This whole deflation/inflation question is a very intriguing question which is very difficult to get the head around.

I have heard arguments made that big deflation has already been diverted, with the bank bail outs and subsequent quantative easing, most of which has went into the equity markets and because of this, stocks have gotten way overvalued based on their earnings in the real economy, which are generally stagnating, or declining. Eventually (and perhaps the top is already in, but perhaps not), capital will stop flowing into stocks and start going in the opposite direction, and it is reckoned that after this wealth has come out of stocks and fled to government bonds; then as the market loses faith in government bonds, due either to negative interest rates or massive devaluation of the currency behind those bonds, as governments are forced to continually print in order to meet ongoing debt obligations, this wealth will finally flow into commodities. The world of real things. When capital flees from the pen-ultimate safe haven asset (government treasuries) into the ultimate safe haven (or fear) assets (all commodities but especially gold), then interest rates start to rise, and all that freshly created wealth starts getting loaned out into Main Street, and the very beginnings of a new bubble/growth cycle are set into motion, which will propel asset prices to eye watering highs by today's standards, but of course with the value of those USD, GBP, etc, being vastly less than it is even today.