The Oil Drum: Peak Oil, Inflation or Deflation?

I’m very interested in the whole “inflation versus deflation” peak-oil argument. I started thinking it was clear that peak oil would be inflationary, but I’m getting less sure. I don’t understand the deflationist case in enough quantitative detail yet to really assess it, but I’m working on it. Let’s start with the case that the post-peak oil era is likely to be inflationary, which can be summarized fairly simply:
Much more after the jump to The Oil Drum.