We haven't seen inflation because the money never trickled all the way down to us plebs. Aside from massive corporations on Wall St. The money is sitting in the vaults.
Why is M1 crashing? [the M1 money multiplier basically measures how much the money supply increases for each $1 increase in the monetary base, and it gives an indication of the "velocity" of money, i.e. how quickly money is circulating through the system]
Because the banks continue to build up their excess reserves, instead of lending out money:
If the fed does in fact raise interest rates, the game has been set up for the Banks to profit immensely from their massive cash hoards.
The Risk to financials is the blowup in energy. Im not sure how a wave of defaults in the high yield credit market will affect the creditors yet..