If we wish to understand the 1970s (and subsequent American economic history), we must ask ourselves, what was the cause? Why did gold and oil advance so powerfully? Why did (consumer) prices go up faster than the money supply? Why did interest rates get into the mid-teens? (The prime rate in 1981 was reported as 20%; however, this was a false figure as the banks were trying to exaggerate. The actual high is best given by the T-bill rate, which hit 16% in May 1981.)
Money As Debt by By Paul Grignon (http://www.moneyasdebt.net/)
12. This will further contract business activity and start a downward spiral of unparalleled dimension because the size of US debt already issued is of unparalleled dimension.