Unregistered

Basic logic would tell us that when the FED injects $ into the economy, the supply of dollars goes up and the dollar sells off and inflation follows. I have to pause to think about this and would like others' opinoins.
I for one believe we are in a deflationary bust and inflation is not going to follow. The fed has LOTS of room to move if inflation creeps in. Also, the dollars are not being released to the economy but instead are being abosorbed by the thristy balance sheets of lenders. To me, it's a recapitalization, not a flood of money. But still, there are more dollars. Do we sell off here? Or is it already priced in?
-Adam