Is this a little correction or deflation?

Kia Ora,

It has being an interesting couple of days. First there is the heads of Britain's economy the Chancellor of the Exchequer & the Head of the Bank of England giving markedly different views on the US reforms. That includes the Head of the Bank of England being quoted as saying the opposite to what he said.

Then US housing sales are down as the stimulus runs out & 'Helicopter Ben' was reconfirmed as head of the Federal Reserve.

Now anyone with a conspiracy theory will be loving that. Just as virtually everything in the world is dropping (apart from Aussie house prices for now) they put back in the person who has vowed to throw money out of helicopters to stop deflation.

Now most are saying it is just a correction in the market & those happen.

But there are others who base their predictions more on history who are seeing this as possibly the beginning of the second part of the deflationary part of the depression. Then in steps Helicopter Ben to print (or quantitive ease) as much money as required to stop the slide.

But once it is in the system how do they stop it from becoming Hyperinflationary?

No one in history has being able to before. Each time man has tried to control this monster he created  it has got the better of him. It seems to be a natural force like gravity.

I wonder who will win this time?