I think both sides of the argument have validity. The problem as Rickards correctly states is velocity hasn't picked up enough to cause BIG inflation yet. This is true, but also the sheer magnitude of the money printing they've done is enough to "dilute" the money supply, that's also inflationary. I read where just last year they created 25% of all the dollars ever created. That's a huge number. They're well on their way to do the same thing this year!
The other side of the coin is this. Price inflation isn't just created by money debasement, but also from product availability. If there are shortages of anything that also causes price inflation from the supply side.
If there's a drought this Spring and we see a bad corn crop this year that of course will cause food and gas prices to rise. Corn used for food/ethanol used in gas. Crude is already in the $53/barrel range right now and steadily moving up.
Deflation has been present because of all the crashes the economies continue to have because of Fed manipulation. Inflation will return in spades IF the Banksters can keep the economy from crashing again.
That's very hard to do the way they operate. It's either boom or bust.
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