We need a bigger inflation bulge to have a good crash

This chart is familiar, the real inflation after all the revisions.  The story in the economy is simple, over lending, the lenders takes losses during the crash. That is when the curve inverts.  The financial industry consolidates, at each recession, and long term liquidity removed.   So, as time goes on, since the Nixon shock, the increasingly consolidated financial sector mostly deals with funneling the interest payments and suppressing lending.

Our last inflation bulge, since 2009, has been well contained, and our recession likely to be mild and short.   But our growth will be lower, we have used up our lending infrastructure.  Banks are closing retail branches and fixed rate traders being let go. 

Solution?

Separate the currency banker from its primary role as an agent of Swamp financing.  We cannot aggregate all the bailouts in the Swamp, price discovery stops.  We have a name for this process, a non optimum governing zone, the Swamp.