It's important to recognize this as a coda to the Fed-triggered recession of the early 80's, which kicked off the highly-outsourced era of the US economy. At that time, inflation and dollar stability was also a concern and the answer was simply to bring down the hammer and smash up some old-line businesses to clear way for new ones that were more engaged in the trends taking place towards computerization and globalization. With the start of this era we also saw the move towards income inequality and asset inflation.<p>Now, even though the scenario is nominally similar in some respects(high inflation triggers Fed action) the difference is that we're seeing a pendulum swing towards reindustrialization: security threats, logistical concerns, rising overseas wages and cheaper local energy all create the conditions to build businesses and employ workers in domestic markets. Unions have seen some reactivation after decades of decline. Everyone says the labor market is "tight", and sectors that can't keep up with wages or benefits are getting shoved aside.<p>That is, we're in an economy that is likely to boom again in a relatively short time frame, but in a manner that exceeds our existing institutions. It won't resemble the previous decade's combo of expensive assets, underemployment and easy credit.