He's mentioned the velocity of money dropping as well. Its the pushing on a string argument I guess. Bob has made the point that the Fed needs rising asset prices for credit creation to continue (as opposed to Zimbabwe style 1bn notes) . I believe there is something like $30T of assets in the US that would dissapear if everything was mark to market. I assume its this defltionary force that is neutralising the Fed's actions.

Again just be pragmatic about it if you have your investor hat on and $/£ are at stake. If you see "inflation" winning by whatever indicators you are using then vote with your investment account. After side stepping most of the landmines over the last year , my outlook is 6mths max. and I'm sticking with gold investments only as the happy intersection between both viewpoints