more pain on US economy than on China's.
Or when they started the terrorist attacks against Iranians on Feb 28, 2026 (Saturday) they never imagined it would take more than 3 days (till Monday when the markets reopened!) and they definitely never thought Iran would obliterate the US military (the Central Command) across West Asia.

So the next wave of economic devastation depends on the destabilizing actions of the US regime and generally speaking the Epstein Axis. Intelligence suggests that they are preparing for a new set of terrorist attacks against Iran (as I had predicted months ago). But the result will not be different. However this time there are some "unofficial" targets that are published as the Zero Hour Targets for obliteration that includes a vast number of American economic assets.

Basically Iran could obliterate one American asset for every civilian the American terrorists murder. These Zero Hour targets that I remember include: Microsoft servers, Amazon Web Services, Google Cloud servers, NVIDIA, Oracle, ZainTECH, various AI data centers and farms, etc. and that's just regional targets, it is highly possible that this phase will no longer be regional...
With the AI being in a big bubble and the US stock market already struggling to not get dumped, this would have the potential of being devastating. Accompanied with obliteration of everything "Big Oil"-related and the backbone of the Petrodollar that would cause even bigger energy price hikes as well as shortage, we can expect a combination of a deep recession and a high inflation on the horizons.

[EarnOnVictor]

In the 70s it was the second wave of inflation that wrecked the economy. This one would propel Bitcoin in line with the 4-year cycle while slapping consumers with another massive price increase.

Will we see an inflation spike or will higher interest rates keep it under control?

Economic problem or not, Bitcoin will rise.

I don't see this entirely your way. The 1970s inflation disaster was orchestrated by the poor handling of the interest rate by the Fed when interest rates were wrongly cut. But the current Fed is handling it well. Jerome Powell resisted Trump on the cut, and Kevin Warsh, who was perceived to be Trump's puppet has even raised it by 25 basis points in September.

Still, inflation will continue to creep in one way or another, but the effect will not be more significant than it has been.

[Abiky]

We are already on the way to another inflation spike. The Gulf instability doesn't seem to be ending pretty soon and with the raised fuel prices, everything is going to continue going up. I am personally seeing the effect already in our country.
From Agricultural produces to all sorts of other commodities and services, things have never been the same again since the war started and there seems to be no hope to catch a breath for now. I believe the higher interest rates won't help that much.

It's going to get worse than the 70s or any other era combined. Things are a lot different now than what they were a long time ago. Because by the 70s, there wasn't any tensions between several countries. These days we have tensions between the US, Iran, Israel, Gaza, Russia, and Ukraine. Without mentioning upcoming conflicts such as the China-Taiwan war and a potential confrontation between the EU and Russia. With persisting wars among factions, inflation is going to remain stubbornly high.

Like you've said, higher interest rates won't be any help. There's nothing in the world central banks can do to help solve this problem. If they get too "aggressive" (hawkish), the economy won't have a "soft" landing. The only solution would be a long-lasting peace between the aforementioned countries. Especially between Iran and the US. Because the Strait of Hormuz, is vital for the global energy supply. Fix the "oil issue", and the economy will get right back on track. As simple as that. But for some reason, Donald Trump doesn't want to let go. Even with the immense political backlash. This is the end, I guess.

[pooya87]

Things are a lot different now than what they were a long time ago. Because by the 70s, there wasn't any tensions between several countries.

There are both differences and similarities actually.

Period	|	1970's	|	2020's
Recession years	|	1973–1975	|	?? (we are in the midst of it)
World War	|	WW3 (aka Cold War)	|	WW5
Sides	|	East vs West	|	East vs West
Major Armed Conflicts	|	Vietnam War (ended in 75) Arab Zionists War (1973) Turkish invasion of Cyprus (1974) Proxy war in Angola (1975) Proxy war in Afghanistan (started in 1979)	|	Proxy war in Ukraine (started in 2022) Zionists committing Genocide in Gaza Epstein Axis fire-exchange with Iran Epstein Axis fire-exchange with Yemen NATO re-establishing al-Qaeda in Syria and taking control of Damascus Yemen war with US-Arab invaders pushing them out
Energy Crisis	|	Arabs imposing an oil embargo on US and Europe due to NATO's support of Zionists	|	Iran and allies shutting down the seas on Epstein Axis
	|		|

There are actually a lot of similarities. The only major difference I can think of is that the West (ie. the colonizers) are nowhere near as powerful as they were in the 70's and the East is not longer as weak as it was back in those years.

[trendcoin]

I expect a new wave of inflation.

Interest rates were trending downward, but then we experienced the Strait of Hormuz crisis. For this reason, instead of lowering interest rates, we raised them again. This was because we believed the crisis’s effects would be temporary. However, we now see that the crisis’s effects will not be temporary, and interest rate hikes will not solve the problems. Since keeping interest rates at high levels for a longer period is not a solution either, I believe we will enter another period of inflation.

Furthermore, what we call “interest rates” is a fictitious transaction. It is, in fact, a deception. A deception cannot solve a real-world problem.

A math problem or a physics problem may yield the correct result, but it cannot move a single grain of sand from its place.

[hafiztalha]

Another spike in inflation is possible but it is quite misleading to compare today's situation with 1970. There are different factors that are influencing inflation including the energy crisis, supply chain, monetary policy, and government debt. Inflation can be controlled by high interest rates, but it cannot solve all the problems, especially when the inflation is because of supply shortages and higher production costs. As far as Bitcoin is concerned, renewed inflation increases its appeal as a store of value, especially among those people who are losing confidence in Fiat currencies. If central banks are responding with rate hikes, then investors can reduce their exposure to risky assets, including Bitcoin.