(International Man)—The reason for the dangerously high growth rates of Fed credit is what might be termed the inflation confirmation fallacy. That is to say, once high inflation broke out for the first time in peacetime history, flummoxed mainstream economists soon embraced the notion that the central bank should midwife a gentle, gradualist cure by “accommodating” some significant part of the rising price level, lest a too stingy growth of Fed credit would cause real interest rates to soar and bring the economy to its knees.
The effect of this unfortunate assumption was the introduction of inflation rate management into the Fed’s remit, tool kit and vocabulary. While the official 2% “goal” did not materialize until decades later, it did creep into practice on a de facto basis under Volcker and his successors. At length, the idea that the Fed was not simply managing bank reserves and credit, but was in charge of the performance of the entire GDP including the rate of increase in the general price level became deeply embedded in the institution.
To be sure, Paul Volcker was exceedingly cautious on the matter of accommodating the embedded inflation and bringing down the rate of price increase in a deliberate manner, but he was also a sound money man at bottom. He was willing to accommodate existing inflation to only a limited degree and was ready to risk a recessionary contraction if that was required to break the back of financial speculation and the extant spiral of wage/price/cost inflation that had become embedded during the 1970s.
In fact, that’s actually what did happen and the deep recession of 1981-1982 did accelerate the pace of disinflation. From the peak Y/Y rate of 14.6% in March 1980, the CPI increase slowed sharply to just 2.36% as of July 1983.
At that point, however, Volcker was reluctant to press the case back to old-fashioned notion of price stability, even as he was forced to cope with the Texas cowboy (i.e. James Baker) who had taken over the Treasury during Reagan’s second term. The latter forced through the abomination of the 1985 Plaza Accord, a globally “coordinated” and/or imposed maneuver to trash the strong dollar, thereby importing inflationary pressures back into the US economy.
In any event, the Y/Y inflation rate bottomed at 1.91% in February 1987 and that very month Howard Baker became chief of staff at the White House. From that point forward the two Bakers—James and Howard, who were both easy money inflationists–operated a de facto GOP (the Republican Party) regency in the Reagan White House. So doing, they were not about to have the independent Volcker getting in the way of Republican electoral success.
So Paul Volcker was out, and his successor, Alan Greenspan, soon faced the infamous 22.6% stock market collapse on October 19, 1987. Thereupon, the once and former gold standard advocate and Ayn Rand disciple opened up the spigots at the Fed’s money-pump, thereby initiating a new surge of inflationary pressure during the last years of the 1980s.
As is evident by the chart below, Volcker’s partial victory over inflation was short-circuited after mid-1983. In all, the price level rose by 71% or 3.3% per annum through the next stock-market meltdown, when the NASDAQ plunged by 33% during 30 trading days in March/April 2000.
Y/Y CPI Change, March 1980 to March 2000
Greenspanian “Wealth Effects”
This capitulation to permanent, residual inflation in the 2-4% zone was a huge historical mistake. It opened the way for Greenspanian “wealth effects” management and the resulting economic abominations. That is, a battered main street economy, which gave way to massive off-shoring of America’s industry, coupled with the relentless inflation of financial assets, which showered Wall Street and the 1% with hideous amounts of unearned windfall wealth.
The trigger for this untoward breakdown was Greenspan’s fundamental policy error. He invented the spurious argument that residual inflation at 2-3% was good enough, when the actual requirement was to purge the inflationary cost structure that was already embedded in the US economy owing to the inflation spree of the 1970s.
What resulted from the Greenspan pivot was nothing more than a great inflationary disaster which amounted to monetary central planning and pro-inflation targeting by the central bank. Suffice to remind why a huge share of America’s merchandise goods are now sourced in China and other parts of the global low-wage supply chain. To wit, the Fed simply inflated American workers out of their jobs via soaring unit labor costs, which became increasingly noncompetitive in global markets.
U.S. Unit Labor Cost Growth, 1970 to 2024
Editor’s Note: The amount of money the US government spends on foreign aid, wars, the so-called intelligence community, and other aspects of foreign policy is enormous and ever-growing.
It’s an established trend in motion that is accelerating, and now approaching a breaking point. It could cause the most significant disaster since the 1930s.
Most people won’t be prepared for what’s coming. That’s precisely why bestselling author Doug Casey and his team just released an urgent video with all the details. Click here to watch it now.
Bypass Big Tech Censors
Starting the Day With a Scripture-Inspired Roast Helps Center Your Thoughts on Eternal Truths Amid Temporal Pressures
The world can seem chaotic, especially right after we wake up. Many believers start their mornings reaching for something familiar — a hot cup of coffee — yet end up settling for mediocre brews that do little more than deliver a caffeine jolt. The daily grind of life, with its endless distractions, news cycles, and responsibilities, can leave even the most faithful feeling spiritually parched alongside their physical fatigue. What if your morning ritual could do more than wake you up? What if it could ground you in truth, nourish your body with exceptional quality, and quietly advance a kingdom purpose at the same time?
That’s the promise — and the reality — behind Promised Grounds Coffee. This Christian-founded company doesn’t just roast beans; it approaches every step as an act of worship and discipleship. By selecting only the top 10% of specialty-grade beans, ethically sourced from dedicated farmers in Central and South America, and small-batch roasting them with reverence in Austin, Texas, Promised Grounds delivers what many describe as the best coffee available — never burnt, never bland, but rich with origin stories and layered flavors that honor God’s creation.
From the vibrant Psalm 27 Roast (a light, bright medium option) to the bold yet peaceful 2 Timothy 1:7 Decaf, each bag carries a Scripture verse that turns your daily pour into a gentle reminder of faith. And through their Ounce Per Ounce Promise, every ounce of coffee you enjoy provides an equal ounce of clean water to families in need via partnership with Filter of Hope — literally brewing hope for body and soul, one cup at a time.
The challenge for today’s Christians runs deeper than finding a decent cup. In an age of convenience-driven consumerism, it’s easy to support companies that dilute values or remain silent on matters of faith. Many believers want their everyday choices — from what they drink to how they spend — to reflect discipleship rather than just convenience. Promised Grounds solves this by weaving Christian excellence into the entire process: beans nurtured with prayerful stewardship by farming families, roasted as an offering rather than a commodity, and packaged with Bible verses to encourage a mindset of gratitude and purpose from the first sip. Reviewers consistently praise the smooth, rich profiles — whether enjoyed black in a drip maker, iced on a warm day, or shared in fellowship — noting how the quality stands toe-to-toe with premium secular brands while delivering something far more meaningful.
This integration of faith and flavor addresses a real need in Christian households and ministries. Busy parents, church leaders, and remote workers alike report that starting the day with a Scripture-inspired roast helps center their thoughts on eternal truths amid temporal pressures. The coffee’s exceptional character — bright citrus notes in lighter roasts or deep chocolate undertones in bolder ones — comes from meticulous selection and careful roasting that respects the bean’s natural gifts rather than masking them. It’s the kind of coffee that elevates a simple quiet time, fuels productive workdays, or sparks meaningful conversations when shared at Bible studies or outreach events. And because it’s ethically sourced with integrity, every purchase supports sustainable livelihoods for farmers who treat their crops like family harvests.
For those leading churches or small groups, the impact multiplies. Promised Grounds offers bundles and options perfect for hospitality ministries, turning ordinary coffee service into an opportunity to point people toward the living water of Christ. Imagine greeting visitors with a warm cup whose very bag carries God’s Word — a subtle yet powerful witness that aligns with the Great Commission. The company’s Texas roots and commitment to “brewing hope” resonate especially with believers who value American enterprise paired with global compassion.
Of course, quality alone isn’t enough if the experience feels out of reach. Promised Grounds keeps it accessible with practical perks like free shipping on orders over $40, sample sets for discovering favorites, and thoughtful add-ons such as faith-themed mugs. Whether you prefer whole beans for fresh grinding, grounds for convenience, or even bulk options for larger households and ministries, the result is consistently superior coffee that makes discipleship feel integrated rather than added on.
As you consider how to align even the smallest habits with your walk with God, Promised Grounds Coffee stands out as a refreshing solution. It tackles the dual problems of subpar daily sustenance and disconnected consumption by offering a product that genuinely excels in taste while advancing a mission of clean water, farmer dignity, and scriptural encouragement. Believers who make the switch often describe it as more than a beverage upgrade — it becomes part of their rhythm of gratitude, a daily invitation to remember that every good gift comes from above.
If you’re ready to transform your mornings (and perhaps your church gatherings) with coffee that honors both exceptional craftsmanship and Christian values, I encourage you to explore what Promised Grounds has to offer. One sip at a time, you’ll be nourishing your body, refreshing your spirit, and participating in something far greater — all while enjoying what truly is among the best coffee available.