You've seen sneaky inflation, now what about sneaky deflation?

Inflation as generic and expected causes a weakness in the currency, causing retail prices of everything to rise.

=Less bang for the buck

But inflation as realistic and experienced (unexpected and unnoticed by many) is lower quality of products, and prices remain the same, while the 'value' of the dollar appears to remain the same or even escalate as we've seen. Another good example I've seen is a smaller bottle of water replacing a bigger bottle of water, yet the price remains the same.

Look at vehicle quality(toyota, recalls and failed recalls), look at hiring, look at all the trimming and cost cutting going on everywhere.

I don't have any idea of what is REALLY going on, but I try to make sense of what I see & hear.

http://www.rickackerman.com/2010/06/uk-deflation/

read this story on deflation, which is the route Britain is beginning to take.

Since every action has an equal and opposite reaction, I believe our sneaky inflation will result in a deflation... but will it be sneaky or will it be blunt>

The question I want to ask is what would happen in a sneaky deflation?

products are already crappy, selection is limited, and production is scaling back. Manufactures unable to move their product are pushing it off on wholesalers and discount retailers.

The dollar has a lot of room to fall and is towering over other currencies...

(which brings me back in time to this funny video from Hoofy & Boo.) The dollar is up, and many expect it to slump (and give some cushioning to declining stock prices)

For any wise person who stumbles upon this, please help me figure out what to prepare for. What has history taught us in this situation?