One of the reasons why there's little inflation (except for food) is because the Fed gave the banks

the dough at cheap money to replace all the worthless toxic garbage which the banks placed on

their balance sheets so that they wouldn't close their doors and go under.

However, that money never cycled into the economy. It's sitting on bank balance sheets.

Goldbugs (me included) got it wrong. We were expecting rampant inflation. It never happened.

What we got instead was a deflationary environment. All that printed fiat is not working its way

back into the economy like we expected it to.

Another reason why we have deflation are the following:

Record global government debt ($52T+)

Record USA government debt ($18T+)

Government deleveraging yet to begin

Aging societies (USA, Europe, Japan)

The debt and the demographics produce deflation. So all those arguing for interest rates to

normalize (go back to where they were) may be just as wrong as the goldbugs were.