Those who think there must be raging inflation because oh no, there is more money supply now than at the top of the bubble, are deluded. Today US households have $7.8 trillion in bank deposits and CDs, up from $6.7 trillion in 2006. This is supposed to cause inflation, despite the same households having $4 trillion less in house equity, $4 trillion less in stocks, $3 trillion less in pension assets, $1 trillion less in mutual funds, and $1 trillion less in small business equity.
People unclear on the concept - it is *deflation*.
Agree there is aggregate deflation, but the devil’s in the details of what’s in the basket used to calculate inflation. I posit that there is considerable erosion of purchasing power in consumables (especially when combined with lower wages).