Check out this article on using inflation to finance war .

I just had a thought, could the Fed be talking "fear of deflation" all this time simply to keep all eyes off potential inflation so when the dollar devalues it catches the most people by surprise? After all, if people know inflation is coming they quickly learn to anticipate it and do things to somewhat protect themselves from it. For it to be the most effective it needs to sneak in like a thief in the night.

Could the powers that be be talking deflation all the time so that like the shell game, where a pea is hidden under one of three shells, the shells shuffled,  then you try to guess which shell the pea is under. All the while the sleigh of hand actually makes it so the pea is really under none of the shells, so the target of the scam is certain to loose.

Quite an interesting history of money in the USA in the article linked above. If enough people think something can't happen, it makes it all the easier for the scam to be pulled off. Ok, that is my conspiracy theory for the day.

We may have some deflation in the short term, but inflation is going to be the end game.

John