Agreed.
When you survey the World, you can clearly see that virtually every major economy is fighting DEFLATION !!!!
They are fighting this with the ONLY tool they have which is with INFLATION by printing money.
The "Race to the Bottom" is still in play but it's not working.
There are two types of "Inflation", one is from excessive economic growth and the other from excessive amounts of money.
There's only one type of "DEFLATION" and it's a bitch. It's a cycle of less that when it takes hold is a negative feedback loop.
No amount of money, regardless of what Keynes says, can fix this. The only thing the FED can do is try and buy sometime.
Inflation does NOT consist in expansion of any sort except to Keynesians who equate inflation with exapnsion, dealing as they do with what they assume to be a zero sum economy.Inflation can be described two ways, absolute increase of the money supply and relative increase of the money supply which is increase of the money supply at a greater rate than the increase of goods and services. If the money supply increases at precisely the same rate as an increase in goods and services then the price level does not rise but there is absolute inflation becausethe money supply increased. there is no relative inflation, however because prices stay level.We are and Europe is currently ingaged in massive inflation. Most of that money has been soaked up by the stock market which continues to rise. The stock market is a marketplace of goods and services i.e. shares and the buying and selling thereof. When stock prices rise all other prices do not rise or rise much less or could even fall if the stock market is soaking up more money than is accounted for by the increase in the money supply.