The US is not Japan in fact far from it in regards demograph & population growth. I think it would be very dangerous if they try to keep rates at zero for too long, but they may well do & IMO inflation would be the result. A reasonable proportion of the deflationary effect has been driven by design improvements to offset higher energy prices. Like most enhancements the rate of improvement declines rapidly & I think we are pretty much at that point now. I find it interesting that people say they can't raise rates, obviously because the burden of debt is perceived as too high & perhaps it is. And again here lies the problem if inflation kicks in. Its almost as if the best outcome for the US is continued deflation as it lets them off the hook in regards raising rates & the consequences of higher interest costs.
