The problem with listening to mainstay economic blogger “Mike Mish Shedlock” make his deflation argument isn’t that he doesn’t know what he’s talking about — it’s that you don’t. You don’t, that is, unless you know what he means by inflation/deflation. To most of us “Joe six packs” — the kind you drink — inflation means a six pack costs more and deflation means it costs less, we don’t care why. But smart guys speak of it as a monetary event i.e. it’s an increase in the amount of money in the economy...
http://bankimplode.com/blog/2009/06/10/mish-misses-it/