Coolidge was a lawyer, not an economist, but his experience seems to have convinced him that the boom was close to exhaustion. I'm not suggesting he knew about the figures, merely that he may have developed a Coolidge-like sixth sense regarding the current boom. After all, it has roared ahead for nearly nine years. Which of course brings us to the CPI figures. Now one set of bad figures do not portend disaster, Ask Mr Rubin, and the next set might be less unsettling.
Economic laws are universal and immutable.
But that too many, including those paid to know better, are far too quick to ignore the lessons of history and abandon the teachings of economics. So where does that leave us with inflation and volatile markets. In a very sticky position, I fear. How did any of these advisers imagine that a consumption-led boom could continue without eventually sparking a price rise. I know Greenspan knew it was only a matter of time.