Move over Stagflation, Here Comes Stag-deflation

Nouriel Roubini, aka Dr. Doom, is predicting we are set for an extended period of Stag-Deflation, i.e. high unemployment matched with deflation as opposed to inflation which we saw in the 70s.

On a related note here is my co-blogger (on permanent hiatus?) Ilya endorsing deflation. 

Update: I hasten to add that I didn't see a damn thing in the 70s as I wasn't yet even a thought.