Inflation’s a long way off. Unemployment creeping towards 10% in CA, and that’s closer to 15% if you think the U-6 is more accurate. The derivatives market is a house of cards as well. This means there’s far less US$ to go around than previouly thought. That’s deflation. Dont look now, but the US$ is gaining strenght against about every other asset on the planet. This will continue until unemployment gets down to about 7%. And even then, it may drag on for quite a while as stagnation.