2009/09/05-3a Big Picture with Jim Puplava & John Loeffler - Part 1 09/05/2009

This is one of the best interviews of Robert Prechter where he argues all his points for deflation. At the core is the balance of credit contraction and monetary expansion, and he mentions that this balance is affected by market, political, and human forces. In all of these he sees inflation not winning out in the short term.
As only counter arguments I see that there is more political money creation coming if prices fall too much, and also a lot of the stimulus money is yet to be spent next year. Everything is also a matter of price level, since once credit and prices fall further, smaller amounts of money creation are needed to tip the equilibrium over into inflation. So will this equilibrium point in terms of commodity, equity, and real estate prices be around the last low, slightly lower, or much lower as Prechter argues?