No we're not, US inflation was relatively unchanged in Oct, so we definately not 'IN A DEFLATIONARY SPIRAL'. You would expect inflation to moderate however in a recession, but what effects the governments' interventions and attempts at reinflation, we don't know yet. Only god knows atm.
Sungar
Inflation figures take into account such things as petrol, fruit, bread, milk etc.
They do not take into consideration such things as shares, property valuations and derivative markets.
Not saying that deflation is true, just that I can see the point of the argument.
The amount of wealth in our society has definitely gone down, but prices (at the moment) have not.
Money supply is going up rapidly, but nowhere near as fast as asset prices have been going down.
