Feds to the Rescue - What About Inflation?

As the market continues to take a nose dive, the government is working as fast as they can to start injecting portions of the $700 billion into the failing banking system with hopes to unfreeze credit. But while all the pundits, economists, politicians, and experts scream "PUMP IN MORE MONEY!", has anyone stopped for even one minute to think about the possibility of inflation?

I read a silly response to a Yahoo Financial news story the other day. Someone posted that the solution to this problem is that the government should bail out the people, not Wall Street. This poster went on to suggest that the government should give all people somewhere around $400,000 each, which would solve the credit crunch immediately and give everyone enough money to pump into the stagnant system. I can't tell you how many people I see suggesting the same. So the question is, what would happen if the government would do such a thing?

Prices would go sky-high, that's what. If everyone had money to burn, there would be a mad rush on every shopping mall and car lot in the country. With the immediate spike in demand, prices would shoot up like rockets.

So what makes everyone think that printing $700 billion in fiat money is going to solve this crisis without consequences? The more money pumped into the system, the lower the value of our currency will be. It's a direct trade-off. Either we need to start calling our congressmen to stop them from this deep spending spree, or get ready for a massive rise in prices.