What's the world's biggest economic concern, even after a decade of globalization? When the U.S. economy will begin to recover and pull out of its recession.

What's, arguably, the world's second biggest economic concern? When China's economy will begin to grow at a stronger rate.

The U.S. and E.U. recessions have decreased demand for China's exports, which in turn has slowed China's GDP growth from more than 11% in 2007 to about 8% in 2008, with even slower growth in the final half of 2008, so says economist David H. Wang, a China expert.

The power of Chinese demand

True, slower Chinese growth has taken pressure off commodity prices globally -- it's a major reason oil, copper, coal, and related commodity prices collapsed in 2008 -- but that reduced demand also has "resulted in a negative-feedback loop," Wang said, slowing the economies of raw material- and commodity-exporting countries, particularly emerging market economies like Brazil.

The new year has arrived, and the inflation hawks -- in this case they're more like inflation police -- apparently have not made balanced analysis one of their New Year's resolutions.

The inflation hawks continue to harp about the danger of "rising inflation" in the U.S., due to the U.S. Federal Reserve's $2.3 trillion balance sheet and Congress's likely large, $700-850 billion fiscal stimulus package as the new Obama Administration takes office.

Where's the inflation?

Still, economist David H. Wang wants to know if the inflation hawks have been evaluating the same economic statistics he has been reviewing.

"Where is this inflation they are talking about?" Wang said. "Based on the 6-month and 12-month trend data, deflation, not inflation, remains the far greater danger. We are more likely to see deflationary conditions than an increase in inflation in 2009, with only a modest increase in inflation in 2010."