Friday, February 20, 2009

Inflation Resumes

Inflation resumed in January -- good news if you do not want to follow the path of 1930.

The chart below shows the CPI in 1929-30 and 2008-9, normalizing Oct 1929 to be 100 (the stock market crashed at the end of that month) and Oct 2008 to be 100 (the stock market crashed at the beginning of that month).

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