There are many ways that we see inflation in our financial system. Some we like, some we don't.

Lately, we've all become used to the principal form of inflation, which has been a direct result of the actions of the Federal Reserve. And that form of inflation is asset inflation.

In our society, we often give credit to so-called experts, for things which in reality are beyond their scope. A case in point is the Federal Reserve.

We assume that the Fed manages our interest rates, for instance. When the reality is that the Fed really only controls short-term interest rates. They do this by setting the Fed Funds Rate, the preeminent short interest rate.

Something profound happened was revealed yesterday. It was the announcement that inflation in the United States saw the biggest jump in years.

The nation had literally turned around from a low inflation environment, where inflation was contained in the 1 or 2% range for years. To now borderline high inflation, with yesterday's measure coming in above 4%.

Inflation: it's the most controversial and maligned of all the economic indicators. Almost no one thinks that it really measures the true rise in prices that are currently occurring in our economy.

It's an indication of just how difficult it is to source the raw materials, and components needed to complete finished products. For weeks now we've been reading about the idled ships off the coast of California, and other ports around the world. As the full effect of the worldwide shutdown, is really beginning to hit home.

And it's happening at an unfortunate time. Just when countries are starting to come back online with production. The ability to get source items is getting more and more difficult. And the result is that everyone is willing to pay more and more for those vital resources.

And if there is one, over-arching theme to nearly all of our public policy during this time, it is that each step that has been taken has had the result of down-sizing our economy.

Well, when my neighbor looses his job, that's a recession. If I should loose my job, that would be a depression. To paraphrase, the late President Reagan.

And for many the year 2020 will go down in history as a depression. The year the Covid Pandemic, and the economic lock-down which followed cause 22 working Americans to loose their job.

Fifteen Months ago a news story came over the wires that a highly contagious new Corona Virus had been discovered in China. It would prove to be one of the most significant news stories of the year. And one that continues to have a major impact on our lives today.

Yesterday, the Secretary of the Treasury, Janet Yellen attempted to raise the curtain on Act 2, of The Great Stimulus. Our country's on going economic saga.

The American consumer is the most powerful commercial force in the world. With a capability to direct billions, no make that actually trillions of dollars to whichever supplier meets their fancy.