To Reverse Inflation Today and Prevent It Tomorrow, The Fed Should Short-Sell Commodities Now As We Speed-Up Production For Later

To Reverse Inflation Today and Prevent It Tomorrow, The Fed Should Short-Sell Commodities Now As We Speed-Up Production For Later

An engraving of a 13th century market scene, with merchants offering their wares and a mystery being ... [+] performed in the background. As I and too few others have argued since early on in the present pandemic, urgently needed demand-support measures like those taken in 2020 were bound to raise prices until accompanied by equi-proportional supply-support measures. You simply cannot add purchasing power to a macroeconomy without raising prices unless you add more, not produce less, of what's to be purchased as well. That is the source of our present inflationary pressures. These are indeed transitory, but will persist till our capacity to supply ourselves catches up with our capacity to purchase what isn't yet here to be purchased. In the medium-to-longer term, then, we'll end inflation only by ramping-up production of all essential goods, and all inputs to such goods – notably but not solely microchips – as quickly as possible. We must replicate, in effect, the feat of the Roosevelt Administration in taking America from producing just over 3, 000 warplanes per annum in 1939 to producing 60, 000 warplanes per annum by 1940 – after Germany's rapid conquest of France that spring sounded the ultimate 'wakeup