>> this is the kind of spending that is virtually guaranteed to increase consumer price inflation

Why would this kind of spending increase CPI more than other kinds of bailout spending, and what kind of spending might it be?

I guess TARP, QE, corporate bonds, etc., are buying things that consumers don't directly buy very much, so those programs didn't apparently cause lots of inflation of CPI indexed things.

So what would this be buying instead? Could the fed buy things like municiple bonds, or maybe other debts assumed at the state level to provide liquidity and keep interest rates/ratings under control?

I don't see consumers caring as much about the price of municiple bonds, for example, as food or houses or cars.

I am a rank initiate in this area, so if I'm missing something I'd like to know more.