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Inflation, Consumption, and the Fed Balance Sheet
People had excess savings as a result of the support by the gove. What it leads to in terms of debt and fed balance sheets is different matter, not relevant for this discussion. The point was that you kept consumption going. People got more money than they were used to. We learned a long time ago that inflation is everywhere a monitary phenomenon, right? You pumped so much money into the system, you have inflation. Now we have the worst of both worlds, because we are not self sufficient in many things,. Most of all, the two oils, edible oil and crud oil, both of them. They depend on imports - 70% or 80%. And now we're having