Housing market borrowing is down lower than the QE going into them = deflation = banks building cash for their balance sheet that they can't find credit worthy people that want to borrow. The QE going into treasuries is quickly spent on living expenses along with a lot of our tax money = deflation because the money is "used up" with nothing in the way of wealth to show for it, in fact welfare hurts a nation when overdone because it takes cheap labor out of the market, anyway money is destroyed which = deflation. Value is being destroyed faster than QE can replace it, this becomes true anytime credit worthy people will not borrow and loaning to people not credit worthy destroys valve even faster - - -- This is the credit trap, FED has reached the point it has lost its control over the value of money, old term, they are pushing on a string, not pulling the economy along with low interest rates.. Deflation = dollar up, but deflation can = PMs up as well if they start taxing wealth in the form of negative interest rate on bank balances per the Sinclair post. Those with the Gold make the rules! Maybe the PMs won't be taxed, hard to tax hidden wealth anyway. People are buying investment grade diamonds again as well. Grin, they travel well!