Boss
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- Apr 21, 2012
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Wiki, hahaha!It was St Ronnie who sent interest rates over 20%Did you know that interest rates under Carter were over 21%.
That is a patently false statement.
Presidency of Jimmy Carter - Wikipedia the free encyclopedia
Led by Volcker, the Federal Reserve raised the discount rate from 10% when Volcker assumed the chairmanship in August 1979 to 12% within two months.[72] The prime rate outstripped the Federal funds rate, reaching 20% in March 1980. Carter then enacted an austerity program by executive order, justifying these measures by observing that inflation had reached a "crisis stage"; both inflation and short-term interest rates reached 18 percent in February and March 1980.[73] Investments in fixed income (both bonds held by Wall Street and pensions paid to retired people) were becoming less valuable in real terms, and on March 14, 1980, President Carter announced the first credit control measures since World War II.[74]
The policy, as well as record interest rates, would lead to a sharp recession in the spring of 1980.[75] The sudden fall in GDP during the second quarter caused unemployment to jump from 6% to 7.5% by May, with output in the auto and housing sectors falling by over 20% and to their weakest level since the 1975 recession.[59] Carter phased out credit controls in May, and by July, the prime rate had fallen to 11%,[72] with inflation breaking the earlier trend and easing to under 13% for the remainder of 1980.[76] The V-shaped recession coincided with Carter's re-election campaign, however, and contributed to his unexpectedly severe loss.[68]
Lower interest rates and easing of credit controls sparked a recovery during the second half of 1980, and although the hard-hit auto and housing sectors would not recover substantially,[59] GDP and employment totals regained pre-recession levels by the first quarter of 1981.[62][63] The S&P 500(which had remained at around 100 since 1976), rose to nearly 140 by the latter part of the year.[77] A resumption in growth prompted renewed tightening by the Fed, however, and the prime rate reached 21.5% in December 1980, the highest rate in U.S. history under any President.
Douchebag Demagoguery, hahaha!
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