Today's WSJ has a couple of front page articles detailing collapsing prices for commodities, government bonds and common stocks. After years of having our Federal Reserve pump created money out with which to buy government debt, you would think that US deflation would be the least of our concerns. Maybe not, since US Treasuries with a ten year maturity rose in value to a little over 2% yield Wednesday. Euro and Yen demominated government debt rose to even higher prices and lower yields. I have a fair knowledge of economics and finance and this makes no sense to me at all. With all of the liquidity unleased by our own Federal Reserve alone as well as our own government's enormous fiscal deficit, how can we be seeing serious indications of an era of actual deflation? Deflation is what made the Great Depression great. We should all hope that it doesn't actually come to pass in any sustained fashion. Forty years ago, inflation was the real fear in this country, and we endured a sharp recession beginning in the late Carter years to allow the Fed to kill it. Who would have thought that by the second decade of the following century we'd be facing a generally falling wage/price level, which the Fed appears powerless to counter. I'd love to hear some rational explanation of what's going on here.