1) Japan 2) USA Japan fell into a deflationary spiral after its bubble exploded, creating currency devaluation. As evidenced by its markets, Japan never really climbed out of it. A similar thing is happening with the USA, and we are at the cusp of it. The problem is USA doesn't have a good manufacturing base as good as Japan The countries that are most competitive manufacturing wise and who they decide to spend their reserves on will be the country that has its citizens quality of life preserved most. Which country does China spend its money on the most? Germany seems the most attractive, even though its saddled with the rest of the EU. German bonds seem to be the most attractive.