From the Gowdie Family Wealth (AUS) – For decades, the word ‘deflation’ rarely entered our economic vocabulary. Inflation was everywhere and anywhere for so long that we referenced graphs as ‘inflation adjusted’, or talk in “real (after inflation)’ terms. While inflation appears to be an ever-present force, history sows us that has not always been the case.
It took two World Wars and a Great Depression before the Fed eventually steadied the economic ship. From 1945 onwards, the US economy has been ‘inflation-only’, courtesy of a multi-decade expansion of debt and money supply.