Yet another reportage about the bewilderment of the Professionals and Professional Pundits regarding the lack of inflation. You only get inflation if the supply of moolah outstrips the supply of output. You don't need to understand all of Samuelson's book to know that; just any Econ 101 at your local community college.
All that GDP growth and earlier TARP and QE money went to the rich folks. It's a tautology: as income/wealth get infinitely large, marginal propensity to consume gets infinitely small. All the excess moolah never makes it to Macy's. There's also the reason the asset markets have gone up into the stratosphere starting with TARP and all the rest. The rich folks take all this new, excess, moolah and chase assets. Mostly, they chase Treasuries since they're scared little bunnies.
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