Deflation vs inflation

So we'r in a deflationary spiral? or is it inflation. The CPI shows no inflation ( or very low ).
Everyone seems to agree we are in a deflationary period now but Gold's up and the Dollar just fell off a cliff against the Euro. the Gold bulls say just wait , in some time we are going to have HYPER-inflation and gold will see new all time highs. Many of them expect Gold at 1200-1300 . When? some say soon , some say once we'r out of this deflation .
But Oil clearly shows that its deflation and so do the commodities. Or is it that Oil is being pushed down by the same guys who pushed it up at 147.
Whatever the case , maybe load up your vehicles now while oil is at 36. The risk/reward ratio for going Long oil is great ( meaning buying oil ). Many talk of oil b/w $25 and 30. Others say its going to bounce from here. I am eyeing the USO to trade it on the long side. I will probably buy USO calls for Feb 09.
Its sure feels good to fill up my car and pay aroud $1.6 per gallon. It might be lower again now .
One can also look at the DIG , Proshares Ultra Oil and gas which moves 2X the move in crude oil.
Similarly there is DUG which is proshares UltraSHORT oil and gas and moves 2 times the opposite side of Crude oil.
But I try to stay away. One would think DUG is at its all time high with Oil so low, but its not . It was almost 80 some time ago when oil started fallig, go figure. Many veteran trades say when in doubt try to stay out.
So I will try to trade USO, but I do not want to buy it and watch as oil keeps falling at 30 or lower. So wait and watch is the key.