[TwelveOfTwenty]

Inflation hasn't kicked in because the economy hasn't recovered, as in being able to sustain itself without 85 billion from the FED every month. Unemployment is still high, and with under employment is even higher, and that amounts to fewer bucks that providers are competing for.

If the economy does recover for real, then we'll see.

[Arlis]

Exactly.

We are in an unusual time where there are strong inflationary pressures and strong deflationary pressures and they are holding each other in check. I’m no economist, but even one of the best, John Mauldin, says economics IS NOT A SCIENCE, and is at best an educated guess - that is often wrong.

Read: This Time it is Different. Because in many ways, it is not.

There is no real basis for the level of the equities market other than a false belief in recovery that is non-existent and built on false hope from infinite QEasing - proven by the fact when the slightest hint of that QE easing coming to an end causes the market to gasp.

False hope.

And the deflationary pressures are so strong (metals, commodities, natural gas) that inflation may never show up and the highly feared D may occur when it is realized that the economy is indeed still bust.

Watch the markets collapse then.

[Hoodat]

Inflation hasn't kicked in because the economy hasn't recovered, as in being able to sustain itself without 85 billion from the FED every month. Unemployment is still high, and with under employment is even higher, and that amounts to fewer bucks that providers are competing for.

Correctamundo. The ONLY cure for inflation is unemployment. And right now, we are experiencing high unemployment, while at the same time increasing food and gasoline prices. I hate to think how ugly it is going to get once unemployment falls below 5% (if it ever does).

The bottom line right now is that inflation and unemployment are both higher than our government is reporting. They have been caught lying to us about everything else, so why then do people trust these numbers.