If the balance sheets of the bailout recipients are bolstered by several Trillion brand new freshly minted dollars and that shores up the recipients, where did the dollars go that left those balance sheets to create the hole in the first place? The planetary economy is a closed system. No money enters or leaves it through commerce with an alien world.
I still contend that these artificial increases in the money supply MUST eventually be inflationary.
As various responses to this and the Shedlock article suggest, it is the velocity of money that we need to enhance, not the volume. Money, like water or electricity, creates no power and does no work unless it is in motion. Investor certainty and government impedance should be the focus.