Those of us old enough to remember it can recall the "stagflation" days of the 1970s and early 1980s. A former Federal Reserve banker is pointing out that the current economic situation bears a distressingly similar echo to those days, though with one important, ominous distinction: http://online.wsj.com/article/SB120511152715823437.html?mod=djemEditorialPage. That distinction is this: At least in the 1970s, we were fairly honest with ourselves about our economic indices. That is not the case now. How can you have a true measure of inflation where the cost of fuel and food is excluded? It would seem to me that strictly from a "logical" standpoint, that is where the analysis should begin. All of us, with few exceptions, have fuel costs (oil, gas, etc., to heat our homes, fuel for our cars, or fuel for the public transportation we use), and everyone without exception have to eat.
If the government won't even be honest with us about this basic fact, how can we trust it on this or any other issue?
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