An economics major we know says that Obamacare insurance mandates will further the deflationary effect. Taxes are deflationary, and the higher health insurance premiums suck up money without producing value. Thus, more deflationary pressure.
At first glance I thot that was crazy --I mean, taxes raise prices & that's inflation --and sometimes it is, but these days the taxes are making folks not buy and it's depressing the economy. These days the broadest measure of the money supply is at an all time high, but the money velocity is dead and that's why there's no inflation.
OK, so the fed can issue money and buy back T-bills from the public, but until people actually use that money we're not going anywhere.