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The bottom line on Inflation is that the BROAD BASED American MC that is needed to sustain the Global Economy of Scale NO LONGER EXISTS..As such DEMAND becomes ANEMIC and has to be propped up with FED monetary policy and Treasury Spending. Thus a LONG TERM UNDERLYING DEFLATIONARY ENVIRONMENT. This has not changed and is only growing worse, where consumers are being priced out of markets.

So what skews that scenario.

1. Disruption of fragile Supply Chains which can create shortages which drives inflation. Especially after the CV shutdowns and growing geo political concerns makes supply chains uncertain and or unstable.

2. Reduced demand will cause a decrease in production which will drive unit costs higher which will be reflected by inflation.

3. Debasement of fiat currency by printing strips out the intrinsic value of said currency. Prices remaining constant in that situation is a form of hidden inflation.

Now here is the bad news...The FED and Treasury went all in to backstop the CV economic shutdown. Stretching the limits of an already stretched system. Long term FED and Treasury policies and the aftermath of CV has made the system unstable. In response to continuity being lost as the system unravels, the animal spirits have become desperately maniac in seeking to find some sort of safe haven for themselves. Rationality has been lost, this is resulting in a maniac blowoff stage in a last frantic attempt to hold onto what no longer exists. After the animal spirits exhaust themselves reality will set in and the slide will begin..Nothing will stop it..as with water the system will seek it's own level.

The question is will the slide be short and quick or slow and prolonged? Will a semblance of the system's structure remain or will it be Darwinian?