This week is loaded with very important reports for the market, and judging by how things are looking, it could be a good time to grab some aspirin.

G20 largely a non-event…  Pound moves up…  Brazil falls on sell off of emerging markets…  Japan enters recession… And Now… Today’s Pfennig!

“Deflation now, inflation later” is how Bill Bonner sees this crisis evolving. For now, US dollars protect you from falling asset values. But don’t get too attached: when the inflation bubble begins, the greenback will be tossed aside, and gold will fly.

There is no longer any doubt that we are heading for a deep, deflationary recession. But James Howard Kunstler is more worried about the “tidal wave” of monetary inflation that will follow. With the financial landscape washed clean, the economy will need to be rebuilt on productive enterprise.

In the currency market, the dollar moved higher against the euro. Late Thursday, the euro was trading at $1.3463 vs. $1.349 on Wednesday. “We expect euro/dollar to test a fresh one and a half-year low under $1.3200 and onto $1.3170 before month end,” predicted Ashraf Laidi, of CMC Markets US.

Good day…These dramatic swings in the markets are becoming so common place that a move of 400 pts by the Dow doesn’t really garner much notice. After all, in the past five days, the Dow Jones average has had a trading range of almost 2,000 points, but after five dramatic days the stock market is trading almost exactly where it was a week ago.

Consumer prices held steady as the credit crisis took a toll on the sluggish U.S. economy and dampened inflation. The Labor Department announced yesterday (Thursday) that the Consumer Price Index (CPI) was unchanged in September after declining 0.1% in the prior month.

Market volatility has investors flooding into Treasury bonds. This has pushed yields down and created a once-in-a-lifetime opportunity in muni bonds, according to Oxford Club’s Alexander Green.

Here’s a possible gold play.

The spread between gold miners and gold bullion has widened considerably since the beginning of the credit crisis in August last year.

Eric Roseman says this only happens in extreme market circumstances.

He expects gold stocks to double over the next one to three years because colossal global government bailouts will back fears over inflation.

There is no way to sugar coat it or paint a rosy picture. This week could be disastrous for the market. Coming off eight straight down trading days, and the largest weekly percentage drop in the history of the Dow, the economic calendar provides no relief.