Right No Bear. I hear what you're saying. My admittadly simple understanding is that deflation is the automatic consequence of higher unemployment, which results in less spending and lower tax revenue, which causes a reduction in prices. The cycle just continues to spiral from there, basically in the opposite fashion of a bubble. Like I said, it seems like the consensus from the Austrian side of the house is that the current administration will do its best to battle deflation by continueing to spend.

I guess the question I would have is: how does POG continue to improve in a deflationary environment? What's the mechanism, since prices of goods are decreasing, and therefore the purchasing power of money is increasing?

Sorry if this is too off-topic; I'd by happy to continue the discussion via PM.