Seems like deflation to me, too. Gold and oil coming down against the US$, not just other lame currencies. Yen is the exception.
After a credit bubble of this magnitude pops, it is quite common to have commodities correct downward for some time as the senior currency gains power. But, Unemployment is also rising at a very fast rate. Credit is contracting as well.
I would guess that people with cash and a steady, secure job are going to be in a very powerful economic position in the next year.
