"Unearned demand." Very well put. Thousands of pages of analysis and a year of debate on inflation-deflation, when this is the elephant in the room to explain persistent, broad-based inflation. Why? Too many vested interests (mostly politicians) had no incentive to admit this monetary/fiscal overdose. And now, the Fed is compounding the error by popping the asset bubbles it created, and potentially pushing demand back down to meet supply at a lower "equilibrium" (if there is such a thing). In the end, will lower levels of supply and demand spark a crisis in private-sector debt servicing capacity? That may be the next question to explore.
Love me a good biblical reckoning. We've been focusing too long on unreal problems, that the real problems have finally shown up.
"Unearned demand." Very well put. Thousands of pages of analysis and a year of debate on inflation-deflation, when this is the elephant in the room to explain persistent, broad-based inflation. Why? Too many vested interests (mostly politicians) had no incentive to admit this monetary/fiscal overdose. And now, the Fed is compounding the error by popping the asset bubbles it created, and potentially pushing demand back down to meet supply at a lower "equilibrium" (if there is such a thing). In the end, will lower levels of supply and demand spark a crisis in private-sector debt servicing capacity? That may be the next question to explore.