First we have the global labor supply (China post cold war), then the de-leveraging post housing bubble ... where's inflation?
Large companies are sitting on cash, small companies can't borrow.
Everybody is cautious due to policies coming out of Washington
Conflicting expectations2 Top Economists Differ Sharply on Deflation - NYTimes.com
The broader M3, which the Fed no longer publishes but is estimated by Shadow Government Statistics, is shrinking at a stunning 6% annual rate. According to Shadow Stats' chief, John Williams, whenever real (inflation-adjusted) year-on-year M3 turns negative, the economy has always fallen into recession (or if it's already in a slump, the downturn intensifies) six-to-nine months later. Shadow Stats' M3 dropped below the zero line last December, it's not surprising that any number of indicators are faltering, including the ECRI leading indicator.