Loading ...It looks to me like the Covid has been taking away the “punch bowl” (fed on the brakes deflationary) and the Fed keeps pumping funny money into the system. (foot on the gas pedal) inflationary).
This reminds me of the 1970s. The fed was pumping money into the system 1934 to 1970. The over printing started true inflation higher prices. Including great profits and wages and a budget surplus in 1969.
So after 1970 they hit the brakes hard, removed the punch bowl, raised rates 5% to 21% in 1980. The higher prices during the 1970s was the lagging inflation results of 1934 to 1970.
So, in a sense like today the gas and the brakes were on at the same exact same time. They took their foot off the gas, and hit the brakes in 1970 to ’80 but the prices roared higher anyway as they were behind the curve until the 21% rates finally kicked in. And started a commodity deflation 1980 to 2000.