Deflation - Rosey Answer
A couple weeks ago I posted that I sent Rosendahl a question about the monetary base expanding. Anyway, he sent me a link as an answer to the question.
I am still at Daring Lake and I will look back closer when I get home in a few days. The expansion of the monetary base did not move me from the deflation camp, but more calmed my fears about an entire collapse of the banking system, try to get your money back when so many banks gave it to people with no capacity to repay it... If there is nothing left no amount of self righteousness will enable banks to give you back your deposits... As near as I can figure the doubling of the monetary base went to putting liquidity back into banks.
This one is a few days old, but from big picture, we are in deflation right now.