Deflation is the real threat because the unprecedented level of...

Deflation is the real threat because the unprecedented level of outstanding bad debt can implode faster than central bankers can reflate. Besides, unless people are willing or able to borrow central bankers are merely pushing on a piece of string. This has already been proven in Japan where deflation persists - regardless of the JCBs endless QE and holding interest rates near 0% for many years.

The USD had the biggest weekly rise in over a year against the euro. Stocks, commodities, forex, junk bonds and even gold & silver continue to selloff. As global liquidity flows continue to contract on negative sentiment we should see this trend strengthen (much like it did from mid-2008). While history never repeats - it sure does rhyme.