I believe that this country will have some degree of inflation in the coming years.
The only question is how much and can it be contained so it does not become excessive.
I base this on the fact that this country has always had some degree of inflation.
Using the Consumer Price Index inflation guide, the $700 that I paid for land in 1964 would mean that I this land should be worth $5000 today, which it probably is considering the price of grain today.
If this trend continues, will politicians use inflation to control and pay off our national debt.
Good neighbor of mine that has passed on said the price of gas has alot to do with things --like in 60's-gas .25---car $2500 late 70's gas-- .65---bought plain jane 150 ford 4x4--$6750--- now $3.25 gas --$32500 pickup so far for 40 years it has been fairly accurate--where this formula leads us from here is anybodies guess ? ?
That has been the Fed's plan all along. Inflate our way out of the financail hole our country is in. Problem is that deflation is dominant in some segments of our economy such as housing. In addition the decline in credit usage by the consumer has also helped keep inflation in check. On the other hand commodities have become the speculators playground and the run up in prices reflect that.
The Fed is walking a fine line. They could very easily overinflate our economy with hyperinflation resulting. Of course, we all know that Ben B is too smart for that to happen.