Bernanke & Hockey Stick Inflation

Yesterday, in his biannual testimony to the USA Congress, the president of the Federal Reserve, Ben Bernanke, asserted that inflation under his and Mr. Greenspan’s mandate was no more than 2% a year. While this might be “true” using Bureau of Labor Statistics (BLS) data, please check ShadowStats for a true picture of inflation in the USA. Even using BLS data, it is very informative to check a chart of inflation of the USA from 1775 until 2012. Please note 2 dates: the creation of the Federal Reserve in 1913 and the decoupling of the US Dollar from gold under the Nixon administration in 1971.

Inflation under 2% per year? Look again

InflationChart

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