In a post yesterday I noted that an AP story on the latest inflation numbers, while pointing out that the CPI took a big jump in February, focussed on the “problem” of deflation. This little video from the Glenn Beck show looking at the money supply since 1929 should explain just how silly that concern is right now. In addition, according to today’s WSJ, the Fed is in the process of buying up massive amounts of government debt to provide more “liquidity” to the system–i.e., increase the money supply even further. What we are looking at is the perfect recipe for a 1970s style stagflation (high unemployment and high inflation at the same time).  To make it simple, inflation is “too much money chasing too few goods and services.” Because of the recession the quantity of goods and services is in a slump. Because of the Fed, the money supply is at an all time high and rising. You do the math.