I expect deflation to become far more obvious in 2010. The unwinding of a debt bubble is always deflationary. The debt bubble now unraveling is the biggest in history and means that deflation is going to be worse than it was in the 1930s. The inflation/deflation cycle runs for about 60 years, so I don’t see any serious inflation until 2035 or so. The one thing that might be different this time is that the U.S. might face commodity price inflation should the dollar collapse, because all commodities are priced in dollars.
---Ian Gordon: Publishes the Long Wave Analyst newsletter. Ref: Private Correspondence to me, 1/10