JohnP

Will We See Inflation or Deflation?

Excellent. You pinpoint the key long term issue. You should also note, as is seen clearly in your charts, that bubbles are caused by Fed easing too long, and they burst when the Fed tightens too long.The Fed always overacts, because they can't stand the political pressure when they act and the results of their actions don't show up for 18 months. So they keep acting, and 18 months later, they've overshot. The problem goes back at least to Volker's term.