. . . gimme a . . . t-i-o-n. Wha’ do you got? You got INFLATION.
It looks like the analytical geniuses over at the San Francisco Fed have finally figured out something that Larry Summers anticipated nearly a year ago: When you pump trillions of dollars of stimulus spending into the economy, it causes inflation to overheat to the highest level in a generation.
Of course, Summers was aggressively poo-poo’d by policy nabobs at Treasury . . . when he first projected that inflation would likely exceed 5% by the end of 2021 thanks to the federal government’s decision to hand out trillions of dollars in stimmies, benefits and PPP loans (combined with the Fed’s ’emergency’ policy posture that involved backstopping corporate debt and slamming interest rates back down to the zero-bound).
Biden did it, or stood by while his people did.
While he has since been vindicated, at the time, Summers was nearly excommunicated by his fellow Democrats for having the audacity to suggest that the federal government shouldn’t have ridden to the rescue of ordinary people during a once-in-a-century pandemic (or, at the very least, it maybe should have considered a more measured approach).
Wha’? And lose all that good will from stimmie recipients?
Now, months after Summers inflationary fears were vindicated, the Fed has finally summoned the courage to acknowledge that maybe the government’s balls-to-the-wall COVID stimulus was responsible for stoking the voracious inflationary spiral that – contrary to Jerome Powell’s assurances – has been anything but “transitory”.
Oh, when will they ever learn? Oh, when will they ever learn?
Blithe Spirit 