Central banks around the world increase balance sheets from $2 trillion in 2008 to $6 trillion in 2013. The slow erosion of purchasing power in the US
The Federal Reserve has been trying with all its power to stoke inflation. This is not the stated mission and you will not hear this proclaimed over loud speakers but if actions speak louder than words, this is the policy they are following. Yet the Fed is picking winners and losers with their inflation targeting. The reason the CPI for example is not reflecting major changes is the massive wealth destruction that has occurred in the debt markets, particularly with mortgages. In a system like our own, debt is money and there has been an enormous amount of debt that has been destroyed. Yet the Fed has aided the banking system by forcing rates lower and thus keeping asset prices higher for the mistakes taken on during the bubble years. This provides little support for working and middle class Americans. For example, this hurts fixed income savers including our rapidly aging older population. Also, even a modest amount of inflation is destructive should incomes remain stagnant.
Inflation is very high if incomes are stuck
We only experienced a brief bout of deflation in 2009 but since that point, inflation has been running at a steady clip: