Eventually, the destruction of debt will slow, stop, and reverse. If the central banks keep creating money at that point, then we will get inflation. They should, of course, stop creating money at that point, but they may well choose to keep doing so to inflate away their debts, as this article suggests.

In summary, I agree with Dave, deflation first, then inflation. I think that the deflationary destruction of debt has quite a while to run yet, though.

Market calls are pretty useless without this.

“Deflation is the midwife to inflation” they say.

So in the interest of being useful, I say we get another round of deflation in Q1 & Q2 of 2010, pushing everything but the dollar down.

THEN we get inflation. Maybe. Much further out than that I doubt anybody can predict, since governments and central banks will be screwing up the markets as much as they can.

But deflation first. Then inflation.

in chinaworld

all 9.8mh goverments will bust naturally

in 9.8mh global final wave of

financing system collapse this

winter.

through bigbanks union(blackhole)

9.8mh global hyper-stagflation,

all stagnation , total all collapse !!!