Peak of Erudition

The US economy is running on a huge deficit of over 1.4 trillion dollars, and the country is already seeing reduced interest for it’s treasury papers from the global investors like China, Japan and OPEC countries. And once the interest tightening is forced on US, then it would not be possible for it to continue printing new currency notes.
Also the high unemployment is expected to pull down lot of demand for consumer items in the next few quarters. And whatever marginal rise we are seeing in housing sector is only due to the 10% stimulus scheme by the government which is already costing the government few billions of dollars. Given the huge deficit the government might not be interested in continuing with the scheme. Even if it continues, the long term demand will continue to be sluggish.
The inflation threat seems to be real, as bigger economies like Japan, China, Australia and India are showing robust growth rates. These countries would be willing to pay premium for most of the industrial raw materials including crude oil and metals. So the US seems to be set for a tough time in the near future.