wethereyet?

The Deal's Getting Done, But Will It Work?

I wonder if David Merkel, whose opinion I respect, would tell me if he sees inflation as less of a threat here than deflation. I get a sense from the article that he does. If it remains the big fear then I hoard cash and keep my debt low, figuring cash will be king soon enough... Commodity prices will fall, and so gold would be something to stay away from, etc.
But at least until the government makes the hoped-for profit on this deal, isn't it massively inflationary? You are diluting the currency by a huge amount, correct? So my strategy for this would be opposite of what I just said, get out of dollars, probably into gold, etc.
I thought I knew what the enemy was a couple of months ago: deflation, and I was investing accordingly. Now I'm confused-- we seem to have hugely opposing forces at work here and I really don't know what to plan against-- a slowdown, or hyperinflation??