QE, Government Expenditures and Inflation

A very instructive weekly commentary by Mr John Hussman. His definition of inflation "Inflation basically measures the percentage change in the ratio of two “marginal utilities”: the marginal utility of real goods and services divided by the marginal utility (mostly for portfolio and transactions purposes) of government liabilities" and the examples he gives are worth keeping in mind. The following charts are particularly interesting.
First Monetary base and inflation:

Then Government expenditures and inflation: