LI wrote a little post a while back in which we claimed that the great deflation scare was being used to promote the traditional policy of an American government that does not want to pay for its wars -- and its tax cuts. This policy amounts to stoking inflation. Along with the falling dollar, we claimed that the Bush-ites, with Alan Greenspan's compliance, had unleashed the monster -- and that we are going to feel that monster in the year ahead.

The latest figures on inflation seem to bear us out. The figures are skewed by rising house prices -- but the inflationary bubble is headed towards middle class and working class America, and it is coming at a time of high unemployment -- which equals stagflation. When it arrives, we do wonder what Greenspan, who has given up thinking long range in order to serve his master, will come up with, by way of excuse.

This, we think, is the wave of the future -- or the wave of back to the future. The Great Giveaway of the Bush years, like the Great Society of the Johnson years, is going to be on our back for the next decade.