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.
Just for giggles, let's compare that last chart with a chart of the national debt:
Is it clear enough that the Fed enables deficit spending?