How can we enter any period of prolonged intensification of inflationary forces when global production across all categories has been massively ramped to accomodate economies propped up/accelerated by loose credit? When the credit bubble pops, as is taking place presently, doesn't the artificial demand created by this credit bubble pop as well? And in this scenario, doesn't the global economy respond to the basic law of supply and demand. In other words, as the demand is washed away via the bursting credit bubble, doesn't this cause a period of deflation directly correlated to the destruction of credit/demand? The way I see it, no single country has the power to provoke inflation for any substantial duration of time in a global economic scenario such as the one that is playing out. Is it not true that demand destruction always inevitably leads to deflation, regardless of interventions taken to reverse this trend?