It is all over the news. Inflation is at a 41-year high (see: U.S. Inflation At Highest In Four Decades As Fuel Prices Soar). Yet, that is not the truth. The current dollar quotation prices of many items might be at 41-year highs, but inflation happened first and for a long time, between 2009 and 2019 and again between 2020 and 2021.
The high prices now are the effects of inflation. Inflation means a rise in circulating bank credit, i.e., in US dollars whether in wallets or in demand deposits, e.g., checking accounts. Rising prices does not mean inflation. Prices are effects and not causes. Prices can not cause themselves.
The Federal Reserve and Congress have colluded to inflate the currency since 2009. They did so because Americans entered into the Super Depression in 2009 after the Great Crash of Late 2007 into 2008.
Here is the true picture of inflation:
Federal Reserve - Congress inflation added $8.6 trillion in circulation but failed to add $8.6 in new goods and services over the same time.
Between 2009 and 2019, the effect this inflation, known as Quantitative Easing, went into stocks. Between 2020 and 2021, the effect of Quantitative Easing inflation went into house prices.
Since 2021, the effect of Quantitative Easing inflation has been to go into food prices and energy prices.
Always remember. Inflation is the cause. Rising prices is the effect.
Notice how everyone enjoyed inflation when stock prices were rising and hence their 401ks were rising. Now that food and energy prices are rising, which is causing stock prices to fall, people are whining about the very same inflation they once cheered about.
Supposedly, inflation is supposed to slow down as the Federal Reserve has promised to stop buying mortgage-backed securities and US Treasury bills, notes and bonds. We shall see.
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