i agree with aspects of "the black hole" that has helped to damp down inflation. that is debt disappears off the books during bankruptcies, and there's been quite a few of those.
when houseng and other real values decline, that's a form of deflation, or could be. when grocery prices rise, it could be bacause of increased demand, and the creation of markets for farmers by increasing the issuance of foodstamps to the poor and/or unemployed.
the flow of money, or it's velocity through the system is always important. if money doesn't flow, then those at the far edges of the economy go without.
more to be said is that the current low interest rates makes me recall relative deflation, and not relative inflation. one effect would be the cost of holding precious metals is reduced. when the i rate rises, the cost of holding assets increases.
in the uncharted waters of the post-modern era, the game appears to be on.
