[quote=FormerSanDiegan]
You missed my point. A x% increase in monetary inflation does not necessarily lead to x% increase in prices. Sometimes markets take that money supply and erase it from the planet. How many billions of dollars have been subtracted from the economy from falling house prices. How many trillions were subtracted from the economy during the dot-com bust.
[/quote]

I already said that. Debt is being defaulted on much faster than new credit is being created. Foreclosures are deflationary. Bankruptcies are deflationary. Unemployment is deflationary.

What new liquidity is left over is flowing to historically safe havens, oil, precious metals, agriculture, etc.

As many Americans are about to find out, its entirely possible to lose your job, your house, declare bankruptcy and still end up paying more for food and gas.