Ben Bernanke was right – if you put your mind to it, and print enough money, you CAN prevent deflation.
New CPI numbers show that the core CPI (excluding food and energy, which nobody really uses anymore) actually jumped 0.3% last month, their largest increase since June 2008. About 40% of that increase came from tobacco taxes though, so you can bet our economic leaders are congratulating themselves on a “Goldilocks” inflation/deflation scenario.
Now they just have to figure out a way to put all that newly printed money away – shove all that toothpaste right back in the tube – and we’re all set.
Recommended reading: Andy Kessler on why Bernanke should spell out plans to combat hyperinflation.