A sure sign that something is either on the way if not already happening is denial by a central banker of the risks. With that idea in place, this headline speaks for itself: ECB’s Trichet says austerity plans don’t risk stagnation “As regards the economy, the idea that austerity measures could trigger stagnation is incorrect,” Trichet said, according to an English-language transcript published on the ECB’s Internet site. “I firmly believe that in the current circumstances, …

Original post:
Trichet Says Deflation Will Not Materialize, Austerity Will Not Cause Stagnation; Trichet Plays Politics; Welcome Back Deflation