I think you are SPOT ON in the projection that  the market is telling us  that what we face is a deflationary scenario.  The risk is for a DEFLATIONARY recession or at worse a DEPRESSION.  The nations of the world will try to reflate by printing massive amounts of paper.  Currencies are to be avoided and GOLD will be the store house of value.  Bill Gross yesterday on CNBC was talking about the 30 year treasury being attractive.  Isn't that an outlook for deflation?  However, my thought is that it will be two or three years down the line before that takes place, as the STIMULUS fails to turn things around.

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