
As spring dawns, the economy’s green shoots have been trampled once again, first by the economic fallout from Japan’s tsunami, and again by rising worldwide commodity prices.
The disruption of Japan’s production revealed the soft underbelly of globalization — the reliance on vulnerable global supply chains only as strong as their weakest link. Rising food and energy prices produce a toxic stew of inflation and unemployment.
This depressing news, of course, has political as well as economic consequences. Politically, it means that the incumbent party — Obama’s — faces even tougher going in 2012.
Economically, rising inflation makes it that much harder for the Federal Reserve to keep resorting to very low interest rates to levitate a sick




