[laserboy]

I agree with you that easy credit is inflationary, but my view is that we have already experienced massive inflation. Look at the prices of housing, energy, education, and healthcare. Look at the current valuations in the bond and stock markets. We have already have years of easy credit and decades of the greatest expansionary boom of all time (debt driven, of course).

Historically credit bubbles end in deflationary busts. See the US in 1890's, US in 1930's, and Japan in 1990's. The government can lower interest rates all they want, but that will pale in comparison to credit markets drying up and impending banking crisis. When "money" (in our case, credit) is destroyed, that is by definition deflationary. Ask Japan about how planned inflation is working out for them.

That is not to say that the price of imports will go down, by the way. It is quite possible for the m3 money supply to decrease while prices rise for certain goods rise due to external supply and demand.

Bottom line: get your money out of the US pronto. Smart money like Buffett, Soros, Gates are already long gone.