There is considerable inflation. It’s just confined to the asset markets and leaks through on parts of the economy that can’t be automated or outsourced, like real estate, college, healthcare, etc.

When interest rates are 2–3 % and the markets are going up 5–6%, a lot of money gets borrowed into existence to play the markets and they go up 6–7% etc, creating a positive feedback loop. Which can’t be as easily unwound, or the banking system freezes up and the whole web of contracts start falling like so many dominos.

So then the government either has to backstop the whole mess, as in 08 and give them a trillion, let the system crash and your atm account doesn’t work, or take it over and have the politicians in charge.

Rushing off to work my own self…..