The elephant in the room is the bloated stock of money sitting in bank accounts

The excess savings of US households have reached $2.3 trillion. 

The New York Fed said people have been using a third of their unspent holdings to pay off debt. But that does not mean they will continue to do so. They may go on a spree instead as the country reopens.

Interest rates are zero and the Fed is still buying $120bn of bonds each month, directly financing part of Washington’s "war economy" debt issuance. 

It is persisting even though the broad M3 money supply has grown at 24pc over the last year. 

Ambrose Evans-Pritchard Telegraph 13 May 2021

https://www.telegraph.co.uk/business/2021/05/13/markets-losing-faith-federal-reservescredibility/

When the Fed increases the money supply, people they just sit on it

“What problem is cryptocurrency supposed to solve, exactly?” And at some point the answer always devolves to some version of “Fiat money is doomed because the Fed won’t stop running the printing press.”

So it seems to me that it would be useful to talk about why that’s a really bad take, and has been a bad take over and over again for the past 40 years.

These aren’t new insights. I wrote about all of this in the context of Japan back in the 1990s, and even that was mainly a formalization of insights many economists had held for decades. 

Paul Krugman NYT 13 May 2021

https://www.nytimes.com/2021/05/13/opinion/cryptocurrency-inflation.html

Summers Says Inflation Is Making Him Nervous

https://www.youtube.com/watch?v=WtGCmexfxO4