RE: DeflationEverything that I've read indicates that Greece will default in November-December this year. The EU and ECB are getting ready for this event. They project that Greece needs at least a 50% reduction in their debt and the ECB is ready to backstop the EU banks by readying the printing press. Hopefully this event will at least stabilize the markets. As to whether the world is heading into another recession or maintaining a slow recovery, that question is yet to be answered.