In 1976 People Feared The US Government Would Fail To Fund Itself, But Bill Simon Had A Plan…
Submitted by Eric Peters of One River Asset Management
“Surely you remember Bill Simon?” asked the CIO. And I shrugged. “You’ve seen so little,” he said, sighing, frustrated by my youth.
“Well, Bill Simon was a Wall Street bond king who became Treasury Secretary under Nixon, when markets were rioting. Treasury feared they’d have a failed bond auction in 1976.”
The inflationary process began in the mid-1960s — fueled by a massive tax cut (1964), anemic productivity growth, tight labor markets, and public policy that encouraged strong wage gains to battle inequality between rural poor and middle-class urban workers.