[alloysteel]

Deflation?

How is that possible?

With all the extra money being pumped into the economy via QE I, QE II and now soon-to-be-announced, QE III, we shall be AFLOAT in Monopoly money.

Or will the Fed call it all back in, and never allow it into circulation?

Where’s my cheese? Who moved it?

[Publius]

If we were living in a time of prosperity, the money created by the Fed would have set off hyperinflation by now. If we were living in a time of minimal growth, we would see stagflation.

But we're in a depression where no one has pricing power anymore, and that means the money created by pumping is never deployed effectively. That's why we still see deflation. This is why the Fed has no interest in ending the depression but is keeping it going. If it ended, we'd see dollar collapse and hyperinflation.

[Wyatt's Torch]

If the demand for money remains in excess of all the trillions provided then we are still in deflation. Inflation/deflation is always and everywhere a monetary issue.

[ari-freedom]

“With all the extra money being pumped into the economy via QE I, QE II and now soon-to-be-announced, QE III, we shall be AFLOAT in Monopoly money.”

you’d think but Obama’s fiscal policy is worse than anything the fed can do

[JDW11235]

“Deflation?”
-No

“How is that possible?”
-It’s not

“With all the extra money being pumped into the economy via QE I, QE II and now soon-to-be-announced, QE III, we shall be AFLOAT in Monopoly money.”
-Absolutely correct. Real estate is still coming out of it’s ridiculous bubble. Dollars will be printed in an effort to drive up the costs of everything non-credit related (houses, etc.), to make sure you ncan’t afford anything without government assistance, and that people lose their jobs (through regulations, etc.) and cannot afford the falling real estate, which will in turn be snapped up and used as housing projects to ensure more votes for socialism.