“Inflation is back,” reports The Wall Street Journal.

But it’s complicated, says the paper, because today’s inflation is “coming at a time of sharply reduced interest rates in the US, the opposite of the usual response to rising inflaton.”

Consumer prices in the U.S., Europe and other rich countries are projected to rise 2.6% this year, the highest inflation rate since 1995, the International Monetary Fund said Wednesday. In the U.S., consumer prices in February were 4% above year-ago levels. The 15 countries that share the euro currently see inflation of 3.5%, a decade high and well above the European Central Bank’s preferred range. Even Japan, long plagued by flat or falling prices, is seeing modest inflation.

“We are freakin doomed!” says a perplexed Mogambo Guru, who reckons we’re all perched on an economic fautl line of mammoth propotions.

“The Fed deliberately created so much money and credit, for so long, totally distorting the economy of the United States and the world into a grotesque, twisted, cancerous monstrosity so that the entire financial system is choking to death on the poison of un-payable debt loads, and now this same Federal Reserve is going to get MORE powers to create MORE weird distortions and more inflation in the money supply and more inflation in consumer prices like food?”