>Bottom line is: look for stagflation (of magnitude still unknown, but with
>definite potential to exceed the 1970's) rather than real deflation, in the
>dollar-denominated world.
Why's that? The politics of inflation and deflation are completely different. The inflation of the 1970s was a symptom of an unresolved class conflict, with workers acting insolent and the Third World in rebellion. That led to the right-wing turn, meaning the breaking of the working class and the suppression of Third World upstarts. Deflation is the sickness of that victory.
Doug