Well, it may be" bleedin obvious" to all goldbugs, but unfortunately not to me.
Yes folks, we are having massive deflation with prices falling every day, but a deflation that we cannot see because as soon as they fall they bounce back due to the massive contra-action caused by the inflationary forces unleashed by QE.
As you suspect, this is the result of the 2nd law of gravitational economics, a branch of goldbug economics.
If you pay close attention to the post I am sure that you will find some more interesting and revealing material about the economic thought emanating from this school.
For those that don't know. There is no inflation because under a liquidity trap bonds and cash become interchangeable meaning that both are used as a store of value.
Excellent reading (post) available here:
http://krugman.blogs.nytimes.com/20...-a-liquidity-trap/?_php=true&_type=blogs&_r=0