Deflation

This article was quite eye-opening for me. It speaks about the deflation in our economy and the effect it will cause if it is not adjusted. I thought this related to class in the effect of the ways economic systems have evolved and changed to get better. 

"In August, the Fed's Open Market Committee announced that it would hold its balance sheet steady rather than wind it down, by using the proceeds from its huge mortgage-bond portfolio to buy long-term Treasury securities. In November, it shifted course again and began asset purchases it said would total $600 billion -- the so-called "QE2,'' or second round of quantitative easing, meant to shore up the economy by helping to keep long-term bond rates low." This is causing deflation in our economic system and could be waiting around to cause some serious trouble.