Tim Cavanaugh (via Instapundit points out a deflationary trend and a commenter adds:

“So who fears deflation? Debtors fear it. And who is the biggest debtor? The federal government – to an extent never seen before in the history of this country.

The post itself and all the comments (although some of them are mine), are worth reading.

I think that deflation right now is not a serious problem, just a symptom of the uncertainly the Democrats have created by passing huge regulatory bills that call for regulations yet to come and by passing deficits that they intend to use as an excuse for raising taxes next year. These people are the biggest threat to this country right now. They should never be allowed near the levers of power again and that applies as well to good number of Republicans who have become part of the Washington-think crowd and need to be replaced.