Cutting fed rates and causing inflation is just same as what Nixon did when he let the dollar to fluctuate against gold. This had hurt Europeans, now it's time for Japan, China and Russia (or orther dollar holders) I think that current situation is just same with the 1970's stagflation era. Despite current weak economy status, all commodity prices are going up day by day. USA is definately heading towards a stagflation era. Which is just the begining of a global monetary system crisis. World needs a new Bretton-Wood conference to set up a new monetary system which is based upon sth but not $ or any other fiat money.