From dshort.com
By Lance Roberts
''The "dragon of deflation" today strikes fear in the hearts of both Fed official and economist alike while the townspeople struggle with its ramifications. Deflation, as an economic pressure, is very dangerous, and once entrenched is difficult to break. For the Fed the fear of inflation is far less worrisome than the concerns of a severe deflationary bout in the economy. This is why the current Administration has continued to feed the dragon with no apparent success in appeasing its voracious appetite.
However, even as I write this, I can hear the screams from the masses that hyperinflation is all but around the corner due to the deficits, a fiat currency and expanding debt levels. It is likely that the inflation will show up in the future, and it could be a far stronger pace of inflation than we are currently imagining. But for today, and most likely over the next few years, that is likely not to be the case.''
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