these analyst predicting the fall/destruction of the US currency. Mostly fear mongering to sell their newsletters. The following is the best explanation for the development of an inflationary environment I have come across. From, "The Economist", Nov 1-7/08 issue, page 80:

"The sobering lesson is that conventional policy may not prevent a deflationary slump. This lesson has not been lost on policymakers. The nuclear option, conceived in America but untried in Japan, is to finance public spending or tax cuts by printing money. This requires the central bank to go along with the fiscal authorities (which may prove easier in America than in Europe). It would work like this: the government announces a tax rebate and issues bonds to finance it. But instead of selling them to private investors, it lodges them with the central bank in exchange for a deposit. It draws on this account to clear the cheques mailed to the taxpayers. This scheme is essentially the same as the proverbial "helicopter drop" of money, but with neater accounting and a less erratic distribution of cash. It bypasses banks and money markets, and puts money directly into people's pockets."

The Economist's mantra seems to be timeless. "First published in 1843 to take part in"a severe contest between intelligence, which presses forward, and an unworthy, timid ignorance obstructing our progress."

Cheers