The party was had, the hangover must be endured. Bad investments were made, they must be liquidated and written off, and these are deflationary. True inflatio

The party was had, the hangover must be endured. Bad investments were made, they must be liquidated and written off, and these are deflationary. True inflation (not the manipulated government statistics) is really a measure of the market. To say that inflation is at the wrong value is to say the market is wrong. The Fed has been striking matches for a while now trying to get inflation to catch on and stand by with the wet blankets when it starts to get out of control. The banks are stuffed full of cash but don't want to lend. If they throw any more fuel onto the fire it might catch and spread faster than they can deal with. Then it's the 1970's all over again and your lifetime savings are decimated in the space of a few years. People believe that more inflation is needed, then you believe the market is wrong and more intervention by central powers is right. It's ok to believe that, but I'll never agree. High inflation punishes the savers, lenders and investors, and rewards the speculators and borrowers. I'll admit, my investment strategy is biased towards a breakout of inflation. But that's because I believe the central banks are so wedded to the idea they won't let it go, not because I agree with them. You can't double the money supply in under 2 years without a flow-on effect, even if it's not immediate.