The bond bubble has long since burst: investors, ignore this at you peril
The Fed's December minutes reek of fear. The Bernanke team is no longer sure that stimulus will gain traction in time.
The Fed's "Monetary Multiplier" has collapsed, falling below 1. This is unthinkable. We are in a liquidity trap.
So yes, printing money is not as easy as it looks, but to conclude that the Fed cannot bring about inflation is a leap too far.