One thing to keep in mind about all of those dollars being created out of thin air by the Fed: The volume of this new "money" pales in comparison to the amount of wealth that has been destroyed over the past year, particularly since this past summer. There are fewer dollars chasing after more goods, hence we are seeing deflation. Housing, energy, commodities... it's all declining as wealth is evaporating. Things that don't decline in price, like health care and education are heavily supported/subsidized/controlled by various governments. But these too will eventually be hit by deflation. I would make the case that the government also meddles in agriculture, keeping the price of food artificially high.
It's no coincidence that Bernanke, a student of the Great Depression, was brought in. The White House knew what was in store two years down the road. Bernanke will continue to flood the market with liquidity as dollars evaporate in time bombs such as hedge funds.
My bleary-eyed thoughts on an early Tuesday morning. Discuss amongst yourselves.