In 1976 People Feared The US Government Would Fail To Fund Itself, But Bill Simon Had A Plan…

Posted on February 10, 2019 2:37 pm
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URL https://www.zerohedge.com/news/2019-02-10/1976-people-feared-us-government-would-fail-fund-itself-bill-simon-had-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.

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