The Fed tax and deflation

 

Here is what I mean. No matter what Bush did, deflation was not the problem.  Periodic and consistent deflation spikes started with the remits back to Treasury under Bernanke.

Covid is not Bernanke's fault, and it is an outlier. But it is clear that the negative covid spike will bounce around inside Bernanke's tax loop for some time.  Inflation is not soon in our future, we will make some decisions before that happens. Oil at forty, seems normal, there is a lot of past oil price volatility that reverts via short term deflation. That Fed tax is now a permanent and a large flat tax. A huge burden on the banks.