Bloomberg News has the story Deflation Is About to Wallop Europe.  In conclusion the author writes:

The ECB has joined this throng of deflation worriers, with some policy makers, including Draghi, becoming apprehensive over prolonged low inflation. The Austrian central bank governor, Ewald Nowotny, who is on the ECB governing council, recently said he is concerned about “the risks of excessively low inflation.” Another governing council member, Bank of Finland Governor Erkki Liikanen, said last month, “If inflation is low for very long, it creates a challenge because deleveraging will be harder. We must be aware of that risk.”

If you are still concerned with U.S. budget deficits and the possibility of inflation, then you are so last decade if not last century.  You are fighting the wrong war. A good old boss in the capitalistic private sector once told me this about misplaced worry about the future. It is good to worry about the long-term future, but if you cannot get through tomorrow, then there is no long-term future.