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The "no one" he refers to includes dozens of semiconductor companies, who in years past were too busy trying to keep up with overheated demand for chips of all kinds.
At some point, the Fed's natural inflation-phobia will kick in, even though higher food and energy prices have nothing to do with overheated demand (with unemployment stuck near double digits, demand is still too low, not too high).
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Government fiscal spending on social programmes, infrastructure and on the bureaucracy remains expansionary, and has resulted in both overheating demand and rising inflation.
This week, the British Retail Consortium's shop price index showed that prices had fallen by 0.7% in July, bringing annual inflation down to 1.2%—hardly consistent with overheating consumer demand.
The World Bank and the IMF both say the economy is overheating, domestic demand is outpacing growth, industry is running near full capacity and real wages are growing faster than productivity.
Output levels have become a subject of considerable interest in international financial markets as investors try to assess whether China's economy is overheating, with demand outstripping supply to an extent that may cause inflation.
A positive output gap suggests an economy is at risk of overheating: the demand for goods is outstripping supply and one would expect prices to rise.
A widening current-account deficit can be a classic sign of overheating, as domestic demand outpaces supply.
Some industry-watchers believe there has to come a point where sustained price rises become unsustainable, as either demand tails off or supply becomes overheated.
Moreover, the leap in inflation does not seem to be a symptom of overheating caused by excess demand, as it was in the past.
Overheating, high cooling energy demand and glare are common concerns in office buildings in Santiago de Chile.
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