Deflation on the Way?

I've read some coverage of the finance mess in a few blogs that's something other than the usual handwringing.    The suggestion is that we may be in for a bout with deflation, where cash is king and companies in debt will struggle for a long time. 

Heres a sampling:  

Advice from my VoIP industry colleague Tom Evslin on Deflation (which triggered this review of blogs for me):  

http://blog.tomevslin.com/

History of the Panic of 1873:  

http://chronicle.com/temp/reprint.php?id=477k3d8mh2wmtpc4b6h07p4hy9z83x18

A view from Silicon Valley VCs (Sequoia Capital):

http://gigaom.com/2008/10/08/sequoia-rings-the-alarm-bell-silicon-valley-in-trouble/

A view from a NY VC:  

http://www.avc.com/a_vc/2008/10/what-to-look-fo.html

The net picture emerging here is of a time, which could last for a while, where cash assets are key and debt laden entitities (countries, companies and people) are in trouble.   

In my lifetime, we've never seen a period of deflation.  The blogs and articles above are offering advice on what we should consider doing if that is what ahead.    In short, pay off your debt and have cash available which could be used to buy assets on the cheap.