Inflation is like a banana

Inflation, inflation, where for art thou......'hiding' in the price increases and decreased size of every day items that we purchase, I would gesture to say....

Watch Bernanke’s ‘Little’ Inflation Capsize U.S.: Shlaes

http://www.bloomberg.com/news/2012-03-14/watch-bernanke-s-little-inflation-capsize-u-s-amity-shlaes.html

Excerpts:

Another way to put this is how the central banker Henry Wallich did. Inflation is like a banana, Jerry Jordan of the Cleveland Fed quoted him as saying. Once you see one brown spot, it’s too late.

The reason that markets haven’t jumped yet is that the last great inflation and correction happened in the late 1970s and early 1980s, just long enough ago that most adults in the financial markets don’t remember it.

We can debate whether today’s challenge resembles that faced in the early 1980s, or something worse. But one thing is clear: pretty soon, we’ll all be in deep water.