kewp, I think it would be more accurate to say, the inflation through credit creation has already occurred. What is happening right this instant is that the FED is sucking liquidity away from the big banks who were just hoarding it or buying stocks with it, to get it to smaller institutions via the TAF. All of this is being done to slow the deflation that is occurring through correspondent credit contraction. Why we are finally seeing prices rise, what most people think of as inflation, is that all of that exported inflation to you-know-where is starting to come home to roost.
Which do you think will kill the economy first, re-imported inflation, or credit contraction deflation? My votes on the second.
