Inflation (or more properly “DEFLATION of the value of money”) Takes a good while to work into the system. The inflationary times of the 1970s actually took over 5 years to ramp up after years of goosing the money supply. The first “shock” came with the arab oil embargo in 1973, but we had been running a guns and butter economy since 1966.
That is the good part. The bad part is that once inflation gets imbedded in the general flow of the economy, it is extremely difficult to get out.
The fed is absolutely terrified of the deflationary implosion they have seen in Japan for the last 20 years. So much so that they are committed to do the same dumbass stuff the BOJ did and hope that the results will be better.
Three quarters of our problem has been federal reserve policy of goosing money supply. The other fourth comes when they try to “address” the problems they create.
The federal reserve is stupid, corrupt, incompetent, and horribly destructive. They have pissed away over 96% of the value of the dollar in less than 100 years simply by being allowed to ratchet up the money supply far in excess above the rate of growth our economy has experienced. The curve has been practically asymptotic for the last 27 years or so.
What are the current growth rates of the various monetary aggregates for the last yr.?