Via the Economist’s Daily Chart feature comes the graphic below in defence defense of the view that the most recent commodities supercycle has not yet run its course.
From the short article accompanying the chart we learn that current China growth rates of about 7.5 percent today is the equivalent to 12 percent growth back in 2008.
As for the chart, it’s kind of hard to glean too much from the 19th century data since there was virtually no inflation the entire time. The notable exception was the Civil War period when both sides issued lots of paper money before order was restored.
Of course, things really changed when WWI started and the Fed began operating…