What about inflation?
Petroleum import prices soared 50.1% last year. That was the biggest yearly increase since the 56.9% surge in 2002. Meanwhile, agricultural prices soared 23.5%. There has never been a bigger gain in the 22-year history of the import price data series.
Here's one other thing I've pointed out in previous posts: Cheap imports from China provided a nice deflationary offset to some of the inflationary forces we've faced in recent years. But now, Chinese imports are RISING in price. In fact, they gained 2.4% last year, the biggest yearly rise on record.
Bond traders have been more focused on growth than inflation in recent months. But while all Treasury prices have risen and all bill/note/bond yields have fallen, long yields have fallen a lot less than short yields. That's causing the yield curve to steepen quite a bit -- a sign that longer-term inflation concerns could come back with a vengeance once the economy stabilizes.