Exactly, they can see that the policies of the US and Europe will lead to lost decades like it has in Japan. You can see it already happening. I believe the pro

Exactly, they can see that the policies of the US and Europe will lead to lost decades like it has in Japan. You can see it already happening. I believe the problem is the bail outs from the financial crisis and the ongoing belief that nothing can be allowed to fail which is why interest rates have been kept so low. I think they would be much better off raising rates (Fed and ECB simultaneously) - this will lead to some short term pain as businesses that arent very profitable are forced to close. But from the ashes of these 'bad' businesses you will get better ones rising. The metaphor here is of fire which destorys but also clears the way for regrowth.