Bad American economics exposed!
Lax monetary policy indeed does cause inflation (future inflation) except that it is not measured and largely hidden in the present, though the effects are very real for Americans.
Enter those holding US dollars who because they cannot spend them deflate the full value of their foreign assets including exports. The inflation of numbers of US dollars lowers the real value of American goods and is why China holds on to US dollars anticipating a day when the real value of US assets will appreciate. It's somewhat like the monkey in the cookie jar to stupid to let go! But, let go they must and the inflation will be reflected in the massive purchase of US assets, such as real estate and companies making both in unreachable to the average American investor / household.
Yes! The inflation is definitely there waiting to express itself as a visible force and more obvious decision making force.
Incidentally, the debt and massive holdings of currency as a protective hedge are very well described as the Keynesian trap because there is no investment in the economy ..... Consumers are spending beyond their means, government investment is constrained and contracting other than military, private sector investment is very hard to find as companies stock pile profits having cut labour costs to the bone. It's all Economics 100, text book stuff!