Inflation or Deflation? That flipflops every month or so. Lately, the Deflationists seem to be gaining momentum.
It's a headscratcher, that's for sure. I've read hundreds of articles espousing each side and both seem to have legitimate points to make. It depends what you emphasize. The inflationistas look at the bailouts and the stimulus programs and the fact that we haven't had deplation since the 1930's. The government simply won't permit it. The deflationists say "Banks aren't lending, Companies aren't hiring, and Consumers can't take on more debt."
I would say it could go either way which is why I made my point about Pepboys. It provides some protection either way.