Smart Gal—or a Guy in the History department who needed a publication so he could get tenure—once said history repeats itself. Yep. Inflation is back.
My daily Journal article says, “U.S. inflation reached a nearly four-decade high in November, as strong consumer demand collided with pandemic-related supply constraints.”
Let’s talk about those inflationary 1970s and 1980s. Remember well when President Jimmy Carter—one of the world’s better guys, Naval Academy graduate, charitable carpenter—presided during gasoline shortage and interest rates of ten per cent.
Happened to meet my Abilene auto dealer family members in the Austin airport. Asked, how’s the auto business going? Answered, we’re not keeping up. Sold our dealership. Now lending money at 10 per cent interest. We never made 10 per cent profit selling cars.
Invested with Fred-the-Printer Barbee in the El Campo bi-weekly newspaper. Previous owner took our note and charged six percent interest. He went into the banking business. When interest rates rose to ten percent, he begged us to pay off our note. Fred suggested he fix the roof on the building we rented from him.
Happened to remember those Carter days when I read four-decade high for inflation. Then read interest rates expected to rise.
My advice today, get ready to sell your auto dealership. Most folks can’t afford one of those electric autos. Greens shutting down oil wells. And making ten per cent on a secured loan looks likely.
Photo by Maxx-Studio at Shutterstock
