John At The Center

A year from now, will we be talking about galloping inflation or a plunge into deflation? I think the odds favor deflation, or at least lower inflation. Housing is in free-fall, and with the European economy weakening, we are looking at the prospect of sharply slowing global growth. The economists at Deutsche Bank regard this as one real possibility:

http://www.businessweek.com/the_thread/economicsunbound/archives/2008/07/deflation_now.html?campaign_id=rss_blog_economicsunbound