Whereas China is threatened by inflation, the US faces the risk of deflation.

Almost all developed economies have left recession far behind, and the danger of deflation has disappeared.

Influenced by a misreading of the Japanese experience, this led to excessive protection against the tail risk of deflation.

But that is a phantom risk, because it is the risk of deflation, not inflation, that haunts the PIIGS.

The Fed s goal may be to stimulate domestic activity in the US and to reduce the risk of deflation.

In the late 1990 s, both economies were growing (rapidly in the Spanish case), whereas now they face hard times and a mounting risk of deflation.

The Deflation Bogeyman

Deflation and Democracy

Deflation Doldrums?

Inflation or Deflation?

The Second Great Contraction

The experience of deflation is well entrenched.

Can China Avoid Deflation?

The Great Contraction of 2008 2009

Can China Beat Deflation?

The most important component of Abenomics this year has been the BOJ s efforts to ease monetary conditions further, despite zero interest rates, and thus end the threat of deflation.

Why Deflation is Good News for Europe

Deflation in many advanced economies.

Deflation, on the other hand, increases debt, and feels like being smothered by a lead blanket.

If prices fall at a rate of 1 , could they fall at a rate of 10 ?

Deflation that emanates from the financial sector is lethal.

Deflation discourages optimism about the future.

Has Global Stag Deflation Arrived?

This contraction has become even more severe since then.

Fiscal contraction is contractionary, period.

Indeed, left completely to their own dynamics, these economies would probably shed excessive debt and alter long standing social contracts in a manner that is both highly disorderly and that leads to economic contraction and a higher risk of another financial crisis.

The downturn caused the deficits, not the other way around.

Menace

The US Federal Reserve has had to carry out a difficult balancing act with no sign of inflation on the horizon and at least some risk of deflation it has maintained low interest rates even as credit conditions have eased.

The threat of biological terrorism differs from that of nuclear terrorism.

Finally, employment continues to contract rapidly.

Some countries, like Angola, are contracting.

There was no persistent tendency to deflation.

Islam is dangerous.

The Bonus Risk

Danger. Cafetal Neighbor

Japan provides good lessons about where the true risks are, as it has been suffering from deflation or near deflation for 14 years.

It also invested billions in a wall, whose cost is far higher than originally planned, after confiscating large portions of Palestinian territory.10

On one side is concern about another downturn and deflation. On the other side is the risk of excessive debt, currency instability, and where unemployment is structural doubts about the benefits of additional stimulus.

It's dangerous!

Sami is a danger to the society.

Africa at Risk

Asia Exposed

The Risk of European Centralization

Systems at Risk