sure there will be deflation but it might not be as bad as you think though. I am in TIPS not to make money but to preserve wealth, a concept that seems completely foreign to yahoo paper-traders. I really don't care if I lose money on TIPS because I will lose less than keeping my money in commodities look at gold/silver past few days or equities. but looking at the technicals, TIPS wants to go up. With the Euro in shambles, emerging markets taking double digit % hits, I believe there will be many foreign dollars coming back our way.