This is why I keep saying QE 3 is a go.

The American Housing market is the largest wealth creator in the world, and it's flat on it's back. Banks are not making enough new loans to keep enough liquidity in the system to repay the old loans plus interest.

Thus the forces on the market are deflationary, the Fed must Monetize the short fall in the monetary base.

Quantitative Easing, the total Quantity of money in the system is too low, pressure are deflationary.

Debts do not deflate with prices and wages.
We are already seeing a fall in Global Commodity prices:

In May 2012 the prices continued their fall with energy plummeting by 7.6% and the non-energy falling by 2.5%. Food prices declined by 2.1%, beverages up by 1.3%, raw materials dropped by 1.9%, metals down by 4.7% and on balance, fertilizers appeared unchanged.

..And unemployment ticking back up in the US. Both these along with slowing world GDP are heavy indicators of deflationary pressures across all key economic markets.

QE 4/5/6 Anyone?