From WSJ: "There may be something else the Fed (and other central banks, for that matter) are fighting, although they won’t talk about it: deflation. To a central banker, “deflation” is like the Candyman (from the scary movie, not Sammy Davis). Say its name five times in the mirror, and it appears. So they never talk about it, even though they’re well aware of its shadowy existence. They’d much rather talk about inflation, so much so people get that crammed in their heads, start expecting it, and plan against it; it’s called managing expectations.
Doesn’t mean deflation it isn’t there, though.
"I see nothing in this latest and most dangerous round of monetary anarchy that will reverse the process of deflationary debt deleveraging,” Nomura’s noted bear Bob Janjuah wrote in a note this week. “I am deeply worried that what Bernanke is now de facto saying is that the real underlying economic and jobs situation is much worse than we all think.”