Hi Beun (I like your Wallace logo): It appears the difference is not so much whether deflation is more dangerous than inflation - they all seem to agree on that.

The difference is that Armstrong believes deflation is inevitable and cannot be stopped and it is therefore stupid to invest in gold, while the others believe Bernanke and the boys will wear out the printing presses to stop deflation, and this is good for gold.

The biggest problem Bernanke has according to Armstrong and the other deflationists is increasing the velocity of capital, which means preventing the hoarding of cash and incentivizing those who hold it to put it back in circulation. This is the sort of economic policy problem one would think Bernanke would be good at solving.

Armstrong and others point out that there have been diminishing returns to the creation of money in the past, meaning the velocity of money has increased less and less as the amount of money created has increased more and more, so the problem is becoming acute. When it gets close to being solved, gold will go up. Ike