Ordinarily I would agree with you. However, even with the huge influx of money, inflation has been relatively mild (not the near zero that they keep touting, but not '70's levels either).

Is demographically driven deflation being effectively offset by monetary inflation?

Perhaps a viable strategy for Russia, as they don't have a lot of Dollar denominated debt nor trade. But why would that make sense for China and most of the Middle East? China has way too much Dollar based debt and the Middle East gets far too much money from Dollar based oil. If the Dollar tanks, China tanks. Until oil is based substantially in another currency, the same is true for the Middle East (and Mexico, but for different reasons - a good portion of their economy is propped up by payments in Dollars sent there from immigrants in the US). And I don't see that this could be successful without China and the ME. Europe is having its own currency issues with the breakup of the Euro seemingly imminent.