The costs of too much government expenditure are felt immediately afterwards in the form of inflation and are not borne by future generations.
That will be when large deficits are imposing costs on the American people that are even worse in the form of inflation, high interest rates and economic instability.
Americans aren't feeling higher prices in the form of inflation yet (raw commodities are a small proportion of final food and product costs), but shipping methods are changing.
In Britain, a country that has "form" on inflation, 22.5% of government debt is in the form of inflation-linked bonds, making the strategy even more tricky (in the US, the ratio is 10%).Now, of course, inflation could arise by accident, rather than design.
A less obvious and smaller part of the supply story is the fact that some of the Treasurys debt issuance comes in the form of inflation-adjusted bonds.
Similarly, Warren Buffett warned in The New York Times that side effects of the current fiscal intervention could be as dangerous as the financial crisis recently averted in the form of inflation eroding the dollar's purchasing power.
Meanwhile, the effects of printing money would have already been working into the various economic systems in the form of higher inflation.
However, it will not occur for some time, at least in the form of labor inflation, which is the most significant.
And even Germany, where an export boom and high corporate profits have been paid for by workers in the form of below-inflation pay increases.
You could say the Bank's policymakers have gone in for bucketloads of forward guidance since 1993, in the form of the Quarterly Inflation Report.
