I find it hard to get my head around the deflationists argument. How can you not have inflation, initially in assets then eventually in prices, when the Fed and other central banks are printing money in unprecendented quantitites?

Yes it is piling up in the banks right now, but they can't earn a buck and rebuild their balance sheets, letting it sit there, they have to turn a profit which means either lending it out or investing it on their own account. If I was them I'd be borrowing off the Fed at 0.25% and buying high yielding commodity stocks like Canadian trusts paying 12%. Easy money. If they'd lend me some that's what I'd do. Buy some more Tyhee as well...