the fact that matters: the 1980s saw 18% inflation, yet the 1990s still had a 30-year bull run in assets, including real estate and stocks.
Good historical context. The 1980s did see very high inflation, and the subsequent decade showed that asset markets can recover and grow even after a difficult period.
One important difference: in the 1980s, the Federal Reserve raised interest rates dramatically to bring inflation down. Paul Volcker pushed rates above 18%. That tool is harder to use today with a debt load over $36 trillion. Higher rates mean higher interest payments on government debt.
So the historical pattern may not repeat the same way. The structural conditions are different. Lower debt in the 1980s gave the Fed more room to maneuver.
For anyone new to this: inflation means your money loses purchasing power over time. The question is what preserves value across decades. That is the debate Bitcoin enters into.
One important difference: in the 1980s, the Federal Reserve raised interest rates dramatically to bring inflation down. Paul Volcker pushed rates above 18%. That tool is harder to use today with a debt load over $36 trillion. Higher rates mean higher interest payments on government debt.
So the historical pattern may not repeat the same way. The structural conditions are different. Lower debt in the 1980s gave the Fed more room to maneuver.
For anyone new to this: inflation means your money loses purchasing power over time. The question is what preserves value across decades. That is the debate Bitcoin enters into.