Which is it- Inflation or Deflation?

Kitco - Commentaries - Gold Pressures Re-pricing Of Assets: "Are we experiencing an abnormal increase in available currency and credit beyond the proportion of available goods, resulting in a sharp and continuing rise in price levels? Or, in the alternative, do we experience a reduction in general price levels brought on by a decrease in the amount of money in circulation or by a decrease in the total volume of spending? In Trader Tracks we explore this issue."