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I think the reflation has already happened with all of the market bubbles since early 2003 and the real estate bubble.
2007-2008 could see a big recession or worse. The first clue is a big decline in stocks and real estate, along with Gold below $500/oz and other commodities dropping. This will signify less liquidity in the markets (hedge funds will replay the LTCM crisis in 1998) people will become more catious and stop spending, and we could have basically the same situation as in 1990's Japan - deflation.
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