Monday, January 7, 2013

The Definitive Inflation Chart

The Definitive Inflation Chart
There are several takeaways from this chart: 1) Inflation was essentially non-existent until the creation of the Federal Reserve in 1913. 2) War, which requires massive government spending, promotes inflation. 3) Inflation has skyrocketed since Nixon took us off the gold standard in 1971, which gave the Fed a carte blanche to print. 4) All of Bernanke's "worry" about deflation has been nothing but an excuse to print. Clearly, deflation has never been anywhere close to being a possibility during the current chairman's tenure.
The Definitive Inflation Chart - historical CPI chart


Just for giggles, let's compare that last chart with a chart of the national debt:

The Definitive Inflation Chart - national debt chart


Is it clear enough that the Fed enables deficit spending?

2 comments:

  1. NEXT TIME YOU POST THE NATIONAL DEBT CHART PLEASE PROVIDE SOME HIGH ALTITUDE PILLS FOR US SIMPLE FOLK WHO STILL TRY TO LIVE IN A REALISTIC WORLD...THIS CANNOT GO ON! lennartlive.

    ReplyDelete
    Replies
    1. Thanks for the comment, but please refrain from shouting. Thanks.

      Delete

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