Deflation in Global Economy

With credit crunch hard hitting the entire world, there is a growing euphoria that this would lead to deflation in Global Economy(positive if it's for short period.)
This has already lead to slashes in crude oil prices.
This has also spawn fears that the fast developing economies (China and India) which expanded their capacities may dump their commodities in Developed nations to keep running the factories and stave off employees.
This would turn out to be positive for these economies unless the developed nations come out of recession before christmas.
If the deflation continues after christmas, the fast developing economies may shed work force, slash wages and more lay offs.
This would also have impact on politics with people turning towards carl marx......

Hope this christmas brings back hope and cheers...
- Nhanna