Sorry Inflationistas, But This Chart Proves You Were Wrong

Comments (2)

  1. Adam Sharp says:

    Direct monetization of debt only really got rolling last year. These things don’t happen overnight.

    Look at M2, or Austrian TMS over the last 6 months! If/when more gas is poured on the fire (QE3,4,5,6,7) or lending & money velocity pick up … That’s when it’ll really hit home.

    BTW – you should look into hedonic adjustments and other manipulations made to CPI today (wasn’t always so, which makes those charts questionable at best).


  2. Tim says:

    What the author has failed to mention is that inflation and deflation are not two forces that offset one another 1 to 1 which leads to a very interesting situation in which deflation and inflation take place at the same time.For example you can have a deflationary collapse in credit and real estate but inflationary explosion in commodities and precious metals simultaneously.Eventually what matters to an average consumer is their cost of living , not what happens to the credit markets.If you have got a collapse in the credit markets but at the same time oil prices rise by 100% then the consumer is gonna have a problem.Of course the government will be explaining to all consumers that this does not matter because prices for other things are falling and this inflation in groceries , gas and many other things is not inflation at all and is totally offset by falling prices for computers , ipods and Miami condos (too bad that people without job and savings can not buy all these things , ha?).The point is that you can not change reality with fancy charts , inflation in the US is close to 10% today if you count food and energy and it is gonna become a LOT worse


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