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We analyze the numerical stability of Finite Difference Lattice Boltzmann Method (FDLBM) by means of von Neumann stability analysis. The stability boundary of the FDLBM depends on the BGK relaxation time, the CFL number, the mean flow velocity, and the wavenumber. As the BGK relaxation time is increased at constant CFL number, the stability of the central difference LB scheme may not be ensured. The limits of maximum stable velocity are obtained around 0.39, 0.43, and 0.43 for the central difference, for the explicit upwind difference, and for the semi-implicit upwind difference schemes, respectively. We derive artificial viscosities for every difference scheme and investigate their influence on numerical stability. The requirements for artificial viscosity is consistent with the conditions derived from von Neumann stability analysis. This analysis elucidates that the upwind difference schemes are suitable for simulation of high Reynolds number flows.