Does the US fed think the market is stupid or public is stupid. Deflation is not the reality Reality is STAGFLATION: high unemployment AND high inflation AND low growth. staglation is the REALITY.... and the gov't debt is unsustainable... making the USD worthless is worst than any deflation or inflation problem. the gov't wants to print it's way out of debt. and who pays for the debt...from inflation....fix income investors.. corporate bonds and gov't bonds and ipos is what drives the economy..why would anyone want to lend money to the gov't? Greek gov't cannot even get loans.