mayhem in october

as we near the end of october - we have seen market panic. Interest rates in Canada for the variable (floating) rates have moved from prime -1% to prime plus 1% and then the bank prime has dropped 3/4 of a percent....but really they have increased by 1.25% thus increasing the bank spreads.
fixed rates have increased by approximately 50 bp....the canadian banking system is in much better shape than many other countries, but we will not escape this mayhem.
the question remains..in the long term will consumer demand drop and cause deflation or will the massive amounts of money from the US treasurey cause inflation....that is the trillion dollar question as there are no more million or billion dollar questions - they are too small.