Return of the Seven Cent Nickle

Are my inflation fears overblown? Perhaps — the surge in commodity prices ought to tamper demand, and even with today’s good jobs report it’s not exactly like the labor market is so tight that workers will demand (or get) inflationary wages.

That said, the Fed is monetizing more than half a trillion dollars in federal debt this year, and Washington continues to borrow money at unsustainable rates. Eventually, the urge — need? — to inflate that debt away might well prove irresistible.