U W Mitch; stainless steel is just what it says: it stains LESS. It is not stain or rust PROOF.
There is nothing wrong with your blade, other than what is normally wrong: the carbon inclusions (which Anne calls 'dirt,' rightly enough, as they are more often slag than pure carbon) which permeate the steel. Latrobe BG-42 steel is a Bearing Grade steel, and is manufactured using the expensive VIM-VAR (Vacuum Induction Melted, Vacuum Arc Remelted) process. This guarantees a very clean, albeit expensive, steel. Even 154-CM steel, which is now made by a argon - oxyen decarburization process is cleaner than ATS-34.
So what if you have carbon inclusions, you say? What is the problem? Well, edgehopper, the problem is this. In the presence of water, carbon will react and form carbonic acid; this will attack the steel. If you have the chloride ion present (such as from the salt in your sweat), the H+ from the carbonic acid will be delighted to meet the Cl- and form hydrochloric acid; further attacking the steel and causing pitting. The chloride ion also facilitates the electric current present in what is now a miniature galvanic cell, and disrupts the formation of a protective oxide coating (for a discussion of this, see):
http://www.corrosionsource.com/discuss2/ubb/Forum4/HTML/000218.html
This concept is put forth clearly here:
http://www.corrosionsource.com/discuss2/ubb/Forum4/HTML/000140.html
The corrosion resistance alloys (CRA) which contain alloying elements like Cr , Ni and Mo are much more resistant to severe corrosion than the ordinary carbon steels . However, stainless steels are of all ferrous alloys, the ones most susceptible to pitting. Stainless steels derive their corrosion resistance properties from the formation of a thin oxide film on the metal surface, and the ability to maintain this passive film. If the film is destroyed at local areas, these areas become anodic and pit. High chlorides concentrations are effective in penetrating the oxide film on the surface of the stainless steels and causing pitting. This problem is aggravated by the presence of carbon dioxide in water. The presence of hydrogen sulphide due to inefficient microbiological control along with the carbon dioxide will increase corrosion and the presence of oxygen along with both of H2S and CO2 traces, and deposits will cause severe corrosion to stainless steels .
Now the above paragraph refers to all stainless steels, but knives of quality are generally made from martensitic stainless; the addition of Ni would obviously make the stainless austinitic, such as the typical 18-8 (18% Cr, 8% Ni) of stainless flatware, so we can't add Ni to improve our knife grade stainless steel. If you don't know about stainless steel types, go here:
http://www.ssina.com/student.html
Please note, however, that one method of increasing corrosion resistance suggested above, the addition of Mo, is not only feasible, but has been done; the main elemental difference between ATS-34 and BG-42 is the 4% Mo in the BG-42; the Mo serves well as a corrosion inhibitor, as well as having other well known favorable effects on the steel. Thus BG-42 is superior in corrosion resistance both from its' lack of carbon inclusions, and the presence of Mo.
One interesting but so far unused (in the knife industry) method of corrosion inhibition is the 'passivation' of stainless steel. This is generally considered to be the removal of any carbon steel from the surface of stainless steel (usually using an acidic solution). This is now a topic of some dispute; you may read of this here:
http://www.finishing.com/faqs/sstpass.html
I read with interest and much appreciation the post of GigOne; I agree with what he had to say, save one item. He said:
There is a third process (alloying method). An example, when chromium or chromium and nickel are alloyed with the iron; this alloy is not only absolutely rustproof but will even resist the action of such corrosive chemicals as hot, concentrated nitric acid.
While I hesitate to disagree with such an obviously experienced and erudite poster, may I respectfully refer him to the general corrosion forum, from which samples have been taken above; he will find there many problems with corrosion of even austenitic stainless steel. Here is the URL:
http://www.corrosionsource.com/cgi-bin/ubbcgi/forumdisplay.cgi?action=topics&forum=General+Corrosion&number=4&DaysPrune=1000&LastLogin=
In short, edgehopper, your stainless steel has behaved exactly as expected in our oxygen rich, moisture laden, C02 ridden and chloride contaminated environment.
Prevention, in the form of an ounce of good rust preventive (Tuf-Cloth for one) is worth a pound of cure. Just remember, it is the same for all of us: 'Corrosion; it's the pits!'
(groans from audience gratefully acknowledged)
Gently replacing my Sebenzas in my humidity controlled, inert gas filled, chloride free, Tuf-Glide spray equipped sock drawer,
I remain,
Sincerely, Walt Welch