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Trump’s Economic Era

take money out of savings and invest in the stock
market or other risky ventures.

The rule of 72 will give you an idea of the impact
of inflation over time. Take any incremental increase
and divide the number into 72 and you will get an
approximation of how long it will take prices to double.
For example, if the inflation rate is 2% each year, it will
take about 36 years for
prices to double
In 1980, the prime (72/2=36). If the
interest rate in America inflation rate is 4%, it
was 21 percent! will take about 18
years for prices to
double (72/4=18).
Because of the 10 percent annual inflation rate in
the 1970’s, the prime interest rate topped at 21 percent!
Imagine what would happen if the federal government
had to pay 20 percent interest on a $21 trillion national
debt! Twenty percent of $20 trillion is
$200,000,000,000!!

THE BRETTON WOODS SYSTEM
World War II had a devastating effect on the
global monetary system. A plan for restoring order
came in 1944 at Bretton Woods, New Hampshire, with
a meeting of delegates from Allied nations. Of
paramount concern was replacing the British currency
as the standard for settling international transactions.
High gold reserves in America made the U.S. dollar a
natural replacement. Because all nations pegged their
currencies to gold at predetermined rates, all countries
knew the value of their money relative to gold. The

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