| | As long as we remember that inflation does not mean "rising prices", but rather "an increase in the supply of base money relative to the value of goods and services in the marketplace", then with the Fed's and Treasury's combined flood of liquidity to the banking system, we already have massive inflation well into the double digits. The banks are holding it now, though. The rising prices will come when the banks and the public decide that the economy is improving and the new, artificially-created liquidity (freshly-printed paper money or the electronic equivalent thereof) begins to hit the streets. At that point, we'll see prices spike like never before.
I don't know that this will happen within one year, but unless our political honchos do some serious curtailing, it will definitely happen. It always does. The Fed creates a massive bubble of money in a certain sector (tech in the '90s, housing in the '00s), causing that sector to be overvalued. When the bubble bursts, they do everything they can to fight the necessary market correct - the "recession", or period of time when resources such as labor realign themselves to more productive uses - thereby adding more false value (funny money) to the market and creating another bubble. The cycle won't stop as long as paper and the "good faith and credit of the United States Government" are all we have to stand on.
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