After the US went off gold in 1933 and devalued the dollar, producer price indexes posted a massive jump of something like 25% y-o-y, then averaged something like 7% a year leading up to the 1937-38 downturn, then it tumbled. CPI jumped 6-7% y-oy a little after fdr devalued then it averaged something like 2.5%-3% going to the 37-38 downturn, where it dropped. So much for the 'printing money doesnt work', absent another downturn down the pipe inflation should begin to pickup in 2011 being lead by commodities like in the 30's And we should hear soon from bernanke and the fed how they 'dont care about inflation' if deflation expectations get out of line, of course that's a lie but they will stop making apologies about all this money priting if the core price indexes nosedive in an effort to get people to spend