While I am still anti government interfering with regards central banking I choose strong leadership over reactionary weak central bank governance.
China just reported a record 33 consecutive month of year on year inflation declines. The PBoC has been much more conservative with the prospects of deflation and has not carelessly experimented with excessive monetary base expansion as compared to their counterparts in the west.
What is clear though is China is exporting its deflation to its trading partners and the prospects are extremely high for Europe to enter into recession, for that matter a global recession is very much on the cards.
I am off to check out what Dwaine at Recession Alert has to say about prospects of a US recession.