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1. Deflation is largely about a decline in economic growth
2. Current talks of global deflation tend to focus on a rise in emerging market debt and a rejection on the part of investors to inexpensively finance more emerging market debt
3. This makes it hard for emerging market economies to grow
4. In turn, commodities have less demand and commodity prices fall
5. Moreover, capital flees emerging markets and seeks the US dollar and US government debt as safety
6. The US dollar and US Treasury bonds rally in deflation