Inflation indicators are “flashing red alarm” according to former US Treasury Secretary Larry Summers, who warns that the Biden administration’s economic stimulus “is providing demand well in excess over the next couple of years of any plausible estimate of the economy’s potential to produce.”
Y’think? Every survey of prices paid to US businesses, including several from regional Federal Reserve banks, shows the fastest price gains since 2007, just before the Great Financial Crash. Asia Times’ own calculations show that inflation already in the pipeline points to 4% year-on-year consumer price inflation and 8% wholesale price inflation by midsummer.
The former Treasury chief and Harvard University president might have added that the US government is doing everything possible to constrict the supply of factors of production at the same time that it pumps up demand.