Update

Of course in a system in which the government can create money at will, deflation should theoretically be an easy problem to solve; central banks can, in Chairman Bernanke’s famous image, simply drop money from helicopters.

That, of course, is a bit like saying that anyone can rid their house of termites, as long as they have enough gasoline and matches; it will work but there may be considerable collateral damage.

...This is how we reconcile a world with U.S. 10-year bond yields below 3.0 percent and gold at $1244 per ounce. Many sensible people believe very much in the threat of deflation and a substantial minority think that contains within it the seeds of an inflation to come.
-Inflation or Deflation