As an adherent of the Austrian School of economics, I can confidently tell you that a sustainable US recovery is not at hand.

An upward blip in the GDP reading (itself a flawed measure of material well-being) must not be mistaken for a sustainable recovery, especially when government borrowing is unprecedentedly high and a lot of the input parameters, not the least of which is the GDP deflator, can be fudged. Imagine if you will a victim at the unfortunate end of a Brock Lesnar knuckle sandwich.

So if one defines deflation as a reduction in the M2 money supply, then we are indeed experiencing deflation.

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We then have the textbook case of more money chasing fewer goods, leading to rampant price escalation. What the driver is referring to is his race car's inability to turn the corner.

If you happen to catch a NASCAR race on TV, you might hear a driver screaming over his radio, "Tight, tight, tight … A "tight" condition means the car doesn't want to turn and is heading straight for the wall.

The blow has knocked him out cold and the medics try to revive him.

The best suggestion they can come up with is to have Lesnar pound the man's head even harder with his fists.

None of the malinvestments have been allowed to be liquidated.

Housing prices have been propped up, banks and auto companies have been bailed out, regulations have been increased, debt covenants have been violated, unemployment insurance has been extended.This is exactly the scenario I envision for the impending price inflation.Bernanke and company are screaming that there is deflation everywhere they look. Since then, every poor economic headline in the lapdog media has been preceded with the word "unexpected," as if the clueless chairman's pronouncements were suddenly the Gospel, and the economy had indeed recovered.Common sense tells us that if phenomenon A causes problem B, then B cannot be rectified unless A is first removed.From this vantage point, one can conclude that the real recession is ahead of us, not behind us.