Mark Blyth

So what then happens, and this is the official story, is that people began to focus on what are called their future expectations of prices. Now, stay with me on this because it's important, right? So people are used to prices being stable. And then they become unstable. They start to rise.

So what then happens, and this is the official story, is that people began to focus on what are called their future expectations of prices. Now, stay with me on this because it's important, right? So people are used to prices being stable. And then they become unstable. They start to rise.

So what then happens, and this is the official story, is that people began to focus on what are called their future expectations of prices. Now, stay with me on this because it's important, right? So people are used to prices being stable. And then they become unstable. They start to rise.

So then they start to say to themselves, well, I'm going to have to get a higher wage because everything's gone up. So they go to the employer and say, give me a higher wage. And the employer says, no, because I'm dealing with higher prices. And they said, well, fine. We'll go on strike. Now, remember, this is the 70s. 25% of people were in unions at that point in time.

So then they start to say to themselves, well, I'm going to have to get a higher wage because everything's gone up. So they go to the employer and say, give me a higher wage. And the employer says, no, because I'm dealing with higher prices. And they said, well, fine. We'll go on strike. Now, remember, this is the 70s. 25% of people were in unions at that point in time.

So then they start to say to themselves, well, I'm going to have to get a higher wage because everything's gone up. So they go to the employer and say, give me a higher wage. And the employer says, no, because I'm dealing with higher prices. And they said, well, fine. We'll go on strike. Now, remember, this is the 70s. 25% of people were in unions at that point in time.

Back in the day, things were made in the country. If you went on strike, you held up the production of the firm. So then the employee goes, oh, shit, I'll have to give you a pay rise. So then they give you a pay rise. And then to cover that cost, they then raise their prices. And this creates what economists of the time called a wage price spiral. And it just kept going up and up and up.

Back in the day, things were made in the country. If you went on strike, you held up the production of the firm. So then the employee goes, oh, shit, I'll have to give you a pay rise. So then they give you a pay rise. And then to cover that cost, they then raise their prices. And this creates what economists of the time called a wage price spiral. And it just kept going up and up and up.

Back in the day, things were made in the country. If you went on strike, you held up the production of the firm. So then the employee goes, oh, shit, I'll have to give you a pay rise. So then they give you a pay rise. And then to cover that cost, they then raise their prices. And this creates what economists of the time called a wage price spiral. And it just kept going up and up and up.

Now, that's a super dangerous thing because it's going to get out of control. You're going to get to what we call hyperinflation when it's just totally think Argentina, right? This sort of stuff.

Now, that's a super dangerous thing because it's going to get out of control. You're going to get to what we call hyperinflation when it's just totally think Argentina, right? This sort of stuff.

Now, that's a super dangerous thing because it's going to get out of control. You're going to get to what we call hyperinflation when it's just totally think Argentina, right? This sort of stuff.

So what we need to do is slam on the brakes. So how do you slam on the brakes? Well, you can't ask the government to do it. They're the criminals. They're the ones who are spending the money. So you've got to go to the police. Who are the police? The central bankers.

So what we need to do is slam on the brakes. So how do you slam on the brakes? Well, you can't ask the government to do it. They're the criminals. They're the ones who are spending the money. So you've got to go to the police. Who are the police? The central bankers.

So what we need to do is slam on the brakes. So how do you slam on the brakes? Well, you can't ask the government to do it. They're the criminals. They're the ones who are spending the money. So you've got to go to the police. Who are the police? The central bankers.

Paul Volcker is the central banker who's appointed by Jimmy Carter to run the Fed. And he basically says, right, I'll sort this out. I'm going to make the cost of borrowing money eye-wateringly expensive because I'm shoving interest rates up to 16%, 18%. But what happened was the inflation rate collapsed. And then by 1984, the inflation was more or less over.

Paul Volcker is the central banker who's appointed by Jimmy Carter to run the Fed. And he basically says, right, I'll sort this out. I'm going to make the cost of borrowing money eye-wateringly expensive because I'm shoving interest rates up to 16%, 18%. But what happened was the inflation rate collapsed. And then by 1984, the inflation was more or less over.

Paul Volcker is the central banker who's appointed by Jimmy Carter to run the Fed. And he basically says, right, I'll sort this out. I'm going to make the cost of borrowing money eye-wateringly expensive because I'm shoving interest rates up to 16%, 18%. But what happened was the inflation rate collapsed. And then by 1984, the inflation was more or less over.

And it was Reagan's famous morning in America.

And it was Reagan's famous morning in America.