With the massive Government spending is Skyrocketing Inflation Next?

I read that the government has increased the money supply by 76% in the last year. Traditionally, when you increase the money supply it creates inflation because their is more money chasing the same products.

This time I am not sure that will happen because over 1.2 million jobs have been lost this year and the government is seeking huge pay and benefit cuts from the auto industry to save them from going out of business. This can only lead to slower consumer spending which usually causes prices to drop. In addition, our exports and impoorts are both down. Tourism is down. Travel is down.

I am sure that the corporations who have facilities overseas will find ways to keep money out of the the United States to avoid taxes but all in all, I haven't been able to see any way the prices can go up in the short term.

Of course, we all remember how prices shot up when investors switched to the commodity markets and oil instead of stocks. Businesses couldn't add surcharges and fees nor increase prices fast enough to cover their increased raw material costs. And we all know how fast they recinded those when the price of oil fell from $147 a barrel to the present $40+ range, don't we? What you didn't? Maybe, because the famed "The markets will take care of things" principle is another thing that no longer seems valid because of government interventions.

Joe