I posted a question with the subject line, "Is the Fed inflating or not?" to a Listserv of professional economists. After about 30 replies, I still don't know what the answer is.
Here is a plausible argument stating that in today's environment, Treasuries are actually safer investments than "cash" at the bank. (HT2 Pepe.) Soon the nominal yield on short-term Treasuries may be negative; institutions might actually give the government $1000 in cash today, in exchange for a promise of $995 (say) in three months. Why? Because if they keep it in the bank earning a better zero rate of interest, they could lose it when the bank collapses.
Man oh man.