The above graph shows the evidence that's grabbed the market's attention of late: yields in Germany and the U.S., which tend to move together, appear to be converging with those of Japan.
July manufacturing production in the U.S. rose at a strong, 8.2% annualized pace in the past six months, and has now reached a new, all-time high. After the devastating recession of 2008-2009, manufacturing production has risen by more than 25%. It's a shame it's taken this long to recover to former highs, but the growth and improvement is nonetheless impressive.
July producer price inflation is up at a solid 2-3% pace, as the graph above shows.
There is no sign in these graphs that the U.S. is in danger of getting sucked into a Japan-style deflation and/or stagnation. If anything stands out here, it's the relatively low levels of U.S. yields in light of the economy's strength and ongoing inflation.