There's all this talk about deflation recently. Especially the new PPI numbers that just came out suggested that. But if you look at the consumer level(not the producer price level) it does NOT look like deflation. Housing prices are going up through the roof and the sky. Stamps still high. Even gasoline prices haven't dipped much since after the war(oh big deal. maybe 10-15cents). Food has remained the same prices. So, is the Fed and gov't up to something. Maybe we have inflation, but they can't raise rates because that would kill the ailing economy so they are saying deflation. Harrytrader, what are your thoughts on this? But ,on the hand, maybe this is a preclude to the coming deflation like the ones in Japan. Read the recent FT and its' scary what Japan went through and is still going through. But if we are having deflation then commodity prices should go down, but that's not happening. It has been going up. Commodities funds are having a ball these last years or so. This is a very mixed picture... What are your thoughts ET?