Commentary Inflationists are cheering the rise in lending growth as it appears to be a sign of reflation and economic growth as we head into the new year. With the Fed rapidly tapering its balance sheet, a rise in lending growth is providing validation that inflation is here to stay and that perhaps the economy is on the edge of a long-anticipated secular rise in inflation. Despite the increase in lending growth and the new money that’s created from it, it’s still not enough to sustain inflation. New money enters the financial system when a new loan is originated from the commercial banking system. Based on the most recent data from the weekly report on the assets and liabilities of commercial banks in the United States, or H.8 report, loans and leases at all commercial banks are rising at a rate of 3.1 percent from this time last year. Lending …