Slide #9 - U.S. consumer prices have been in a disinflationary state since 1980
We do not argue that the inflation rate as reported by the U.S. government is accurate. To the contrary, we think it has been much higher than reported. However, as someone who lived thorough the 1970s, it is clear that the rate of inflation has been in decline since its 60 to 70 year long Kondratieff cycle peak in 1980. This is particularly noteworthy given the huge growth in money, as pointed out in slide 5. How could it be that the rate of inflation is declining at a time when the supply of money is rising so dramatically?