adrian douglas tells us that inflation is inevitable, and last year's deflationary scare was contrived by the government:

In the monetary system we have had since 1971 the US dollar is backed by

nothing. However, there was a fascinating observation to be made from the credit

crisis of 2008. When banks failed customers lined up for hours to retrieve their

“money”. They were given cash in some cases but most often they were given a

cashier’s check which is regarded by most people as the equivalent of cash! This

is quite astonishing crowd behavior! It means that “currency” is the electronic

dollars that are wired from bank to bank, or spent on debit or credit cards or by

check while the “money” that is on deposit for which the electronic currency

serves as a substitute is a hard copy paper voucher! In other words electronic

dollars are backed by and redeemable in paper dollars, just as paper dollars

were backed and redeemable in gold under the gold standard. Try not to laugh

but that is exactly what can be observed!

This is why the Gold Cartel, acting under orders of the US Government,

hammered down the price of gold and silver with massive short selling in July

2008. It was imperative that paper money was viewed as the ultimate safe

haven. People who withdrew dollars from the bank kept it at home. The Federal

Reserve and the Government made sure that all comers got their cashiers check

or paper dollars. So nobody lost any money from bank failures! Now every Friday

one or two banks fail (73 have failed in 2009 at the time of writing!) and the

people shrug and consider it totally irrelevant to their daily lives.

The money supply growth by the Federal Reserve has declined but has not come

close to becoming negative. But in 2008 assets were liquidated on a massive

scale and as a result dollars were withdrawn from circulation by paying off debt

or hoarding.

This caused a temporary deflationary effect on prices of commodities, houses

and financial assets and on discretionary consumer items. Borrowing by the

public has nose dived but the Government has elected to borrow instead of the

general public and is spending on a multi-trillion dollar scale, putting dollars back

into circulation. As this circulation gathers pace price inflation will be the result,

which is already becoming evident in the price of commodities, food items, health

care, and the stock market. The massive contraction in economic activity and

resulting GDP means there are far fewer goods and services on offer which will

further amplify inflation. As the US dollar loses its purchasing power hoarded

dollars will be sucked back into circulation and fuel even more inflation.

The spending by the Government is not productive and does not invest in

activities that will be self sustaining and that can generate future revenues in the

absence of government stimulus spending. For this reason, the Government

spending will become more addictive than heroine and the end result will

inevitably be hyperinflation.

http://www.marketforceanalysis.com/index_assets/The%20Y2K%20plus%208%20Deflation%20Hoax.pdf