Is anyone talking about inflation rearing it's head again?

I'm just wondering out loud here - is anyone else is seeing the possibility for inflationary times ahead. Imagine this:

1. increased deficit spending,
   
2. means more treasuries being sold, particularly to overseas investors looking for a safe haven,
3. when their economies start to turn around they pull their investments out of the the US to invest in their own countries
4. creating a wave of selling treasuries
5. pushing prices down and interest rates up
6. the ripple effect of rising interest rates means increased cost of money for businesses,
7. thus putting new pressure on the business sector to raise prices to cover the cost of higher interest rates,
8. and again raising the possibility of another, albeit shorter recession after the economy does a "dead-cat bounce".

Just wondering if anyone else is connecting the dots like this. And what do you invest in during inflationary times? - Gold and land according to friends of mine.