"I do not know where you live. I would guess USA. Why? because almost everything in The States is going down...kind of deflation... Here in Canada, we do not have the same feeling -I know I don't. Except gasoline price, everything else is the same or up -ie.groceries... In France -and Germany-, real estate is down a little bit -nothing to compare with the decline in The States or England !!- and everything else is up; gasoline, basic foods...Believe me they do not talk about deflation. I am not an expert but what I can see is the fact that if the US dollar was not going up so much so fast ---and I do not remember any "deflationists" talking about why the US dollar should go up so much -currencies traders were talking about the need for the US dollar to correct a little bit up before going down again base on fundamentals.--- the commodities will not be down SO MUCH. This is again a US engineered problem that went wrong. AND, by the way, US inflation, "officila numbers" did not show the need for prices not only to decrease but crashed. GWTW"

gwtw,

good points to bring up. i'll be cognizant of canadian inflation moving forward.

one thing i will say is that if it is deflation, give it some time. these things don't happen overnight. you can imagine a situation where less money = less going out = less demand for food = (sexier american women) = lower food costs.

for the record, i'm not saying we're going to have deflation. i'm saying some deflationists have been deadly accurate in calling for this unwinding of gold and gold shares. furthermore, some of those deflationists are only temporary deflationists. (some are permanent) but most are saying when its all said and done, gold would reassert itself as the dominant store of wealth. whether that's at a higher or lower dollar price, i don't know. one assumes a higher price but its not inconceivable to have it happen at a lower price.

as for who was calling for a much stronger dollar? there were many actually. off the top of my head : marc faber, paul van eden, bob hoye, mike shedlock.